Definition… Organization is the detailed arrangement of work and working conditions in order to perform the given activities in effective manner.

An identified group of people contribution their efforts towards the attainment of goal is called an organization. Or Organization is the form of every human association for the attainment of a common purpose.

1… Profit organization. 2… Non-profit organization. 3… Manufacturing Organization. 4… Service Organization.

 All the business organizations are profit organization. Operating to reach the goal of making profit. Normally this amount of profit is establish annually in terms of a specific figure in rate of return on investment.

 The main motive of non-profit organization is to provide some kind of services to the society like providing education, medical services etc. Such types of organization charge some amount of fee for the maintenance of organization.

 The objective of such organization is to manufacture the product.

 The objective of such organization is to sell the manufactured product or may offer some services like repairing etc.

1… Division of labor. 2… Co-ordination. 3… Objectives. 4… Authority-Responsibility structure. 5… Communication.

 The total work can be divided into many parts for effective performance of the work. One person or a group of a persons may complete each part of work but, all parts of the work are done with the aim to achieve the main objective of the organization. The work is assigned to a person who is specialized in the particular work.

 Different persons are assigned to different work in one organization but all the works are performed to achieve the objectives. It implies that there is a need of co-ordination among the workers in an organization. Each and every department of the organization should have relationship with each other.

 The objectives of the organization should be defined clearly. In simple words the organization can not exist without objectives for a long period.

 The authority- responsibility structure means the arrangement of the position of staff according to rank system.

 Every organization has its own communication system and the methods. The success of management depends upon the effective system of communication.

 The work can be completed in time whenever a principles are applied or used.  It means that the success or failure of an organization depends upon the principles to be followed in the organization.  Some of the main principles that are useful for the organization are as follows.

 The activities at all levels of organization structure should be geared to achieve the main objectives of the organization. The activities of the different departments may be different in nature but they must work to achieve the organization objectives.

 Specialization means the work that is assigned to each person according to his or her qualification,experience,skill and interests. He should be mentally and physically fit for performing the work assigned to him.

 The objectives of the organization may be achieved quickly whenever co- ordination exists among the workers.

 There are several units functioning separately under one organizational set up. The work of one unit might have been announced after the completion of the work by another department. So it essential that the series of work should be arranged accordingly.

 When many persons are working together in one place,there will be a difference of power and authority.some of these persons will rule and others will be ruled.

 Each work can be completed efficiently wherever the climate or organizational structure facilitates the completion of work. The work should be completed with minimum members, in less time with minimum resources and within the right time.

 Each person is responsible for the work given to him and completed by him.so the responsibility of the junior staff should be clealy defined.

 This is also called chain of command or line of authority. Normally, the line of authority flows from the top level to bottom level. Each and every person should know who is his superior and to whom he is answerable.

 In the business organization, there are number of decisions taken by the officers to run the business.If a complicated problem arises more than one member examines the problems and takes the decisions. Whenever the decision is taken jointly, the decision gives the benefit for a long period.

 The process of dividing the complete work of organization into small unit for effective result is called departmentation.

(1)… Departmentation by functions… (2)… Departmentation by product or service… (3)… Departmentaion by region or area… (4)… Departmentation by customers… (5)… Departmentation by process…

The most commonly followed basis of departmentation is by functions. Under this departmentation, the activities are grouped on the basis of functions, which are to be performed. The following chart may help to understand the departmentation by function.

. General manager Production department Sales department Accounts department Finance department Purchase departments

 This type of departmentation is made by the large-scale business unit. A single business unit may manufacture and sell different types of products. Then, each type of product or service is allocated to a separate department.

 Product manager RefrigeratorFansIronStoves

 This method of departmentation may be suitable for a business unit which is wholly dispersed. The business activities are grouped in area –wise and each area is in charge of a single person. The local persons are appointed as salesmen in each area. It will help the business unit to increase the sales. The reason that the local person is familiar with the local culture and preferences of the customers.

. General manager NorthEast WestSouth

 This type of departmentation is preferred when the various needs of customers are different in nature. For example, a bank or a financial institution may divide its loan section into number of head and assign them to various departments, such as loan to businessmen, farmers, professionals and so on.

. General manager LoanPaymentDeposits

 This type of departmentation is followed when the production activities are carried on in many places. For example, a textile mill has many departments such as Ginning, Spinning, Weaving,Dyeing and printing, Packing and Sales. Each section will be in charge of separate specialized persons.

. General manager Ginning Spinning Weaving

 The organization in which the authority is only in hands of some important people (officers) and these people made the important decisions of the organization this process is called centralization and the organization is called centralized organization.

 The organization in which the authority is expanded completely and the decision is taken more than the specific people this process is called decentralization and the organization is called decentralized organization.

CENTRALIZATION 1.In centralization the control is in the hand of few peoples. 2.In centralization process the decisions are taken by the top management. 3.In centralization process there is a drawback of weak potential. DECENTRALIZATION 1.In decentralization the control is in the hands of more than few peoples. 2. In decentralization process the decisions are taken by the complete organization. 3. In decentralization process there is a drawback of weak control.