Tuesday, 11 May 2021

Organization - Definition, Characteristics & Process (IEM Mgt 11May 2021)

Organizational Management 

Definition of Organization: An organization is a group of people who work together for achieving organizational goals, like an association, a charity, a union, or a corporation.

Organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the organizational goals.

 

Characteristics of organization:

 

1. Division of Work:

Organization deals with the whole task of business. The total work of the enterprise is divided into activities and functions. Various activities are assigned to different persons for their efficient accomplishment.

 

2. Co-Ordination:

Co-ordination helps in integrating and harmonizing various activities. Co-ordination also avoids duplications and delays. Various functions in an organization depend upon one another and the performance of one influence the other. Unless all of them are properly co­ordinated, the performance of all segments is adversely affected.

 

3. Common Objectives:

All organizational structure is a means towards the achievement of business goals.

 

4. Co-operative Relationship:

An organization creates co-operative relationship among various members of the group.

 

5. Well-Defined Authority-Responsibility Relationships:

An organization consists of various positions arranged in a hierarchy with well-defined authority and responsibility.

 

Steps Involved in the Process of Organizing an Organization

Main steps involved in the process of organizing an Organization are: 1. Identification and Division of Work 2. Departmentalization 3. Assignment of Duties 4. Establishing Reporting Relationships

 

1. Identification and Division of Work:

The process of organizing starts with the identification and division of work. The whole work is to be divided into manageable activities so that duplication is avoided and work can be completed as per predetermined goals.

For example, the work in a bank may be divided into four simple activities receiving cash, disbursing cash, processing of loan applications and sanctioning of loans.

 

2. Departmentalization:

Departmentalization refers to the process of grouping the activities of similar nature under same departments. This facilitates specialization and coordination in the organization.

 

3. Assignment of Duties:

Once the departments have been formed; the next step is to assign the work to the employees according to their skills and competencies.

 

4. Establishing Reporting Relationships:

Establishing responsibility relationships in an organization structure implies the allocation of authority and responsibility among employees of the enterprise in such a way that each person should know who is responsible to whom and for what.

This step involves providing information to the workers regarding who they will be receiving orders from and who they will be reporting to.

 

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