ASSIGNMENT

Unit 6: Fundamental of Organising

1. Define Organising.

Stephen P. Robbins and Mary Coulter (2002) defined organizing as ‘determining what
tasks are to be done, who is to do them, how the tasks are to be grouped, who reports
to whom, and where decisions are to be made’.

L.A. Allen (1958), on the other hand, defined organizing as ‘the process of identifying
and grouping the work to be performed, defining and delegating responsibility and
authority, and establishing relationships for the purpose of enabling people to work
most effectively together in accomplishing objectives’.

An organization is essentially a formal structure of people that is set up to achieve

some defined goals. A business unit or a manufacturing unit may be termed as a
business organization or a manufacturing organization because these are essentially
formal structures of persons who strive to achieve some defined goals. It is evident
from the definitions that different authorities have defined the word organizing in
different ways.

2. What is difference between modern and traditional organisation?

Traditional organization represent the organizational structure in a business is

hierarchical, meaning power flows vertically and upward, and employees are
departmentalized. All employees follow a chain of command. Such as a manager is the
chief coordinator of all department. Each department has a head who report to the
manager. Like the military system-very hierarchical, organized, disciplined. Every
department has its own rules and regulations as well as and every employee has own job
description and accountability to his superior. There’s strictly follow their own business
strategy that’s set in annual economic year. All the goal achievement plan are set before
and difficult to change. Always traditional organization is fixed and rigid.

Modern Organization means a boundaryless organization which are networking

together and collaborating more than ever before. They are well-suited for rapid
innovation and therefore ideal for companies in the growing technology industry.
Its main concept is to diversify its activities and connectivity as a result it can
 accept new challenges and can set a goal frequently. Modern style of management
largely depends on soft skills – consensus building, relationships, listening, and
understanding, taking the team along with you willingly than dragging them along
with you.

3. What are the main points of disagreement between modern and traditional
organisation?

The main points of disagreement:

• Stability: People believe that traditional organizations are stable in their

activities and progress. On the other hand modern one is more dynamic
with its multiple business strategy. They need multiple progress and
constant changes.

• Flexibility: Modern Organizations are always flexible to change their

workflow, focuses as well as connectivity. There the organization is need to
update their competitive advantages and the employees are required to
upgrade their knowledge and skills. Traditional Organizations are fixed,
inflexible and planned.

• Hierarchy: Modern Organizations flow “Flat Hierarchy” and Traditional

flow “Tall Hierarchy”

• Teamwork: Team work is the main concept of modern organization. The

organization who build more effective team can gain more. On the other
hand a traditional one follows a chain of command where every employee
should be obeyed to his superior.

• Employee Morale: As an employee of a modern organization get more

freedom and flexibility to exchange his or her assessment. Consequently in
this type of organization you find high employee morale. Traditional is a
job oriented organization so you are not sure about the matter of employee
morale.

• Risk Management: Traditional organization maintain a specific policy to

protect any kind of risk that would be hampered for the organization or its
employees. So employees are more educated about the matter thus can
take any step. Modern organization are slightly brave in this matter.
Though they are always ready to take new challenges so everyone here
 prepared to face any risk instantly.

• Diversification: Moreover the main contradiction between the modern

and traditional organization is their business policies. Traditional
organizations are slightly conservative and they try to follow traditional
rules and regulation. They always flow a static business strategy and make
a workflow model maintaining a traditional marketing policy and
employee management system. A modern organization is doing
modification, rescheduling, flexible entity management and dynamic
business strategy.

• Technology: Modern Organization is more technology based and

boundary less. So the number of employee or the office compartment
doesn’t matter. But traditional organizations are centralized and backward
to accept advanced technology.

4. What is difference between open and closed system?

A business that operates an open system interacts with its environment through
giving and receiving information. In a closed system, interactions only happen
within the specific system, which means closed systems are shut off from the outside
environment, and every interaction is transmitted inside that closed system. Workers
in closed systems within an organization don’t communicate with other departments
about their activities, nor do they receive input from other departments.

Open Versus Closed System

• Independent Assembly Lines

An assembly line is a closed system, because the day-to-day activities that take
place are not dependent on or influenced by external forces, such as what
other assembly lines are doing or interactions between mid-level and
executive-level management. Assembly line workers complete their daily
tasks without having to worry about their work being interrupted by an event
such as a staff meeting. Assembly line workers must also adhere to a rigid set
of procedures that ensure efficiency and productivity. Any interaction outside
of this very precise system can throw off productivity, and wreak havoc with
schedules that are often made months or years in advance.

• Research and Development Division

The research and development division of a business is a closed system,
because the people responsible for developing new products or new
technology work without consulting other divisions in the company. This
means that R&D workers are insulated from external influences and don’t
interact with anything outside of their system. For an R&D division, operating
as a closed system helps business owners protect valuable intellectual
property that could be worth millions in the life cycle of a new product or
service.

• Trade Secrets Documentation Systems

Some businesses maintain proprietary trade secrets that they must guard to
prevent the competition from stealing this information. To keep these secrets,
companies sometimes establish a closed system, in which those documents
are not available to other departments within the organization, and are
shielded from external threats by virus and hacking protection systems. In this
closed system, there is no need for interaction outside of the system, because
everything the system requires to function properly is contained within the
system itself. In fact, external interaction in this instance would expose the
business to consequences that could reverberate for years to come.