the nature of organization

Sasmira College of Management 1

The Nature of Organization


Organization

“An identified group of people contributing their efforts towards the attainment of goal is called an organization”


Organizational structure “Explicit and implicit institutional rules and policies designed to

provide a structure where various work roles and responsibilities are delegated, controlled and coordinated.”

• Features of good organization structure

Clear line of authority. Application of ultimate responsibility. Minimum managerial levels. Unity of direction. Proper emphasis on staff activities. Simplicity. Flexibility.

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Departmentation

“Departmentation is process of dividing the large functional organization into small & flexible & administrative unit.”

Types of Departmentation Departmentation by Product Departmentation by Function Departmentation by Region or Territory Departmentation by Customer Departmentation by Process


Line organization structure

Similar activities are performed at a particular level

Each group activities is self contained unit & able to perform the assigned activities without assistance of others

Foramen A

Foramen B Foramen C Foramen D

Production Manager

workers workers workers workers


Departmental Line Organization Structure Entire activities are divided into different

department on the basis of similarity of activities

All department are controlled by departmental head

Foramen A

Spinning

Foramen B

weaving

Foramen Dfinishing

Production Manager

workers workers workers workers

Foramen CDyeing


Characteristics of Line Organization structure 1. Lines of authority & instruction are vertical2. The unity of command is maintained in straight &

unbroken line3. All person at the same level of organization are

independent of each other

Advantages4. Simplicity5. Discipline6. Prompt decision7. Orderly communication8. Easy supervision & control9. Economical

Disadvantages10. Lack of specialization 11. Autocratic approach12. Problems of co-ordination13. Not suitable for large scale organization


Line & staff Organization Structure

It structures refers to a pattern in which staff specialist advice managers to perform their duties.

General ManagerSecretary Public relation

Manager finance Manager HR

Manager Production Manager Marketing

Production eng Sales officer

foreman Sales supervisor

worker salesman


Authority and Decentralization


Authority

It is the formal right given to a person to command or to give order to perform a certain task.

Authority is given to a manager to achieve the objectives of the organization.

It is the right to get the things done through others.


Decentralization

Every organization has to decide as to how much decision – making authority should be centralized, in hands of the chief executive and how much should be distributed among the managers at lower levels.

The Greater is the number of decisions made at lower levels.


Implication of Authority

Expert authority: achieved through formal mechanisms such as certifications or education. Project Managers have several formal certifications available from global certification bodies such as the Project Management Professional.

Lead person takes the decision.Work burden is on subordinates.


Implication of Decentralization

Less burden on the lead person as in the of authority

Subordinates get a change to decide and act independently

Co-ordination to some extend is difficult to maintain


CO-ORDINATIONMEANING:

Coordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.

Definition: According to Mooney and Reelay, “Coordination is orderly arrangement of group effort

s to provide unity of action in the pursuit of common goals”.


Why Co-ordination ?According to management experts coordination is necessary because:

Coordination is the Essence of Management." I.e. Coordination affects all the functions of management, viz., Planning, Organizing, Staffing, etc. Coordination is a function of management.

Coordination is a principle of management, and all other principles are included in this one principle, i.e. Co ordination is the "Mother Principle".


Structure of co-ordination


Characteristics of coordination

Coordination is not an distinct function but the very essence of management .

Coordination is the basic responsibility of management and it can be achieved through managerial

functions. Coordination does not arise spontaneously or by force. Heart of coordination is ”unity of action ” Coordination is dynamic process. coordination is required in a group

efforts not in individual efforts. Coordination has a common purpose of

getting organizational objectives accomplished.


Organization Human factors

Meaning: Human factors and ergonomics (HF&E), also known as comfort design, functional design, and user-friendly systems, is the practice of designing products, systems or processes to take proper account of the interaction between them and the people who use them.

The field has seen contributions from numerous disciplines, such as psychology, engineering, biomechanics, industrial design, physiology and anthropometry.


Importance of Human Factor in coordination: Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. An organization’s performance and productivity are directly proportional to the quantity and quality of its human resources. Human factor is the most valuable asset of an organization, and not the money or physical equipment.


Effective organization structure

“An organizational structure defines how activities such as

task allocation, coordination and supervision are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.”


Planning for the Ideal

The search for an ideal organization to reflect enterprise goals under given circumstances is impetus to planning. The ultimate form established, like all other plans, seldom remains unchanged, and continuous remolding of the ideal plan is normally necessary.

An ideal organization plan constitutes a standard, and by comparing the present structure with it, enterprise leaders know what changes should be made when possible.


Advantages of Organization Planning

Planning the organization structure helps determine future personnel need and required training programs.

Furthermore organization planning can disclose

weakness such as, duplication of effort, unclear lines of authority, and overlong lines of communication.


Global Organizing

“Global organization means organization with an international membership ,scope or presence.”

Meaning of Global Organizing in Business“It is an essential activity that every decision

maker must perform to keep pace in today’s world.”


Characteristics of Global Organizing

Overseas experience Deep Self-Awareness Sensitivity to cultural diversity Humility Lifelong curiosity Well-spoken Good negotiator Presence


Roles of Global Organizing

Collecting statistical informationAnalyzing the trends in the variablesMaking comparative study and disseminate the

information to all other countries

Types Multinational corporationTransnational corporationBorderless organization


GoalsProfitabilityCustomer serviceRetentionEfficiencyGrowth


Motivation

An inferred process within an animal or an individual that causes that organism to move towards a goal.

