PRINCIPLES OF BUSINESS MANAGEMENT

ORGANIZATION
Introduction

DEFINITIONS:
Organization involves the establishment of an intentional structure of roles through determination and enumeration of the activities required to achieve the goals of an enterprise and each part of it : the grouping of these activities the assignment of such groups of activities to manager, the delegation of authority to carry them out, and provision for co-ordination of authority and informational relationship horizontally and vertically in the organizational structure. - Koontz and O Donnel.

.CONT.
Organizational is a tool or a design with which people in the organization work. - Taylor Organizational is the form of every human association for the attainment of a common purpose - Money and Reiley

IMPORTANCE/ADVANTAGES OF ORGANIZATION
      

Facilitates attainment of the objectives of the enterprise. Facilitates optimum use of resources and new technological developments. Facilitates Creativity and Diversification. Stimulates Creativity and Innovation. Facilitates effective communication. Encourages better relations between the labour and the management. Increase employee satisfaction and decreases employee turnover.

ORGANIZATIONAL STRUCTURE
An organizational Structure shows the authority and responsibility relationships between the various positions in the organization by showing who reports to whom. It is a set of planned relationship between groups of related functions and between physical factors and personnel required for the achievement of Organizational goals.

SIGNIFICANCE OF ORGANIZATIONAL STRUCTURE

Org. Structure contributes in the following ways to the efficient functioning of organization:  Clear cut Authority Relationship.  Pattern of Communication.  Location of Decision Centres.  Proper Balancing.  Stimulating Creativity.  Encouraging Growth.  Making use of Technological Improvement.

TYPES OF ORGANIZATIONAL STRUCTURE

Organization requires the creation of Structural relationship among different departments and the individuals working there for the accomplishment of desired goals. The establishment of formal relationships among the individuals working in the organization is very important to make clear the lines of authority in the organization and to coordinate the efforts of different individuals in a efficient manner. In order to organize the efforts of individuals, any of the following types of organizational Structure may be set up.

OTHER TYPES OF ORG. STRUCTURE

BOOKS REFERRED:
Principles and Practice of Management. By : T.N.Chhabra Page No.242-243,259,261,264  Introduction to Management By: ICFAI center for Management Research Page no. 224-237


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