ORGANIZATION

WHAT IS AN ORGANIZATION?

• A process which integrates different type of activities to achieve

organizational goals and objectives. To achieve these goals there
must be competent management providing them all those
factors to perform their job efficiently and effectively.
• A process of integrating and coordinating the efforts of men and
material for the accomplishment of set objectives.
CHARACTERISTICS OF ORGANIZATION

• An instrument used by the management for attainment of preplanned

objectives.
• Management guides and directs the organization.
• A set of rules and instrument are communicated to all connected with the
organization.
• It prefers to a group of personnel whose possitions, rights,responsibilities are
well defined and classified according to the nature of assignments .
FUNCTIONS OF ORGANIZATION

• Subdivision of main work into small groups

• Based on principles of equality division of different activities
• Selection of suitable personnels and allocation of jobs according to
suiability
• Allotments of rights and authority to those who have been assigned the job
so that may be able to accomplish their job satisfactorily
• Determination of positions at different levels
IMPORTANCE OF ORGANIZATION

• Makes the management simple and effective

• Encourages specialization
• Improves techniques
• Encourages constructjve thinking
• Increase productivity
• Accelerates the progress
ORGANIZATIONAL STRUCTURE

An organizational structure is a visual diagram of a

company that describes what employees do, whom they
report to, and how decisions are made across the
business.
ORGANIZATIONAL STRUCTURE
- KEY TERMS
• Departementalization
• Delegation
• Scalar principle
• Span of control
• Centralization or Decentralization
• Contingency approach
DEPARTEMENTALIZATION / DIVISION

• The grouping of related functions into manageable units to achieve the objectives of the enterprise in the most
efficient and effective manner.
• The forms by :
• Function
• Process
• Product
• Market/Customer
• Geographic area
• Matrix structure
• Circular Structure
• Flat Structure
• Network Structure
DEPARTEMENTALIZATIO
N : FUNCTION BASED
DEPARTEMENTALIZATIO
N : PROCESS BASED
DEPARTEMENTALIZATIO
N : PRODUCT BASED
DEPARTEMENTALIZATIO
N : MARKET BASED
DEPARTEMENTALIZATIO
N : GEOGRAPHICAL
BASED
MATRIX
STRUCTUR
E
CIRCULAR
STRUCTUR
E
FLAT
STRUCTURE
= ORGANIC
STRUCTURE
DELEGATION

• Delegation is the work a manager performs to entrust others with

responsibility and authority and to create accountability for results. It is an
activity of the organizing function
SCALAR PRINCIPLE

= Chain of command
• This authority flows down the chain of command from the top level to the
first or lowest level in the organization.
SPAN OF CONTROL

can be defined as the total number of direct subordinates that a

manager can control or manage
CENTRALIZATION

• occurs in an organization when a limited amount of authority is

delegated.
DECENTRALIZATION

• occurs when a significant amount of authority is delegated to

lower levels in the organization.
CONTINGENCY APPROACH

• an approach to organizational structure that states that the most appropriate

organizational structure depends on the situation, consisting of the
particular technology, the environment, and many other dynamic forces.