Relie

f

Need, Drive

Instrumental

Goal


Motivational Techniques• Leads them• Real examples are quicker than advice• Way to influencing people• Appeal to benefits• Can motivate• Mutual benefits to both of you• Appeal to emotions• People act quickly to emotions• Positive manner• Sustained by repeated inputs• Appeal to needs & wants• basic needs satisfaction• Creative expression, recognition & challenges & love• Appeal to expertise• Abilities enhance his self-worth• Put best effort to seek approval


Goal-Setting Goals are desired result, purpose, or objective that one

strives to attain

Goals are:SpecificMeasurableAttainableRelevant/RealisticTime-Oriented.


Types of GoalsShort-term

A goal that can be achieved in a relative short period of time.

Ex: To complete the course.Long-term

A goal that takes a long period of time to achieve.

Ex: Great success in career.


Leadership

"Leadership is a function of knowing yourself, having a vision that is well communicated, building trust among colleagues, and taking effective action to realize your own leadership potential."


Types of Leadership

Autocratic leadership.Democratic leadership.Laissez – faire leadership.Paternalistic leadership.


Why Is Leadership Important ?

“Generally people think companies compete by means of their products but they probably compete more by means of their leaders and their products. Better leaders develop better employees and the two together develop better products.”


Why Do We Need Leaders ?

Leadership is an attitude.Leadership encourages us to realize our real

potential.Leaders make us confident.Leaders invoke the sense of responsibilities.Leaders love their subordinates grow.


Group decision making

“Group decision-making is a situation faced when individuals collectively make a choice from the alternatives before them. The decision is then no longer attributable to any single individual who is a member of the group.”


Steps to rational decision making model

Define the problem. Identify the criteria. Allocate weights to the criteria. Develop alternatives. Evaluate the alternatives. Select the best alternatives.


Advantages

Generates more complete information & knowledge

Offers increased diversity of views

Generates higher quality decisions

Leads to increased acceptance of a solution

Disadvantages

More time consuming Conformity pressures in

groups Discussion can be

dominated by one or a few members

Decision suffer from ambiguous responsibility


Communication What is communication ?

It is a process of exchanging Ideas Thoughts Feelings Emotions Through Speech Signals Writing Behavior


What is organizational communication?

• “Organizational communication is the process by which activities of an organization are collected and coordinated to reach the goals of both individuals and the organization”.


SENDER

Communication Process

Communication is the process of sending and receiving information among people.

Medium

RECEIVER

Feedback

receiversender

Use of channel to transmit the message


Types of Business communication Internal communication: This is the communication that

takes place within an organization. In addition to the usual face to face, telephone, fax or mail; modern organizations may use technology to communicate internally. Technology may be used for e-mails or a linked internal communication.

External communication: Communication between the organization and those outside the organization. The communicate with other businesses can be through telephone, fax ,internet etc.

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The Structure and mode of organizational communication

Horizontal / Lateral Communication

The exchanges between and among agencies and personnel on the same level of the organization chart.Horizontal communication aims at:

– Task coordination: (Inter Personal & Departmental)– Problem solving: (Discussion & Brainstorming) – Information sharing: (Inter Personal & Departmental)– Conflict resolution: (Inter Personal & Departmental)

Vertical Communication

» Upward Communication» Downward Communication

Diagonal CommunicationSasmira College of Management

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Upward communication

Upward communication -the process whereby the ideas, feelings, and perceptions of lower-level employee are communicated to those at higher levels in the organization.

Functions:

It provides management with needed information for decision making.

It helps employees relieve the pressures and frustrations of the work situation.

It enhances employees’ sense of participation in the enterprise.

It serves as a measure of the effectiveness of downward communication.Sasmira College of Management

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Downward communication

Such communication is initiated by the organization’s upper management and then filters downward through the “chain of command”.

People are limited as to the amount of information they can effectively absorb and react to.

Therefore, management must, of necessity, restrict what it communicates to subordinates.

Organization implies some restriction of communication. Without restrictions on communication, any organizational member could be buried under an avalanche of incoming messages from all the other members.

Sasmira College of Management

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Diagonal Communication

This occurs when communication occurs between workers in a different section of the organization where one worker is on a higher level.

For example diagonal communication will occur when a department manager converses with an employee in another department.

It allows cross communication between departments

Sasmira College of Management


Why Global Leading ? Organizations grow increasingly more global NOT less

so. Creating the right kind of organization to meet the

global economy is key. Talented managers with global mindset are not

enough – it requires structures, processes and practices.


Objectives

Provide state-of-art knowledge on global mindset .Offer inspiration from “company-specific” global

mindset practices. Assist in clarifying the potential contribution of

global mindset in your own organizational context . Assist in identifying enablers and barriers that

either contribute to or hinder the development of global mindset in own organization.


Why Global Mindset ?

• ”Global mindset is being comfortable with being uncomfortable in uncomfortable places.”


Benefits of Global Mindset

The content and processes of multinational firms’ sense making systems can be a distinct competitive advantage or disadvantage.

“A grasp of and insight into the needs of the local market, it is also able to build cognitive bridges across these needs and between these needs and the company’s own global experience and capabilities.


Thank You