Defining Organization, Management, and Management in Organization

Organization:
A social unit of people that is structured and managed to meet a need or to pursue collective goals. All
organizations have a management structure that determines relationships between the different
activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems--they affect and are affected by their environment.

A set-up where individuals from diverse backgrounds, different educational qualifications and varied
interests come together to work towards a common goal is called an organization.

The employees must work in close coordination with each other and try their level best to achieve the
organization’s goals.

It is essential to manage the employees well for them to feel indispensable for the organization.

A group of people who work together in an organized way for a shared purpose

Organizations of people come in many forms. They might be a random group of people who
spontaneously came together to address a short-term need, such as collecting litter along a certain
stretch of road. Or, it might be a carefully collected, aligned and integrated group of people who came
together for the long-term to address a long-term need, such as stopping poverty in a certain country.

An overall organization can have a variety of small organizations within it, for example, various
departments and teams of people. The way that people work together in an organization depends on a
variety of factors, including the values in their culture, the nature of their leadership and types of
current needs they are working to address. See What Makes Each Organization Unique.

“Organization is the process of identifying and grouping work to be performed, defining and delegating
responsibility and authority and establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives.”

“Organization is the process so combining the work which individuals or groups have to perform with
the facilities necessary for its execution, that the duties so performed provide the best channels for the
efficient, systematic, positive and coordinated application of the available effort”

Two Concepts of Organization:

Static Concept:

Under static concept the term ‘organisation’ is used as a structure, an entity or a network of specified
relationship. In this sense, organisation is a group of people bound together in a formal relationship to
achieve common objectives. It lays emphasis on position and not on individuals.
Dynamic Concept:

Under dynamic concept, the term ‘organisation’ is used as a process of an on-going activity. In this
sense, organisation is a process of organising work, people and the systems. It is concerned with the
process of determining activities which may be necessary for achieving an objective and arranging them
in suitable groups so as to be assigned to individuals. It considers organisation as an open adoptive
system and not as a closed system. Dynamic concept lays emphasis on individuals and considers
organisation as a continuous process.

Organization's Purpose and Priorities

Mission

All of the people in an organization should be working toward a common purpose. That purpose is often
referred to as the mission. The mission might be implied to its members or explicitly expressed to them.
When explicitly expressed, it is often in the form of a mission statement.

Vision

The organization's vision is an image of what success would look like at some point in the future, both
for the people that the organizations serves and for the organization itself. It can be very inspirational
and motivational to explicitly articulate that vision in a statement like the mission statement during
strategic planning.

Values

The organization's values are the overall priorities in the nature of how the organization wants to work
toward its mission. Values can be reflected in how the people in the organization are actually working
together. These might be referred to as real or enacted values. Values can also be about how the
organization wants it members to work together. These might be referred to as desired values.

Strategic Priorities

These are the overall, most important matters and activities for members to attend to, when working
toward the mission. Similar to the mission, vision and values, they might be implied or explicit among
members. The priorities might be associated with assignments for who is address which ones and by
when. The priorities are often referred as "strategic goals" during a strategic planning process.

Some of the characteristics of Organization are:

Division of Work:

Organisation deals with the whole task of business. The total work of the enterprise is divided into
activities and functions. Various activities are assigned to different persons for their efficient
accomplishment. This brings in division of labour. It is not that one person cannot carry out many
functions but specialisation in different activities is necessary to improve one’s efficiency. Organisation
helps in dividing the work into related activities so that they are assigned to different individuals.
Co-Ordination:

Co-ordination of various activities is as essential as their division. It helps in integrating and harmonising
various activities. Co-ordination also avoids duplications and delays. In fact, various functions in an
organisation depend upon one another and the performance of one influences the other. Unless all of
them are properly coordinated, the performance of all segments is adversely affected.

Common Objectives:

All organisational structure is a means towards the achievement of enterprise goals. The goals of various
segments lead to the achievement of major business goals. The organisational structure should build
around common and clear cut objectives. This will help in their proper accomplishment.

