Organization

Organization

According to keith Davis, “Organisation may be defined

as a group of individuals, large or small, that is
cooperating under the direction of executive leadership
in accomplishment of certain common object.”
According to Chester I. Barnard, “Organisation is a
system of co-operative activities of two or more
persons.”
According to Mooney and Railey, “Organisation is the
form of every human association for the attainment of
a common purpose.”
 Characteristics of Organization

Basic function of Management.

Related to Objectives.

It is an entity.

It is a group of people.

It is a Process.

It is a structure.
 Process of Organization

Determination of Objectives.

Identification of work.

Grouping of Activities.

Creation of Managership.

Division of work within the Departmental Set-up.

Arrangement of Physical Facilities.

 Process of Organization

Developing Relations.

Provision of a Channel of Communication

Coordination of Various Activities.

Control and Corrective Action.

 Importance of an Organization

It promotes specialization.

It promotes division of labour.

It avoids omissions, overlapping and duplication of

efforts.

It clarifies authority-responsibility relationship.

 Importance of an Organization

It facilitates coordination.

It establishes communication links.

It facilitates management by exception.

It increases efficiency of management.

Other Advantages.
 Principles of Organization

Principle of Delegation of Authority.

Principle of Coordination.

Principle of Continuity.

Principle of Definition.

Principle of Explanation.

Principle of Equilibrium Balance.

Principle of Flexibility.
 Principles of Organization

Principle of Unity of Objectives.

Principle of Responsibility.

Principle of Specialization.

Principle of Span of Control.

Principle of Scalar Chain.

Principle of Simplicity and Homogeneity.

Principle of Unity of Command

 Principles of Organization

Principle of Uniformity.

Principle of Efficiency.

Principle of Leadership.

Principle of Exception.

Principle of Joint Decision.

 Departmentation

Departmentation designates a distinct area, division

or a branch of an enterprise over which a manager
has an authority for the performance of specified
activities.
 Bases of Departmentation

Departmentation by Function.

Departmentation by Product or Services.

Departmentation by Geographic Coverage.

Departmentation by Process.

Departmentation by Customers.
 Bases of Departmentation

Departmentation by Time.

Departmentation by Marketing Channel.

Departmentation by Numbers.

Hybrid Approach to Departmentation.

 Delegation of Authority

Delegation of Authority means division

of authority and powers downwards to the
subordinate. 
Delegation is about entrusting someone else to do
parts of your job. 
Delegation of authority can be defined as
subdivision and sub-allocation of powers to the
subordinates in order to achieve effective results.
 Types of Organization

Formal Organization.
Informal Organization.
Matrix Organization.
Project Organization.
Virtual Organization.