ORGANIZATION

1. Koontz & o’Donnell, “ The establishment of authority relationship with provision or coordination between them, both vertically & horizontally in the enterprises structure. L.H. Haney,“Oragnisation is a harmonious replacement of speclized part for the accomplishment of some common purpose or purposes. ORGANIZATION

2. There are two Concepts of organization 1. Static Concept 2. Dynamic Concept 1. Static Concept: Under static concept the terns 'organization' is used as a structure. are emit) or a network of specified relationship. In this sense, organization is a group of people bouts4 together in a formal relationship to achieve common objectives. It lass emphasis on position and not on individuals. 2. Dynamic Concept: Under dynatnic concept, the term 'organization' is used as a process of an ongoing activity. In this sense, organization is a process of organizing work, people and the systems. It is concerned with the process of determining activities which may be necessary for achieving an objective and arranging than in suitable groups sons to be assigned to individuals. It considers organization as an open adoptive system and not as a closed system Dynamic concept lays emphasis on individuals and considers organization as a continuous process Concepts of Organisation

3. CHARACTERISTICS OF ORGANIZATION • DIVISION OF WORK: Organisation deals with the whole task of business. The total work of the enterprise is divided into activities and functions. Various activities arc assigned to different persons for their efficient accomplishment. This brings in division of labour. It is not that one person cannot carry our, many functions but specialization in different activities is necessary to improve one's efficiency

4. Co-Ordination: Co-ordination of various activities is as essential as their division It helps in integrating and harmonising various activities Co-ordination also avoids duplications and delays. • Common Objectives: An organizational structure is a means towards the achievement of enterprise goals. The goals of various segments lead to the achievement of major business goals. The organizational structure should build around common and clear cut objectives. This will help in their proper accomplishment. • Co-Operative Relationship: An organization creates co-operative relationship among various members of the group. An organization cannot be constituted by one person It requires at least two or more persons. Organization is a system which helps in creating meaningful relationship among persons. • Well defined Authority Responsibility Relationships: An organization consists of various positions arranged in a hierarchy with well defined authority anti responsibility. CHARACTERISTICS OF ORGANIZATION

5. Business Organization- An Art • An art is a system or rules for the attainment of a given end. T L. Massie says, "In any activity that is classed as an art the emphasis is on applying skills mid knowledge and accomplishing an end through deliberate effort." In the words of G.R. Terry, art is "bringing about of a desired result through application of skill." C I Barnard has remarked, "The function of an art is to accomplish concrete ends, effectual, produce situations that would not come about without the deliberate effort to secure them." • Art is. thus, concerned with the application of knowledge and skills.(In this sense, business organization is an as one has to use his skill and knowledge in solving many complicated problems of business to achieve the enterprise objectives. But with the passage of time, it was realized that the principles of business organization can be codified and communicated. Which gave birth to business organization as a science

6. The word science literally means knowledge. In the words of Keynes, "science is a systematized body of knowledge which establishes relationship between Cause and effect "Science has three basic features (i) it is a systematized body of knowledge that uses scientific methods for observation, (ii) the principles are evolved on the basis of continued observation. and (iii) the principles are exact and have universal applicability without any limitation. Business Organization is viewed as a science as it is an organized body of knowledge built up by management practitioners, thinkers and philosophers over a period of years. But it must be noted that organization is a science but unlike Physics. Chemistry and Biology, it is not an exact or accurate science. The principles of organization cannot be considered as fundamental truths. At times, they may not bring desired results and may not have universal applicability. Business Organisation- A Science

7. Formal & informal organization

8. Principle of Objective: The enterprise should set up certain aims for the achievement of which various departments should work. A common goals so devised for the business as a whole and the organization is set up to achieve that goal. • Principle of specialization The organization should be set up in such a way that every individual should be assigned a duty according to his skill and qualification. The person should continue the same work so that he specializes in his work. This helps in increasing production in the concern • Principles of Co-ordination: The co-ordination of different activities is an important principle of the organization. There should be some agency to co- ordinate the activities of various departments. In the absence of co-ordination there is a possibility of setting up different goals by different departments. • Principles of Definition: The scope of authority and responsibility should be clearly defined tier) person should know his work with definiteness. If the duties are not clearly assigned, then it sill not be possible to fix responsibility also Everybody's responsibility will become nobody's responsibility • Span of Control: Span of control means how many subordinates can be supervised by a supervisor. The number of subordinates should be such that the supervisor should be able to control their work effectively Moreover, the work in be supervised should be of the same nature If the wan of control is disproportionate, it is bound to affect the efficiency of the workers because of s communication with the supervisors Principles of Organization

