Organizational Systems : Nature of Organisation:
The nature of organisation can be viewed
in the following ways:
(1)
Organisation as a Process:
As a process, organisation is an executive
function. it becomes a managerial function involving the following activities:
(i) Determining activities necessary for
the accomplishment of the business objectives,
(ii) Division of work,
(iii) Grouping of inter-related
activities,
(iv) Assigning duties to persons with
requisite competence,
(v) Delegating authority, and
(vi) Co-ordinating the efforts of
different persons and groups.
When we consider organisation as a
process, it becomes the function of every manager. Organising is a continuous process
and goes on throughout the life-time of an enterprise. Whenever there is a
change in the circumstances or material change in situation, new type of
activities springs up.
So, there is a need for constant review
and re-assignment of duties. Right persons have to be recruited and necessary
training imparted to make them competent to handle the jobs.
The process of organisation thus,
involves dividing the work in a rational way and integrating the activities
with work situations and personnel. It also represents humanistic view of the
enterprise since it is the people who are uppermost in the process of
integration of activities. Continuous review and adjustment makes it dynamic as
well.
(2) Organisation
as a structure (or, framework of relationships):
As a structure, organisation is a network
of internal authority and responsibility relationships. It is the framework of
relationships of persons operating at various levels to accomplish common
objectives. An organisation structure is a systematic combination of people,
functions and physical facilities.
It constitutes a formal structure with
definite authority and clear responsibility. It has to be first designed for
determining the channel of communication and flow of authority and
responsibility. For this, different types of analysis have to be done. Peter F
Drucker suggests following three types of analysis:
(i) Activities analysis
(ii) Decision analysis
(iii) Relations analysis
A hierarchy has to be built-up i.e., a
hierarchy of positions with clearly defined authority and responsibility. The
accountability of each functionary has to be specified. Therefore, it has to be
put into practice. In a way, organisation can be called a system as well.
The main emphasis here is on
relationships or structure rather than on persons. The structure once built is
not liable to change so soon. This concept of organisation is, thus, a static
one. It is also called classical concept. Organisation charts are prepared
depicting the relationship of different persons.
In an organisation structure, both formal
and informal organisations take shape. The former is a pre-planned one and
defined by the executive action. The latter is a spontaneous formation, being
laid down by the common sentiments, interactions and other interrelated
attributes of the people in the organisation. Both formal and informal
organisations, thus, have structure.
3. Organisation as a Social System:
From sociology, we learn that
organisations are social systems; consequently activities there in are governed
by social laws as well as psychological laws. Just as people have psychological
needs, they also have social roles and status. Their behaviour is influenced by
their group as well as their individual drives.
There are two types of social systems
exist side by side in organisation. One is formal system and other is the
informal social system. The existence of social system implies that the
organisational environment is one of the dynamic changes rather than a static
set of relations. All parts of the system are interdependent and subject to
influence by any other part.
4. Formed on the Basis of Mutual Interest:
Mutual interest is represented by the statement
“Organisation need people, and also need organisation.” Organisations have a
human purpose. They are formed and maintained on the basis of some mutuality of
interest among the participants. People see organizations as a means to help
them reach then goals, while organisation needs people to help reach
organisational objectives.
If
mutuality is lacking, it make no sense to try to assemble a group and develop
co-operation, because there is no common base on which to build.
5. Organisation facilitates co-ordination of
organisational activities and tasks.
6. Organisation states the pattern of formal
relationships and duties among people at different positions in the
organisation.
7. In elaborates the hierarchical relationship among
different levels of management within the organisation.
8. Organisation facilitates the implementation of
policies, practices, procedures, standards evaluation systems etc. that guide
the activities and relationship among people in the organisation.
9. Organisation sates the activities and tasks
assigned to different departments and people in the organisation.
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