Organization and Management:
Definition, function & different styles
Organization
The term ‘organization’ is used in two different senses-(1) as a process and (2) as a
structure.
Organization as a process – Organization is a process of (a) determining what must
be done to achieve the objectives; (b) breaking down the activities into segments small
enough to be performed by an individual; and (c) providing means of coordinating the
efforts of the job holders.
Organization as a structure – It is referred to as the structure within which the various
factors of an enterprise, men and materials combine to achieve the objectives of the
enterprise. Accordingly organization may be defined as “a setting for achieving
certain goals.” or “ two or more people who work together in structured way to
achieve a specific goal or set of goals”
The organization structure can also be defined as “a machine through which
management works to accomplish its task.”
Characteristics of organization
When organization is rationally structured, shows the following characteristics:
1. Men and physical objects have been deliberately brought together to achieve a
defined goal.
2. The manner in which the task is to be accomplished is based on the calculation
and reason, which distinguish it spontaneous formation or from traditional
organization.
3. It has been formed as a legal entity.
4. Like a biological system, organization exhibits the process of growth and
development.
Importance of organization
Organization is important due to:-
1. It increases managerial efficiency in number of ways.
2. It ensures an optimum use of human efforts through specialization.
3. It places a proportionate and balanced emphasis on various activities.
4. It facilitates coordination in the enterprise.
5. It provides scope for training and developing men.
6. It helps to consolidate growth and expansion of the enterprise.
Management
Management is- “ getting things done by others” or “the process of achieving desires
results/goals through utilization of human and material resources.”
Who / What is a manager?
A manager is an individual in an organization who holds a position of authority and
makes decisions about the allocation of resources.
In other words,-“ People responsible for directing the efforts aimed at helping
organizations achieve their goals.
Functions of management-
The functions of management are:
1. Planning- the process of establishing goals and selecting a future course of
action for their accomplishment. In other word planning is – “working out in
broad outline the things that need to be done and the methods for doing them to
accomplish the purpose which is set for the enterprise."
Goals: The foundation of planning-
Goals are those ends that an organization seeks to achieve by its existence and
operation. Goals are predetermined and they describe future desired results
toward which present efforts are directed.
Why organizations plan-
Organizations plan for four basic reasons: 1) planning helps them succeed, 2) it
provides direction and sense of purpose, 3) it helps managers cope with change
and 4) it contributes to the performance of other managerial functions.
Various forms of standing and single use plans-
The three main forms of standing plans are policies, procedures and rules.
Policy- A general statement that serves to guide decision making.
Procedure- A series of related steps that are to be followed in an established order to
achieve a given purpose.
Rule- A statement that either prescribes or prohibits action by specifying what an
individual may or may not do in a given situation.
The three main forms of single use plans are budgets, programs and projects.
Budget- A single use plan that deals with the future allocation and utilization of
various resources for different organization activities over a given period.
Program- A single use plan intended to accomplish a specific goal within a fixed time.
Project- Usually a subset or component part of a specific program.
2. Organizing- the process of dividing work among groups and individuals and
coordinating their activities to accomplish/achieve goals/objectives.
3. Staffing and human resource management- the process of ensuring that
competent employees are selected, developed and rewarded for accomplishing
goals.
4. Leading and interpersonal influence- the process of inducing individuals or
groups to assist willingly and harmoniously in accomplishing goals.
5. Controlling- the process of ensuring the efficient accomplishment of goals.
The management process-
The phrase “the management process” is used to refer collectively to the five
functions of management.
Planning
Organizing
Controlling
Leading Staffing
The management process
Different levels of management-
1. First line management- The duty of first-line management is to influence the way
work is performed. First-line managers are responsible for directly managing
operating (non managerial) employees and resources.
2. Middle management- The duty of middle management is to integrate the
activities of different work groups so they operate in harmony with one another
and are better able to cope with the demands made upon them.
3. Top management- The duty of top management is to determine the form of an
organization and define its overall character, mission and direction.
Three essential skills used by all managers
In general, managers use three essential skills- technical, human and conceptual.
1. Technical skill- The knowledge and ability necessary to perform a specific
2. task.
3. Human skill- The ability to work with other people effectively.
4. Conceptual skill- The ability to see an organization as a whole.
First line management Middle management Top management
CON
CEPTUAL
SKILLS
H U
skills
M A N
SK I L L S
T E C H N ICAL
S K I L
L S
M a n a g e m e n t L e v e l
Variations of skills necessary at different management levels
Principles of management
Henry Fayol , the father of the modern management theory describes 14 basic
principles of management. They are:
1) Division of work : Specialization increase output by making employee’s efficient.
2) Authority and Responsibilities : Authority is needed to carry out managerial
responsibility.
3) Discipline : Employees must obey and respects the rules and regulations of the
organization.
4) Units of commands : Each employee should receive order from only one
superior.
5) Unity of direction : Similar activities in an organization should be grouped
together under one manager.
6) Sub ordination of individuals : In respect to general interest, interest of the
individuals should be placed before the interest of the organization.
7) Remuneration : Workers must be paid in fair wages for their service.
8) Centralization & decentralization : To what extent authority should be Centralized
or decentralized shall be decided by the management or authority.
9) Scalar chain : The line of all authority from top management to the lowest rank is
the scalar chain .
MD DMD GM Manager Supervisor Workers
10) Order : People and material should be right place in right time.
11) Equity : Manager should be kind and fair to their subordinate.
12) Stability : Job should be stable.
13) Initiative : Sub ordinate should have freedom to take initiative.
14) Esprit De Corps/Union is strength : Harmonious effort among individuals is the
key to organization’s success.
Basic Managerial Role :
Henry Mintzberg found ten managerial roles falls into three categories
Categories Roles Sample activities
Interpersonal Figure head greeting visitors, attending ribbon cutting
ceremony
Leader Motivating employees and training
Liaison (Link) Co-ordinating activity of people, group and
organization
Informational Monitor Reading periodicals and reports, maintaining
personal contact
Disseminator Holding informational meetings, making
phone calls to relay information.
Spokes person Holding board meeting giving information to
the media
Decisional Entrepreneur Developing new idea for innovation
Disturbance handler Resolving conflict between the subordinates
Resource allocator Performing any activities that involves
budgeting
Negotiator Reaching agreement with labor union
POSDCORB
In 1937, social scientists Luther Gulick and L. Urwick describe seven "major activities
and duties of any chief executive". Since then, the acronym POSDCORB is used to
describe the 7 functions of managers:
Where P stands for Planning. O stands for Organizing. ,S stands for Staffing. ,
D stands for Directing., CO stands for Coordinating, R stands for Reporting
( Keeping those to whom the executive is responsible as well as subordinates informed
through records, research and inspections) and B stands for Budgeting ( Fiscal
planning, accounting and control.)