9. Principle of Balance: The principle means that assignment of work should be such that every person should he given only that much work which he can perform well. • Principle of Continuity: The organization should be amendable according to the changing situations Everyday there are changes in methods of production and marketing systems. The organization should be dynamic and not static. • Principle of Uniformity: The organization should provide for the distribution of work in such a manner dun the uniformity is maintained. Each officer should be incharge of his respective area so as to avoid dual subordination and conflicts • Principle of Unity of Command: There should be n unity of command in the organisation. A person should he answerable to one boss only. If a person is under the control of more than one person Principles of Organization

10. PRINCIPLES OF ORGANIZATION • • PRINCIPLE OF EXCEPTION:This principle states that top management should interfere only then something goes wrong. If the things arc done as per plans then there is no need for the ignite/Terence of top management • • PRINCIPLE OF SIMPLICITY:The organizational structure should be simple so that it is easily understood by. each and every person The authority, responsibility mid position of every person should be made clear so that there is no confusion about these things. • • PRINCIPLE OF EFFICIENCY:The organization should be able to achieve enterprise objectives at minimum cast. The standards of costs and revenue are pm-determined and performance should. • • SCALER PRINCIPLE:This principle refers to the vertical placement of supervisors starting from rep and going to the lower level. The scalar chain is a pre-requisite for effective and efficient organization.

11. Able Organisers.Success of an organization depends upon the competence and calibre of those who arc at the helm of -affairs. The entrepreneur should understand all aspects of the business so that he may properly organise various aspects of the concerti; • Sound Business Politics. The management should be clear about the objective to be achieved Various policies should be aimed to achieve the business goals. • Proper Supervision and Control: The success of an organization will depend upon the effective supervision and control. If the activities of different individuals are not properly controlled, then business goals will not be achieved .A corrective action is necessary if the performance is less than the goal • Co-Operation and Co-Ordination It is necessary to get the co-operation of everybody in the organization to make it a success The goals of the business arc Common and everybody should try to achieve them in their respective fields There should be sonic agency to co-ordinate the activities of various departments REQUISITES OF AN EFFICIENT BUSINESS ORGANISATION

12. Efficient Personal Organization: Management of personnel is an important aspect of organization. Proper personnel organization is necessary for enabling all persons to optimize their contribution towards realizing the corporate objecting Personnel organization includes recruitment training, job evaluation, merit rating and fixing of remuneration

13. Helps in Optimum Utilization of Technological Innovations: The test of a good organization is its success in adjusting to the new and changing situation. The technological improvements are taking place every time and management is required to make use of them to exist in competitive world. The organization should be flexible to microporate all new requirements. • Helps in Administration: An organization provides sound foundation for effective managerial control. Various managerial function will be effectively performed with the help of an organization. The functions like co-ordination and control require a proper division of various functions and their assignment to suitable persons. • Promotes Growth and Diversification: Area and activities of a business grow if it has a well knil organization. There will be a need for employing more persons whenever expansion and diversification takes place. A flexible organizational structure will divide and sub divides the activities in such a way that the activities of different segments become complementary. This will bring an automatic co ordination in the business • Easy Co-Ordination Every enterprise has a number of departments and sections. These are assigned different duties for achieving business objectives. There is a need for co-coordinating the working of various segments. IMPORTANCE OF ORGANIZATION

14. Training and Development of personnel: A good organization offers an opportunity for the training and development of personnel. A clearly defined authority provides a scope for the use of talent. There will be a sufficient scope to try new ideas in improving the working of the organization. • Encourages Initiative: A good organizational structure will provide sufficient scope for taking initiative. Persons are allowed to try new ideas for improving upon their work. The politics and procedures are laid down for the guidance of managerial personnel. But within these limits people are given freedom to show their talent. • Better Human Relations: Human relations improve in a good organizational set up. An origination consists of human beings and their satisfaction will help in improving human relations. A clearly defined work, authority, responsibility, accountability will enable individuals to work in a free atmosphere.

