Organization: The word is derived from the Greek word organon, which means tool or

instrument, musical instrument, and organ.

An organization is a foundation upon which the whole structure of management is build.

Structure of Organization:

Committees or juries
These consist of a group of peers who decide as a group, perhaps by voting. The difference
between a jury and a committee is that the members of the committee are usually assigned to
perform or lead further actions after the group comes to a decision, whereas members of a jury
come to a decision.

Ecologies: This organizational structure promotes internal competition. Inefficient components

of the organization starve, while effective ones get more work. Everybody is paid for what they
actually do, and so runs a tiny business that has to show a profit, or they are fired.

Matrix Organization: his organizational type assigns each worker two bosses in two different
hierarchies. One hierarchy is "functional" and assures that each type of expert in the organization
is well-trained, and measured by a boss who is a super-expert in the same field. The other
direction is "executive" and tries to get projects completed using the experts. Projects might be
organized by products, regions, customer types, or some other schemes.

Pyramids or Hierarchial: A hierarchy exemplifies an arrangement with a leader who leads

other individual members of the organization. This arrangement is often associated with the basis
that there are enough to imagine a real pyramid, if there are not enough stone blocks to hold up
the higher ones, gravity would irrevocably bring down the monumental structure. So one can
imagine that if the leader does not have the support of his subordinates, the entire structure will
collapse.

Nature of Organizing:

Group of persons- common objectives-division of work-cooperative effects-communication-

central authority-rules and regulations-dynamic element.
Every organization comprises of people who run it. These people share common goals and
objectives. In order to achieve them, these people also share roles and responsibilities with each
other.

An organizational structure is simply the pattern or network of division of these roles and
responsibilities. Thus, which person has to perform which task is what the organizational structure
explains. Such a structure also depicts the hierarchy in which members of an organization rank
themselves.

Why knowledge about organization is important to know for food engineers?

Resource Management: Food engineers often work in large food production facilities or
organizations. Understanding the organizational structure helps them manage resources
effectively, including human resources, equipment, and raw materials. They need to coordinate
with various departments and teams to ensure the smooth operation of food production
processes.

Quality Control: Food engineers are responsible for ensuring the quality and safety of food
products. Knowledge about the organization's quality control processes and standards is crucial
for meeting regulatory requirements and maintaining product consistency.

Regulatory Compliance: Food production is highly regulated to ensure food safety and quality.
Food engineers must be aware of the organizational policies and procedures related to regulatory
compliance. This includes understanding how the organization handles inspections, audits, and
certifications.

Innovation and Research: Organizations often have research and development (R&D)
departments focused on food product innovation. Food engineers need to collaborate with these
departments to develop new products and improve existing ones. Knowledge of the
organization's innovation strategies and priorities is essential.

Cost Management: Food engineers are often tasked with optimizing production processes to
reduce costs while maintaining product quality. Understanding the organization's financial
structure and cost management strategies is crucial for making informed decisions and achieving
cost-efficiency.

Supply Chain Management: Knowledge about the organization's supply chain, including
sourcing of ingredients and distribution channels, is vital for food engineers. They need to ensure
a steady supply of raw materials and the efficient distribution of finished products to meet
consumer demands.

Communication and Collaboration: Food engineers need to communicate and collaborate with
various stakeholders within the organization, including production teams, quality control,
marketing, and sales. Understanding the organizational hierarchy and communication channels
facilitates effective teamwork and problem-solving.

Sustainability and Ethics: Many organizations are increasingly focusing on sustainability and
ethical practices in food production. Food engineers should be aware of the organization's
sustainability initiatives, ethical guidelines, and corporate social responsibility commitments.
Career Advancement: Having knowledge about the organization's structure, culture, and values
can help food engineers advance in their careers. It allows them to align their work with the
organization's goals and contribute effectively to its success.

Risk Management: Understanding how the organization manages risks, including food safety
risks and supply chain disruptions, is essential for food engineers. It enables them to proactively
identify and mitigate potential issues.
The importance of organization?
Efficiency: Organization helps streamline processes and tasks, reducing wasted time and
resources. When things are organized, it's easier to locate what you need and complete tasks
more efficiently.

Productivity: An organized approach enables individuals and teams to work more productively. It
helps prioritize tasks, set goals, and maintain focus on important activities.

Time Management: Organizing tasks and responsibilities allows for better time management. By
scheduling and prioritizing tasks, individuals can make the most of their available time and avoid
procrastination.

Reduced Stress: Disorganization can lead to stress and anxiety. An organized environment, both
physical and digital, can create a sense of calm and control, reducing stress levels.

Improved Decision-Making: Organization provides a clear overview of information and options,

making it easier to make informed decisions. This is crucial in both personal and professional
contexts.