Co-operative Relationship:

An organisation creates co-operative relationship among various members of the group. An organisation
cannot be constituted by one person. It requires at least two or more persons. Organisation is a system
which helps in creating meaningful relationship among persons. The relationship should be both vertical
and horizontal among members of various departments. The structure should be designed that it
motivates people to perform their part of work together.

Well-Defined Authority-Responsibility Relationships:

An organisation consists of various positions arranged in a hierarchy with well defined authority and
responsibility. There is always a central authority from which a chain of authority relationship stretches
throughout the organisation. The hierarchy of positions defines the lines of communication and pattern
of relationships.
Management:
Management is everywhere. Any time people work to achieve a goal, they are engaging in management.
At least as far back as the building of pyramids in ancient Egypt or Mesoamerica, people have used
principles of management to achieve goals. Today, organizations of all types—social, political, and
economic—use management techniques to plan and organize their activities.

Management is a universal phenomenon. It is a very popular and widely used term. All organizations -
business, political, cultural or social are involved in management because it is the management which
helps and directs the various efforts towards a definite purpose. According to Harold Koontz,
“Management is an art of getting things done through and with the people in formally organized groups.
It is an art of creating an environment in which people can perform and individuals and can co-operate
towards attainment of group goals”. According to F.W. Taylor, “Management is an art of knowing what
to do, when to do and see that it is done in the best and cheapest way”.

Management is a purposive activity. It is something that directs group efforts towards the attainment of
certain pre - determined goals. It is the process of working with and through others to effectively
achieve the goals of the organization, by efficiently using limited resources in the changing world. Of
course, these goals may vary from one enterprise to another. E.g.: For one enterprise it may be
launching of new products by conducting market surveys and for other it may be profit maximization by
minimizing cost.

Management involves creating an internal environment: - It is the management which puts into use the
various factors of production. Therefore, it is the responsibility of management to create such
conditions which are conducive to maximum efforts so that people are able to perform their task
efficiently and effectively. It includes ensuring availability of raw materials, determination of wages and
salaries, formulation of rules & regulations etc.

Therefore, we can say that good management includes both being effective and efficient. Being effective
means doing the appropriate task i.e, fitting the square pegs in square holes and round pegs in round
holes. Being efficient means doing the task correctly, at least possible cost with minimum wastage of
resources.

As a process, management refers to a series of inter-related functions. It is the process by which

management creates, operates and directs purposive organization through systematic, coordinated and
co-operated human efforts, according to George R. Terry, “Management is a distinct process consisting
of planning, organizing, actuating and controlling, performed to determine and accomplish stated
objective by the use of human beings and other resources”.

1. Management is a social process - Since human factor is most important among the other
factors, therefore management is concerned with developing relationship among people. It is
the duty of management to make interaction between people - productive and useful for
obtaining organizational goals.

2. Management is an integrating process - Management undertakes the job of bringing together

human physical and financial resources so as to achieve organizational purpose. Therefore, is an
important function to bring harmony between various factors.
 3. Management is a continuous process - It is a never ending process. It is concerned with
constantly identifying the problem and solving them by taking adequate steps. It is an on-going
process.

Like various other activities performed by human beings such as writing, playing, eating, cooking etc,
management is also an activity because a manager is one who accomplishes the objectives by directing
the efforts of others. According to Koontz, “Management is what a manager does”. Management as an
activity includes -

1. Informational activities - In the functioning of business enterprise, the manager constantly has
to receive and give information orally or in written. A communication link has to be maintained
with subordinates as well as superiors for effective functioning of an enterprise.

2. Decisional activities - Practically all types of managerial activities are based on one or the other
types of decisions. Therefore, managers are continuously involved in decisions of different kinds
since the decision made by one manager becomes the basis of action to be taken by other
managers. (E.g. Sales Manager is deciding the media & content of advertising).

3. Inter-personal activities - Management involves achieving goals through people. Therefore,

managers have to interact with superiors as well as the sub-ordinates. They must maintain good
relations with them. The inter-personal activities include with the sub-ordinates and taking care
of the problem. (E.g. Bonuses to be given to the sub-ordinates).

