Q 1 What is Organization?

Organization is a systematic arrangement of people to accomplish specific purpose. Every organization is

composed of three elements i.e. people, goals and system. Each organization has a distinct purpose. This
purpose is expressed as goals generally. Each organization has a distinct purpose. This purpose is
expressed as goals generally. Each organization is composed of people. Each organization has a
systematic structure that defines the limit of each member. Some members are managers and some are
operatives.
All organizations have a management structure that determines relationships between the different
activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems--they affect and are affected by their environment.

Perspectives of an Organization:
 Organizations are not material, substantive entities with objective properties. Organizations are
not ‘objects.’ That idea is a trap in which our thing oriented language has caught us.
Organizations are sets of interlocked organizing processes that create order.
 The organization environment is, in part enacted by the organization itself, not just given in a
predetermined, independent variable sense. Some of those enactments are random, and some
contradict the retained order.
 Rational, goal directed instrumental behavior plays a relatively unimportant role in organizing.
Instead, organizing is treated as an evolutionary process of variation and selective retention.
Rationales for behavior are developed retrospectively, after the behavior has been completed
and is available for ‘bracketing’ and sense making.
 Organizing is primarily an interpersonal process. Realities are socially constructed. Therefore
communication and the use of language are important processes.
 Organizations are creative, problem solving systems, not just performing systems. They have to
figure things out not just execute behaviors.

Evolution of Organization Theory & Design: Organizations are moldable, more or less, as their size and
structure allows. The initial step into understanding them is to study their features that describe their
design characteristics. In this way you can understand organizations much like you would understand an
individual’s personality and physical abilities.

Organizations have two interdependent features: structural dimensions and contingency factors.

Structural dimensions describe those internal organizational characteristics than help define and
measure that which exist by comparison with other organizations. For instance, a structural dimension
would be “size” of, employees, sales, volume, etc.

On the other hand, Contingency factors embrace larger elements that inspire structural dimensions.
They are products of the organizational landscape that effects and shapes structural dimensions.

For instance, the extent in which an organization is centralized could directly affect an organizations size
by limiting or encouraging their manufacturing global presence.
In order to understand organizations and assess their abilities, it is important to study structural
dimensions and contingency factors in detail. Both represent the organization as well as their business
landscape.