Clarity: Organization brings clarity to situations. It helps individuals understand their goals,
responsibilities, and the steps required to achieve them.

Goal Achievement: Organized planning and execution are key to achieving personal and
professional goals. Without organization, it's challenging to track progress and stay on course.
Resource Optimization: In businesses and organizations, effective organization of resources
(including human resources, finances, and materials) maximizes efficiency and profitability.

Effective Communication: In any group or organization, clear organization facilitates effective

communication. When roles and responsibilities are defined, it's easier to communicate
expectations and collaborate.

Quality Control: In manufacturing and service industries, organization is essential for

maintaining quality control. Processes and procedures must be organized to ensure consistent
quality.

Risk Management: An organized approach to identifying, assessing, and mitigating risks is

crucial in business and project management. It helps anticipate and prepare for potential issues.

Customer Satisfaction: In customer-facing industries, organization ensures that products and

services are delivered on time and meet customer expectations. This enhances customer
satisfaction and loyalty.

Legal and Regulatory Compliance: In many fields, adherence to laws and regulations is
mandatory. Organized record-keeping and compliance efforts help avoid legal issues and
penalties.

Innovation: Organized research and development processes can foster innovation. Organized
data and information can lead to creative insights and breakthroughs.

Sustainability: Organized sustainability efforts are crucial for addressing environmental and
social challenges. Organizations need structured approaches to reduce their environmental
footprint and promote responsible practices.

Personal Development: Organization skills contribute to personal growth and self-improvement.

They help individuals manage their time effectively, set and achieve personal goals, and maintain
a work-life balance.
Structure of Organization: It has two dimensions-
Horizontal:
A flat organization (also known as horizontal organization or flat hierarchy) has an
organizational structure with few or no levels of middle management between staff and
executives.
An example to illustrate how a horizontal organizational structure may operate would be
an advertising agency that has been commissioned to develop a marketing campaign for a large
business. Together, the team would generate a basic concept to anchor the advertising campaign
in the consumer's mind.
Vertical: A vertical organizational structure is an organizational structure with many managerial
hierarchies. Organizations involve many middle layers as intermediaries between top
management and bottom management. It has two types- functional and divisional.
Functional:
it organizes into different departments based on areas and expertise. For example -
company ABC manufactures travel luggage and has nearly 500 employees. It has adopted a
functional organizational structure and created various departments including: Finance,
Marketing , Operations management, Human resources, Information technology, Engineering,
Merchandising, Product development, Retail.
Employees of each department report to their respective team manager, team managers report to
their department manager and each department manager reports to the chief executive officer
(CEO) of the company. For example, all product development employees who are responsible
for developing new luggage designs report to the product development design manager, who
reports to the product development head manager, who reports to the CEO..
Divisional:
Divisional structure is a system of organization where the employees are segmented into semi-
autonomous units known as divisions. It is implemented to organize a company’s operations into
separate divisions or business units, each with its autonomous management.
Daniel owns A.G. Electronics, a leading manufacturer and seller of electronic products. The
company produces a range of electronics, including air conditioners and refrigerators, which are
its two major products. In addition, A.G. Electronics has dedicated marketing and finance teams,
each with its functions.
Difference between functional and divisional structure:
Topic Functional Divisional
Meaning Functional structure groups A divisional organization
people according to expertise, organizes them across
 such as placing all
accountants under the
accounting or revenue
department.
Suitability A functional structure
typically benefits smaller
companies or those that offer
specialized goods or services.
Costs Since responsibilities and
positions are shared around
the organization and are
duplicated less frequently,
functional structures can be
much cheaper.
Managerial autonomy Under a functional
organization, managers have
less autonomy because top
management makes most of
the decisions.
product or service lines,
similar to having a marketing
department for each specific
product.
Divisional structures, which
allow tailoring each region,
division, or sector based on
its offering, are typically
advantageous for larger firms
with various brands, goods,
or services.
Positions are repeated within
divisional organizations,
costing more money since
resources are used twice.
Divisional managers are
given a lot of authority within
the divisional organization.

Types of Organization: two types- formal and informal

Formal Organization: It encompasses the officially sanctioned rules, procedures, and routines
of the organization, as well as the role-defined authority relationships among members of the
organization. Standard operating procedures and organization charts, which are essentially maps
of formal authority relationships, are two of the most important symbols (and products) of formal
organization.

Advantages:

1) Optimum use of resources

2) Disciplined work facilities
3) Job satisfaction
Disadvantages:
1) It spreads rumors early
2) Doesn’t allow flexibility
3) Less scope of creativity
4) Doesn’t allow long time planning
Informal Organization:
An informal organization is a group of people who share a common identity and are committed
to achieving a common purpose. Informal organizations are created by the will and shared
identity of their members. The operation of an organization, in reality, is known as an informal
organization as opposed to a formal organization, which is based on roles and responsibilities.
According to Chester Barnard, "an informal organization is an aggregate of interpersonal
relationships without any conscious purpose but which may contribute to joint results."
Advantages:
1. Fulfills Social Needs:

It meets social needs of the members and hence results in a sense of belongingness among
them.

