ORGANIZATION

MS. PRITEEKA
DEFINATION
 An identifiable group of people contributing their
efforts towards the attainment of goals is called
the organization. (Mc. Farland)
 A group of people who are cooperating under the
direction of leadership for the accomplishment of
a common end. (RC Davis)
CHARACTERISTICS
 Basic function of management
 Based on common objectives
 Create basic structure of relationship
 It is process
IMPORTANCE
 Specialization
 Role Clarity
 Clarity in the line of authority and responsibility
 Better coordination and communication
 Growth, Expansion and Adaptability to New
Technology
 Better utilization of Human Resources
 Effective Management
PROCESS

1) Division of Work
2) Grouping of Work
3) Delegation of Authority
4) Coordination of Work
PRINCIPLES
 Principal of Objective
 Principal of Specialization
 Principal of Coordination
 Principal of Authority and Responsibility
 Principal of Defination
 Span of Control
 Principal of Balance
 Principal of Continuity
 Principal of Uniformity
 Principal of Unity of Command
 Principal of Exception
 Principal of Simplicity
 Principal of Efficiency
 Scalar Principal
ORGANIZATION CHARTS
DEFINATION
 Simple diagrammatic method of describing an
organization structure. It indicates how the
departments are linked together on the basis of
authority and responsibility.
 It shows the structure of organization as well as
the relationship and relative ranks of its position.
STRUCTURE
 The Boxes: represents various important positions
 Title of the Position: these are in the boxes
 Position in the Hierarchy: the distance of the box
from the top indicates its position in the hierarchy
 Formal Reporting Relationship: the lines joining
the various position represents the formal reporting
relationship usually between the superior and
subordinates
FEATURES
 Diagrammatical chart
 Formal organization structure
 Lines of authority in the organization
 Channel of communication
 Units are inter related
ADVANTAGES
 Brings clarity to the organizational relationship
 Quick method and easy way of visualization
 Useful in familiarization and training new
employee
 Provide lot of information about the organization
 Provide specific departmental information
 Communicate and solicit feedback
LIMITATION
 Does not provide all the details of organization
structure created
 Only shows formal relationship
 Gives a static picture of the organization
 Emphasizes only formal channel of communication
 Lacks an element of flexibility
 Leads to rank consciousness and destroys team
spirit
TYPES
 Hierarchical
 Matrix
 Flat or Horizontal