C ONCEPTS OF ORGANISING Static concept Dynamic concept
CHARACTERISTICS OF ORGANISATION : Division of workCo-ordination Common objectives co-operative relationship Well-defined authority – responsibility relationships
N ATURE OF BUSINESS ORGANISATION An Art A Science
I NFORMAL ORGANISATION Informal organisation refers to the relationship between people in an organisation based not on formal hierarchy but on personal attitudes, whims, prejudices likes and so on. It refers to what people actually do, based not on procedures and regulations but on some taste, culture etc.
FEATURES: Relations not planned No written rules and regulations Natural process Common interests Voluntary membership Lack of stability
N EED FOR INFORMATION GROUPS Source of protection Job satisfaction Improves communication overcoming managerial limitations Helps in coordination and control
A DVANTAGES : Fast communicationFulfills social needs Supports formal Organization Lightens burden of formal managers
D ISADVANTAGES : Spread rumors Resists change Emphasis on individual interest
14 principles of organisation Principle of Objectives Principle of Specialization Principle of Co-ordination Principle of Authority and Responsibility Principle of Definition Span of Control Principle of Balance Principle of Continuity Principle of Uniformity Principle of Unity of Command Principle of Exception Principle of Simplicity Principle of Efficiency Scalar Principle
REQUISITES OF AN EFFICIENT BUSINESS ORGANISATION Able organizers Sound business policies Proper supervision and control Co-operation and co-ordination Efficient personnel organization Capacity for business expansion
Helps in optimum utilization of technological innovations Helps in administration Promotes growth and diversification Easy coordination Training and development of personnel Encourages initiative Better human relations
Objectives of organisation To help management To increase production Co-operation of employees
1. Identification of activities 2. Grouping jobs into departments 4. Delegation of authority3. Assigning duties PROCESS OF ORGANISATION
ORGANISATION CHARTS An organization chart is a diagrammatical form which shows important aspects of an organization including the major functions and their respective relationships. By…George Terry
ADVANTAGES o It is a managerial tool. It helps in specifying authority and responsibility of every position. o It also helpful in decision making process. o It will help in pointing out the faults, deficiencies in the organisation.
LIMITATIONS It does not show the degree of authority and responsibility. It ignore informal organisational relationships. It causes confusion and misunderstanding.
ORGANISATION MANUALS An organisation manual provides and supplements additional details to the information supplied by organisational charts.
TYPES OF MANUALS POLICY MANUAL ORGANISATION MANUAL RULES AND REGULATIONS MANUAL DEPARTMENTAL MANUAL
ADVANTAGES Written information Helpful in day to day working Avoiding conflicts Helpful to new employees Quick Decisions
OOrganisation theory is a general framework for explaining and understanding the behaviour patterns in organisation. As it focuses on design and structure so it makes clear that what is happening in the organization IIt also provides a scientific base for managerial actions like for predictions, controlling and influencing of behaviour with a view to increase the efficiency of the organization.
OBJECTIVES To provide framework for explaining and understanding the behaviour pattern in organisation. To provide a ground for managerial activities. To provide a scientific base for managerial actions like prediction, controlling.
Organisation Theory Classical theory Neo- Classical Theory Modern Theory
Classical Organisational Theory The classical writers viewed organization as a machine and human being as a component of that machine and human beings as a component of that machine they were of the view that the efficiency of organization can be increased by increasing the efficiency of the human beings. Their emphasis was on specialization and coordination of activities. Most of the writers gave emphasis on the top level and a few at the lower level.
Drawbacks of classical theory It concentrates on line and staff structure s. they did not try to find the reason if a particular structure is more effective than the other. In this theory human behavior is ignored the classical thinkers did not realize the complexity of human behavior. The assumption that organisation is a closed system is unrealistic. Organisation is greatly influenced by environment. A modern organisation is a open organization and has interactions with the environment.
Neo- Classical Theory The word ‘neo’ means new. So new classical theory as the name suggest is only an improvement or identification over the classical theory. While classical theories focused more on structure and physical aspect of work, the neo classical theory focused on primary psychological and social aspects of workers, it was mainly concerned with the employee. Hawthorne study conducted by Elton mayo revealed that social factors such as important factor for manager to consider, they laid more emphasis on effective communication.
Propositions Social system. Informal organisation exit with formal. Human is independent and is behavior can predicted in terms of work factor. Motivation is a complex process. Conflict between organizational and individual goals. Team work is essential. Man approach is not rational always. Communication is necessary.
Modern Organisation Theory Modern organisation is of event origin it has been developed in early 1960. it is the combination of elements of neo classical and classical theory. This theory tries to overcome the drawbacks of earlier theories. This theory is integrating nature, this theory may be understood in two approach. System approach Contingency approach
System Approach This approach studies the organisations in its totality that is why it is a integral part of modern theory. A study has identified 5 systems of organization Technical sub-system Supportive sub-system Maintenance sub-system Adaptive sub-system managerial sub-system
Contingency Approach It is also known as situational approach it helps to provide a organizational design which suits a particular unit. As system approach offers models which may not be suit every type of or suitable for one unit may not be suitable for another. A structure is suitable if it is tailor made for an enterprise, both internal and external factors must be considered. Factors influencing this theory Environment Technology Size of operations