Two Aspects of Management

When people talk about management, they may be referring to very different aspects. They may be
talking about the people who are the managers, especially those people in strategic positions who make
important decisions for the organization, such as the executive officers, president, or general manager.
Or, they may be referring to the activities and functions of an organization to achieve organizational
goals.

Management as People

The people with the responsibility and authority to determine the overall direction of the organization
are often referred to as the management of the organization. Management has the authority to decide
what the goals of the organization should be and how those goals will be achieved. Individuals in upper
management must be aware of conditions in the organization’s environment and have knowledge of the
total resources of the organization. They put these two together to determine the most promising path
for the organization to pursue.

Management as Process

As we saw in the earlier example, decision making and planning are required before actions are taken.
Defining the goals of the organization, planning the actions to meet the goals, and organizing the
resources needed to carry out the actions are all vital functions of management. Planning and organizing
ensure that everyone in the organization is working together toward meeting goals.
All organizations—businesses, the military, government departments, nonprofit service providers, or
public school systems—require management because they all are trying to achieve goals. And although
it may seem straightforward, the management process is complex. In most cases, management
functions include:

 applying and distributing organizational resources effectively

 acquiring new resources when necessary

 analyzing and adapting to the ever-changing environment in which the organization operates

 complying with legal, ethical, and social responsibilities of the community

 developing relationships with and among people to execute the strategies and plans

Perhaps the most critical of all the management processes listed earlier is creating the systems and
processes that allow people to work effectively toward organizational goals. In fact, many people define
management as the art of getting things done through people. Although technology and data are
increasingly important in modern organizations, people continue to be a primary focus of management.
Putting this all together, we can propose a definition of management: management is the process of
planning, organizing, leading, and controlling people in the organization to effectively use resources to
meet organizational goals.

Management in some form or another is an integral part of living and is essential wherever human
efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are
always at play, whether we manage our lives or our business.

Management is a process of planning, decision making, organizing, leading, motivation and controlling
the human resources, financial, physical, and information resources of an organization to reach its
goals in an efficient and effective manner.

Management is an art of getting things done through and with the people in formally organized groups.
It is an art of creating an environment in which people can perform and individuals and can co-operate
towards attainment of group goals. ‘

Management is a set of principles relating to the functions of planning, organizing, directing and
controlling, and the application of these principles in harnessing physical, financial, human and
informational resources efficiently and effectively to achieve organizational goals.

Management can be defined as the process of administering and controlling the affairs of the
organization, irrespective of its nature, type, structure and size. It is an act of creating and maintaining
such a business environment wherein the members of the organization can work together, and achieve
business objectives efficiently and effectively.
Characteristics of Management:

Management in Organization:
 Organization management refers to the art of getting people together on a common platform to
make them work towards a common predefined goal.

 Organization management enables the optimum use of resources through meticulous planning
and control at the workplace.

 Organization management gives a sense of direction to the employees. The individuals are well
aware of their roles and responsibilities and know what they are supposed to do in the
organization.

An effective management ensures profitability for the organization. In a layman’s language

organization management refers to efficient handling of the organization as well as its employees.

Need for Organization Management

 Organization management gives a sense of security and oneness to the employees.

 An effective management is required for better coordination among various departments.

 Employees accomplish tasks within the stipulated time frame as a result of effective
organization management.
  Employees stay loyal towards their job and do not treat work as a burden.

 Effective organization management leads to a peaceful and positive ambience at the workplace.

Essential Features of Organization Management

1. Planning

 Prepare an effective business plan. It is essential to decide on the future course of action
to avoid confusions later on.

 Plan out how you intend to do things.

2. Organizing

 Organizing refers to the judicious use of resources to achieve the best out of the
employees.

 Prepare a monthly budget for smooth cash flow.

3. Staffing

 Poor organization management leads to unhappy employees who eventually create

problems for themselves as well as the organization.

 Recruit the right talent for the organization.

4. Leading

 The managers or superiors must set clear targets for the team members.