2. Influence on Productivity:

It has a powerful positive influence on the productivity and job satisfaction.

3. Fast Communication:

It serves as a faster channel of communication.

4. Fulfills Organizational Objectives:

It helps in achieving organizational objectives by compensating the limitations of the formal

structure.

Disadvantages of informal organization are as follows:

1. Resistance to Change:

It is very difficult for management to bring changes in the organization if the informal
organization opposes them. Such resistance may restrict growth of the organization.

2. Creates Rumors:

Sometimes informal organization becomes a disturbing force, which can go against

organizational interests, e.g., spreading rumors in the organization.

3. Lack of specialization:

It is based on the mutual relationships rather than on division of work as anybody can talk to
any person in any department with regard to any topic. Hence, specialization is not possible.

Departments of organization in food industry

  Administration Department: An administrative department is a unit in an organization
that oversees all its daily operations. This can include overseeing the organization's
financial management, managing its strategic planning, directing its budgeting
operations, managing its legal affairs and satisfying its human resource (HR) needs.
 Purchasing Department: A purchasing department or procurement department in a
company is an organizational unit that fulfills these responsibilities.
 Production Department: The production department in a business organization is that
department which engages in the manufacturing or production of goods for the business
organization. The production department is headed by the production manager. Other
workers in this department include technicians, engineers, designers, machine operators
etc.
 Quality Control Department: It is focused not only on product and service quality but
also on the means to achieve it.
 Marketing Department: The marketing department of any enterprise is responsible
for promoting the products, ideas and mission of the enterprise, finding new customers,
and reminding existing customers that you are in business. It organizes all the activities
that are concerned with marketing and promotion.
1) Penetration Strategy: Penetration strategy is the concept of taking aggressive action to
greatly expand one's share of total sales in a market. The resulting increased sales volume
typically allows a business to produce goods or obtain merchandise at lower cost, thereby
allowing it to generate a higher profit percentage.
2) Price Skimming Strategy: Price skimming is a product pricing strategy by which a firm
charges the highest initial price that customers will pay and then lowers it over time. As
the demand of the first customers is satisfied and competition enters the market, the firm
lowers the price to attract another, more price-sensitive segment of the population.
Market Segmentation: Market segmentation is a marketing term that refers to aggregating
prospective buyers into groups or segments with common needs and who respond similarly to a
marketing action. Market segmentation enables companies to target different categories of
consumers who perceive the full value of certain products and services differently from one
another.
Types of Martket Segmentation:

Demographic Segmentation

Demographic segmentation is one of the simple, common methods of market segmentation. It

involves breaking the market into customer demographics as age, income, gender, race,
education, or occupation.

Example: The market segmentation strategy for a new video game console may reveal that
most users are young males with disposable income.

Firmographic Segmentation
Firmographic segmentation is the same concept as demographic segmentation. However,
instead of analyzing individuals, this strategy looks at organizations and looks at a company's
number of employees, number of customers, number of offices, or annual revenue.

Example: A corporate software provider may approach a multinational firm with a more
diverse, customizable suite while approaching smaller companies with a fixed fee, more simple
product.

Geographic Segmentation

Geographic segmentation is technically a subset of demographic segmentation. This approach

groups customers by physical location, assuming that people within a given geographical area
may have similar needs. This strategy is more useful for larger companies seeking to expand
into different branches, offices, or locations.

Example: A clothing retailer may display more raingear in their Pacific Northwest locations
compared to their Southwest locations.

Behavioral Segmentation

Behavioral segmentation relies heavily on market data, consumer actions, and decision-making
patterns of customers. This approach groups consumers based on how they have previously
interacted with markets and products. This approach assumes that consumers prior spending
habits are an indicator of what they may buy in the future, though spending habits may
change over time or in response to global events.

Example: Millennial consumers traditionally buy more craft beer, while older generations are
traditionally more likely to buy national brands.1

Psychographic Segmentation

Often the most difficult market segmentation approach, psychographic segmentation strives to
classify consumers based on their lifestyle, personality, opinions, and interests. This may be
more difficult to achieve, as these traits (1) may change easily and (2) may not have readily
available objective data. However, this approach may yield strongest market segment results as
it groups individuals based on intrinsic motivators as opposed to external data points.

Example: A fitness apparel company may target individuals based on their interest in playing
or watching a variety of sports.

Human resource Department:

A human resources (HR) department performs essential tasks for a business such as recruiting,
hiring, training, procuring benefits and acting as a liaison between employees and management.
These duties are essential to the operations and success of a business.