15. The organization aims at the achievement of the 'following (i) To Help Management: The organization helps management to have a control over various business functions. The work is divided properly and control censers are established. The authority is delegated and responsibilities are fixed. It helps management to have a co-coordinated administration. (ii) To Increase Production: The duties are assigned according to the principle of division of labour. The efficient system of organization encourages every employee to make hi.; best contribution in raising output. The increase in output and control of wasteful expenditure helps to decrease the cost of production. The profitability of the concern will also go up. (iii) Co-Operation of Employees: The organizational structure will succeeds only if employees co-operate with others. The manager introduces various incentives schemes and gives monetary and other benefits to the employees so that they work in a team spirit. OBJECTIVES OF ORGANISATION

16. The following steps are necessary for setting-up proper organizational structure in the business. • Division of Work. The job is divided into various functions. These functions may be called production', financing. marketing, staffing, etc. All business activities arc divided and subdivided into various categories. The purpose of the division is to specialise individuals into different roles. This also helps in increasing the efficiency of employees. • Classification of Activities. The activities arc classified under various categories All similar activities arc grouped together The activities relating to different functions arc covered under different departments. STEPS IN ORGANIZATION

17. • APPOINTING SUITABLE PERSONS:When activities are divided into different functions, the next step will be to appoint suitable persons for various jobs. Experts arc appointed as heads of different departments Persons are employed for all types of roles. • • Delegation of Authority:A person will be able to perform this duty only when he is given adequate authority required for that job. If the work is assigned without delegating authority. It will be meaningless. The top management should delegate authority to lower levels of management STEP (1) IDENTIFICATIONAL AN DIVISION OF WORK DEPARTMENTALISATION STEP (2) ASSIGNING OF DUTIES STEP (3) STEP (4) ESTABLISHING REPORTING RELATIONSHIP

18. Grouping or Departmentation: was also considered essential for making the functions effective. Since this theory revolves around structure it is also called “ structural theory of organization.” • Pillars of Organisation Theory:According to classical writers, the organizations theory of built around four keys pillars: division of work, scalar and functional processes, structure and span of control. • Division of labour • Scalar and Functional Process • Structure • Span of Control CLASSICAL ORGANZATION THEORY

19. Neo-classical organization theory: The classical theory of organization focused main attention on physiological and mechanical variables of organizational functions.. New classical approach is contained in two points. • The main propositions is of neo- classical theory are given as follows: • The Organisation in general is a social system composed of numerous interacting parts • Human being is independent and his behaviour can be predicted in terms of social factors at work Appraisal of Classical Theory

20. System Approach • This approach studies the organization in its totally. The mutually depended variables are property analyzed. Both internal and external variables are studied in analyzing the nature of organization. • Technical sub system concerned with the work that gets done • Supportive sub system of procurement, disposal and intuitional relations • Maintenance of sub systems\ for trying people into their functional roles • Adaptive sub systems concerned with organizational change and Modern organization Theory

21. According to BOW DITCH and BUONO “ Organizational culture is connected with the nature of beliefs and expectations about organizational life, while climate is an indicator of whether these beliefs and expectations are being fulfilled OrganiationalClimate • Characterstics of Organisational Climate • General Perception. • Abstract and Intangible Concept: • Unique and District Identity: • Enduring Quality • Multi Dimensional Concept

22. FACTORS INFLUENCING ORGANIZATIONAL CLIMATE • ORGANISATIONAL STRUCTURE, INDIVIDUAL RESPONSIBILITY, RISK AND RISK TAKING: • WARMTH AND SUPPORT, TOLERANCE AND CONFLICT: IMPACT OF ORGANIZATIONAL CLIMATE • Organizational climate influences to a great extent the performance of the employees because it has a major impact on motivation and job satisfaction of individual employees.

23. The organizational climate can affect the human behaviour in the organization through an impact on their performance, satisfaction and attitudes. There are four mechanisms by which climate affec5trs the behaviour of the employees. 1. Constraint System. 2. Evaluation of Self and Others. 3. By Acting as Stimuli. Organizational factors can influence human 4. By Helping the Individual to Form a Perception. Good organizational climate is instrumental to higher employee satisfaction,.

24. Dominant Orientation • Inter- Personal Relationships • Individual Autonomy • Organizational Control System • Organizational Structure Developing a Sound Organsational Climate • Effective Communication System: There should be a two way communication in the organization so that the employees know what is going on and react to it. The manager can modify his decision on the basis of feedback received • Concern for people: The management should be interested in the human resources development. It should work for the welfare of employees and an improvement in their working conditions • Change in Politics, Procedures and Rules: The organizational climate can also be changed by making changes in the politics, procedures and rules. It is a time consuming process but the changes will also be long lasting, if the workers see the changes in politics, procedures and rules as favourable to them. Dimensions of Organizational Climate

25. Full and free communication regardless of rank and power • A Reliance on consensus rather than on the more customary forms of concretion or compromise to manage conflict • The idea that influence is based on technical competence and knowledge than on the vagaries of personal whims or prerogative of power. Participation and Organisational Climate 1. Mental and Emotional Involment: 2. Acceptance of Responsibility: 3. Motivation to Contribute: