What is an Organization

 It is a social system composed of people,

structure and technology for achieving
common goals in a dynamic environment
S.A. SHARLEKAR & V.S.
SHARLEKAR
 Organization is a mechanism or a basic
framework enabling person to work together
effectively to achieve the set goals through
integrated group efforts.

 It is a medium for the management to

exercise managerial functions
 W.J. DUNCAN
 An organization is a collection of interacting
and interdependent individuals who work
towards common goals and whose
relationship are determined according to
certain structure
 Characteristics of
Organization
 Human Association
 Common Goal
 Division of Work
 Hierarchy of Authority
 Flexibility or Environmental Adaptation
 Types of Organization

 Business Organization
 Established in order to make profit
 Non-Profit Organization
 Established not for making profit but for giving or
providing services to clients/customers or
community
 Cooperative Organization
 Established to reduce the efforts of competition and
maximize the value of cooperation
 Government Organization
 Established by the government to provide service to
general public

 International Organization
 Established by the involvement of different
countries for the sake of their welfare
 What is a Goal
 It is the expected outcome from activities
performed in the organization
 The reason behind the existence of the
organization
 It is the desired end that organizations wants
to achieve in the future by performing several
activities
 A. ETZIONI

 Goal may be defined as a desired state of

affairs that organizations attempt to realize
 KOONTZ AND WEIHRICH

 Goals are the end towards which activity is

aimed- they are the results to be achieved
 VISION AND MISSION
 Vision
 A general statement of its intended direction that
generates strong emotional feelings in
organizational members

 Mission
 It states who the company is, what it does and
where it is headed
 Purpose of Goals
 To provide guidelines and directions
 To develop a good planning
 To motivate employees
 To utilize resources optimally
 To evaluate and to control
 Types of Goals
 Level Wise Goals
 Corporate goals
 Broad goals which covers and direct overall activities of
an organization
 Formulated by top management
 Tactical Goals
 Goals that are sets to translate the strategic goals into
action
 Formulated by department heads or middle level
management
 Operational Goals
 Goals that are more defined and time bound that help
to achieve the tactical goals
 Formulated by lower level management
 Features of Effective
Organizational Goal
 Specific
 Measurable
 Acceptable
 Realistic
 Time- bounded
 Approaches to Goal
Formulation
 Top-Down Approach
 Directive Approach

 Bottom-Up Approach
 Participatory Approach

 Management by Objectives
 Peter Durker (1960)