Organization

Organization

What Is An Organization? 

An Organization Defined 

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A deliberate arrangement of people to accomplish some specific purpose (that individuals independently could not accomplish alone).

Common Characteristics of Organizations   

Have a distinct purpose (goal) Composed of people Have a deliberate structure

Organization structure The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups.

Guidelines for Effective  Organization The line of authority should be clearly stated.  

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Each person should report to only one boss. The authority & responsibility should be clearly stated The no. of levels of authority should be as few as possible The organization should be simple and flexible. The line function & the staff function should be kept separate. The span of control should be reasonable and well established.

Span of Control The number of subordinates a manager can efficiently and effectively direct. Concept: Wider spans of management increase organizational efficiency. Narrow Span Drawbacks: • Expense of additional layers of management. • Increased complexity of vertical communication. • Encouragement of overly tight supervision and discouragement of employee autonomy.

Centralization: Definition: The process of transferring and assigning decision-making

authority to higher levels of an organizational hierarchy. In a centralized organization, the decision-making has been moved to higher levels or tiers of the organization, such as a head office, or a corporate center. Knowledge, information and ideas are concentrated at the top, and decisions are cascaded down the organization. The span of control of top managers is relatively broad, and there are relatively many tiers in the organization.

Decentralization:

Definition: The process of transferring and assigning decision-making

authority to lower levels of an organizational hierarchy. In a decentralized organization, the decision-making has been moved to lower levels or tiers of the organization, such as divisions, branches, departments or subsidiaries. Knowledge, information and ideas are flowing from the bottom to the top of the organization. The span of control of top managers is relatively small, and there are relatively few tiers in the organization, because there is more autonomy in the lower ranks.

 Centralizati

on:  

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Facilitates coordination Ensure decisions consistent with organization’s objectives Top-level managers have means to bring about organizational change Avoids duplication of activities

 Decentraliza

tion: 

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Overburdened top management Motivational research favors decentralization Permits greater flexibility Can result in better decisions Can increase control

Bureaucracy 

Bureaucracy is the structure and set of regulation in place to control activity, usually in large organizations and government. It is characterized by rule following procedures, formal division of responsibility, hierarchy and impersonal relationships.

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Bureaucracy is a concept in sociology and political science referring to the way that the administrative execution and enforcement of legal rules are socially organized.

Key characteristics of Bureaucracy 

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Specification of jobs with detailed rights, obligations, responsibilities, scope of authority. System of supervision and subordination. Unity of Command. Extensive use of written documents. Training in job requirements and skills. Application of consistent and complete rules (company manual). Assign work and hire personnel based on competence and experience.

Advantages of Bureaucracy Precision.     

Speed. Clarity in communication. Reduction of friction. Reduction of personal costs.

Disadvantages of Bureaucracy   

Multiplication of administrative functions Many levels of management Much paperwork, routine and "red tape“ (The collection or sequence of

forms and procedures required to gain bureaucratic approval for something, especially when complex and time-consuming. ) 

Impersonal officials working to a fixed routine without necessarily exercising intelligent judgment.

Mechanistic Organizations Mechanistic organizations are often appropriate in stable environments and for routine tasks and technologies. In some ways similar to bureaucratic structures, mechanistic organizations have clear, well-defined, centralized, vertical hierarchies of command, authority, and control. Efficiency and predictability are emphasized through specialization, standardization, and formalization. This results in rigidly defined jobs, technologies, and processes. The term mechanistic suggests that organizational structures, processes, and roles are like a machine in which each part of the organization does what it is designed to do.

Organic Organization The term "organic" suggests that, like living things, organizations change their structures, roles, and processes to respond and adapt to their environments. Organic structures are appropriate in unstable, turbulent, unpredictable environments and for non-routine tasks and technologies. For organizations coping with such uncertainty, finding appropriate, effective, and timely responses to environmental challenges is of critical importance. Organic organizations are characterized by:  Decentralization  flexible, broadly defined jobs  interdependence among employees and units  multi-directional communication  employee initiative  relatively few and broadly defined rules, regulations, procedures, and processes  employee participation in problem solving and decision making, often interactively and in groups

Design Configuration Mintzberg defined organisational structure as "the sum total of the ways in which it divides its labour into distinct tasks and then achieves coordination among them". Each configuration contains six components: 

Operating core: the people directly related to the production of services or products;

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Strategic apex: serves the needs of those people who control the organisation;

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Middle line: the managers who connect the strategic apex with the operating core;

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Techno-structure: the analysts who design, plan, change or train the operating core;

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Support staff: the specialists who provide support to the organisation outside of the operating core's activities;

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Ideology: the traditions and beliefs that make the organisation unique.