 A leader must make sure his team members work in unison towards a common
objective. He is the one who decides what would be right in a particular situation.

5. Control

 The superiors must be aware of what is happening around them.

 Hierarchies should be well defined for an effective management.

 The reporting bosses must review the performance and progress of their subordinates
and guide them whenever required.

6. Time Management

 An effective time management helps the employees to do the right thing at the right
time.

 Managing time effectively always pays in the long run.

7. Motivation

 Motivation goes a long way in binding the employees together.

  Appreciating the employees for their good work or lucrative incentive schemes go a long
way in motivating the employees and make them work for a longer span of time.

The process of organizing, planning, leading and controlling resources within an entity with the overall
aim of achieving its objectives. The organizational management of a business needs to be able to make
decisions and resolve issues in order to be both effective and beneficial.

Business success requires thoughtful strategy developed into a plan that is executed effectively.
Organizational management is the process of leading a company and effectively using or controlling its
assets and resources. Organizational management goes well beyond a corporate structure; it requires
leaders to have methods in place to resolve issues and develop solutions that help the business move
closer to its desired goals and vision.

Organizational management is a combination of many components of leadership within a company. The

actual structure of the company is utilized to gather information to analyze it. This analysis is then used
to develop strategies that are then implemented and executed via meetings, training and promotion.
Every business utilizes organizational management in a different way contingent on the unique needs of
the business.

Once a plan is implemented, organizational management must monitor and adjust activities depending
on results. If a company is not nimble to change based on feedback, it's organizational management is
not complete. There must be a complete loop of feedback that sets the fluid strategies set from the top
and delegated to the deepest channels of the company where performance results must let leadership
know if strategies are succeeding.

The goal of organizational management is to use the various levels of company leadership in the
leadership hierarchy to set goals, monitor results and build a stronger company. Strategies might involve
employee training, promotional strategies, operations efficiency or any other aspect of the company.

Importance of Organizational Management

A business should place a priority on establishing solid organizational management to create a company
that clearly pursues goal achievement. Business leaders need to be clear on the goals of the company
and implement processes and procedures and are willing to monitor and adjust based on critical
feedback. When this happens, subordinates are clear on how to complete tasks. This creates equilibrium
in the company allowing it to adapt as needed in changing environments. It also gives company workers
the ability to present ideas from the baseline level of production or service that gives senior executives
the raw data needed to improve things.

Companies emphasizing the details and how to execute them properly but willing to accept feedback is
a company positioned for success because it uses resources optimally. Senior level managers that live in
a bubble without considering what the layperson on the assembly line knows is leaving the company
vulnerable to errors and problems. It also means the company may miss opportunities for innovation
that leaves it exposed to innovative competitors. Mismanagement leads to mistakes, missed
opportunities and ultimately higher costs. Proper management effectively uses financial resources and
reduces overall costs.
Investment brokerages are a good example. The organizational design of a company two decades ago
had much less emphasis on online systems that empower clients. Today's market is completely
transformed with the largest advisors offering online services to clients. Brokerages not cognizant of the
consumer feedback because of poor organizational management had leaders who felt that they knew
better from their penthouse corner office. Many of those companies lost market share and even closed
because they refused to implement designs including customer feedback from advisors.

Every organization or workplace has principles or rules governing their employees, which the employees
in question need to be aware of and follow strictly. For instance, employees in any specific department
know the right person to channel their complaints.

Organization management consists of everything the managers or superiors do to ensure the smooth
running of the firm, which also entails creating an enabling environment for the employees to be more
efficient in the discharge of their duties. It also involves the proper use of the available resources
through adequate planning and control of the working environment.

The primary focus of any organization is to achieve its objectives. It could be to increase client base,
improve business reputation, or have substantial financial returns. But profit is still the primary reason
organizations are set up. So, when the business is not making enough profit, it would be difficult to keep
the company running.

With adequate organizational management which entails proper planning, organizing, leading and
control of available resources, firms may end up achieving their objectives at the end of the day. But the
executives should have the capabilities to make decisions and resolve issues for it to be more effective
and beneficial.