CHAPTER 1 ROLE OF

ORGANISATION AND MANAGEMENT

• Concept of Organization
• Nature of organization
• Organization as a system
• Role of organization

• Concept of Management
• Nature of Management

• Role of Management
• Levels of Management
• Relation between Organization and
Management
 CONCEPT OF
• ORGANIZATION…
Organization is the structure in which harmonious inter-relationship of
functions and personnel is created through the process of grouping the
work to be performed, allocating duties and responsibilities, and delegating
authority for the purpose of realizing the objectives of the enterprise.
• In the words of G.E. Milward, “Organization is the harmonious inter-
relation of functions and staff.”
• Louis A. Allen defines organization as “the process of identifying and
grouping the works to be performed, defining and delegating
responsibility and authority and establishing relationship for the
purpose of enabling people to work more effectively together in
accomplishing objectives.”
CONCEPT OF ORGANIZING..
• ‘Organizing’ is a dynamic process and a managerial activity by which different
elements or parts of an enterprise are brought together to obtain a desired result.
• This process places the enterprise into working order by defining and allocating the
duties and responsibilities of different employees and provides it with everything
useful to its functioning—raw material, tools, capital and personnel.
• Theo Haimann defines Organizing as “the process of defining and grouping the
activities of the enterprise and establishing the authority relationships among them. In
performing the organizing function, the manager defines, departmentalizes and assigns
the activities so that they can be effectively executed.”
• Organizing’ can be understood as the creation of a structure of relationships among
various positions and jobs for the realization of the objectives and goals of the
enterprise. In this sense, ‘Organization’ is the vehicle through which goals are sought
to be attained.
NATURE OF
ORGANIZATION…
Association of People

Common Goal

Allocation of Work

Coordination

Social Composition

Hierarchy of Authority

Environment

Process
 ORGANIZATION AS A SYSTEM

• A system is an organized collection of parts that are highly integrated in

order to accomplish an overall goal.
• Changing any single component affects the whole system. There are several
classes of systems, ranging from very simple frameworks all the way to social
systems, which are most complex.
• Organizations are, of course, social systems which are the most complex.
• The organization can be viewed as a system - made up of components which
work together to achieve an overall goal.
• These components can be defined in any number of ways, but one sees them
as different functions.
• For example, the HR team could be one component. The service delivery
staff another component. The volunteers another and so on.
ORGANIZATION AS A SYSTEM
FEATURES OF BUSINESS AS A
SYSTEM
Environment

Boundary

Goals

Inputs

Processing (or the Organization)

Output

Feedback
ROLE OF ORGANIZATION
Facilitating Management Action

Optimum use of organizational resources

Efficiency

Harnessing Experience

Decision making

Communication

Span of control
STEPS IN ORGANIZATIONAL PROCESS

Determination of Activities

Grouping of classification of activities

Allocation or Assignment of duties to individuals

Establishment of Relationships

Delegation of Authority
 CONCEPT OF MANAGEMENT
• Management can be defined as an art & skill of getting things done through
others.
• According to George R. Terry,“Management is the distinct process
consisting of planning, organizing, activating, and controlling activities
performed to determine and accomplishes the objectives by the use of
people and resources.”
• According to Harold Koontz and Heinz Weihrich,“Management is the
process of designing and maintaining an environment in which individuals, working
together in groups, efficiently accomplish selected aims”.
ASPECTS OF MANAGEMENT

Process

Effectiveness

Efficient
NATURE OF MANAGEMENT
Goal Oriented Process

Pervasive

Multidimensional
Management of Work
Management of People
Management of Operations

Continuous Process

Group Activity

Dynamic Function

Intangible Force
ROLE OF MANAGEMENT

Helps in achieving group goals

Optimum utilization of resources

Reduces cost

Establishes sound organization

Essential for prosperity of society

LEVELS OF MANAGEMENT
ROLE OF TOP MANAGEMENT

• To lay down the policies and objective of the organization

• Strategizing the plans of the enterprise and aligning competent
managers to the departments or middle level to carry them out.
• Keeping the communication between the enterprise and the outside
world.
ROLE OF MIDDLE LEVEL
MANAGEMENT
• They make plans for the sub-units of the organization.
• They participate in employment & training of lower level management.
• They interpret and explain policies from top level management to lower level.
• They are responsible for coordinating the activities within the division or
department.
• It also sends important reports and other important data to top level management.
• They evaluate performance of junior managers.
• They are also responsible for inspiring lower level managers towards better
performance.
ROLE OF LOWER LEVEL MANAGEMENT

• Assigning of jobs and tasks to various workers.

• They guide and instruct workers for day to day activities.
• They are responsible for the quality as well as quantity of production.
• They are also entrusted with the responsibility of maintaining good
relation in the organization.
• They communicate workers problems, suggestions, and
recommendatory appeals etc. to the higher level and higher level goals
and objectives to the workers.
• They help to solve the grievances of the workers.
• They supervise & guide the sub-ordinates.
• They are responsible for providing training to the workers.
CLASSIFICATION OF MANAGERS

The Procastinators

The Disengaged

The Distracted

The Purposeful
RELATIONSHIP BETWEEN
ORGANIZATION &
MANAGEMENT
• Organization is the structure by which a harmonious inter-relation is
established between the workers & their work.
• Through organization,authority & responsibility are delegated.
• Organization acts as a tool in the hands of the managers.
• ‘Management’ is the executive process of getting works accomplished by
the subordinate employees.
• Management is the sum total of several activities i.e. making plans, setting
up organization, giving command & direction, motivating the employees,
coordinating & controlling various functions of the enterprise.
• Efficient management largely depends on strong organization.