Friday, 23 April 2021

Nature of Organisation (MIS 23.04.2021)

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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