Introduction To Organizations

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What is an organization=Organizations are (1) social entities, (2) are goal directed, (3) are designed as deliberately structured

and coordinated activity systems, and (4) are linked to the external environment.
Process of Organization =Step 1: Determination and classification of firm’s activities. Step 2: Grouping of the activities into workable departments. Step 3: Assignment of authority and responsibility on the
departmental executives for undertaking the delegated tasks. Step 4: Developing relationship amidst superior and subordinate, within the unit or department. Step 5: Framing policies for proper coordination
between the superior and subordinate and creating specific lines of supervision.
Importance of Organizations=Bring together resources to achieve desired goals and outcomes. Produce goods and services efficiently. Facilitate innovation. Use modern manufacturing and computer based technology.
Adapt to and influence a changing environment. Create value for owners, customers and employees. Accommodate ongoing challenges of diversity, ethics and the motivation and coordination of employees.
Organizational dynamics is defined as a process that helps to strengthen resources and boost the performances of employees continuously. It is how a company learns to manage as well as promote strategic
management, business practices, and organizational learning. Organizational dynamics is defined as an integrative process that should be implemented during a comprehensive approach so that the organizational
development process can manage to cooperate and participate effectively.
Importance of organizational Dynamics= Assess existing business culture, Develop strategic business solutions to drive success and boost interpersonal relationships, Resolve conflicts with respect and empathy, Create
and establish best practices, processes, system standards, and quality control that are performance-driven and goal focused
Elements of Organizational Dynamics= Effective planning - Organizational planning includes expense management, revenue forecasts, production scheduling, and inventory control and these plans and activities are
used effectively by the managers to lay the groundwork for regular duties. Goal execution- The process includes implementing the expected deliverables and later evaluating and following them up to identify any
inefficiency. To accomplish the objectives of goal execution, the manager has to allocate responsibilities and resources to the employees in the organization based on their skills, know-how, and schedules of work
Leadership - It includes commendable foresight and a hands-on approach to boost the performance, knowledge, and innovation of the employees as well as the productivity of the organization. Resource control
- The process includes establishing effective systems by the management to gather data and information that will help in determining whether the organizational goals are met or not.
Functions that have an Impact on the Organizational Dynamics = Quality Control: Aim bring out the best possible qualitative work. The management appoints a quality control supervisor to check the work that has been produced and
identify any related issues and problems. This is no doubt an effective measure to boost the quality, but it also harms the employees. Some of them might not be comfortable with the idea that the supervisor is keeping tabs on them
and their workflow, and this can cause dissent and disharmony.
Productivity Improvements - Business entities will try to maximize their production to boost their sales figures and ultimately, revenue margins. For this purpose, it becomes essential to initiate measures that will include penalties as well as
bonuses.The employees often misunderstand the reason for these measures. It seems intrusive to them and this is why some try to resist and put obstacles in these efforts. It has the power to cause a rift and disrupt the
organizational dynamics.
Cost Controls - The primary reason for establishing a business entity is to earn profits, and the best way to do so is by boosting sales and minimizing costs and expenses. A business needs to control its costs from day one so that they do not
go out of hand and remain within the framework. The single most important expense is the payroll that a business has to pay its employees and workers as salaries and wages., a business entity will try to cut down on extra and
unnecessary expenses like overtime and take cost control measures like cutting down on wages and salaries. This can spread discontent and fear amongst the workforce and result in unproductive behaviour, for instance, minimized
efficiency and productivity.
Staff and Professional Development - An essential function of a business organization is to provide learning and training skills to the employees to enhance their know-how and boost the levels of efficiency. This positive effort on the part of
the organization is not a welcoming effort for every employee.Recognize the fear and uncertainty of the employee as he might not be comfortable in handling new technologies, and this is why he has been against the training
Organization
as Systems
Where the Organization Is Now – Current Realities- Adapt or Die= From mass market to markets of one - This kind of affordable personalization and service was a new value proposition. Businesses that use
technology to predict and personalize what a vast number of individuals want at low incremental cost can scale up and increase cash gross margins. Companies that don’t make this shift will find it hard to
compete. Eg: Amazon is not alone in its adaptation to the age of discontinuity, but it continues to lead the charge, always reinvesting in its future.

From building on core competencies to routinely replacing them - Recruiting the right people and deploying them in ways that allow them to apply their expertise and energy are core competencies themselves
and critical in the age of discontinuity. In an escalating war for talent, businesses that are the most skilled in acquiring and developing these competencies will have a distinct competitive advantage.Amazon
eclipsed many retailers that were too slow to adapt, but now we see brick-and-mortar competitors such as Walmart building their data analytics and e-commerce capabilities.
From hierarchical layers to a team-based structure - When teams include people who are on the front lines, the information flow is both faster and more accurate; with this increased speed comes greater
flexibility to respond to customer and market changes. The improved flow of information also creates transparency that removes a lot of organizational politics and encourages collaboration. Example: Fidelity
Investments, the financial services firm, recently restructured its personal investing group in a team format. Each team has a clear mission and much autonomy in how to accomplish it. The roughly 5,000-
person organization now has just three layers below the president and operates at lower cost and with shorter cycle times for innovation. The control function that managerial layers used to perform is now
done through software that generates detailed metrics. Reports are produced 24/7 and highlight any red flags in the data.

From inside-out to outside-in management - To keep a company competitive over the long term, leaders must know what is happening far beyond their own industry, geography, and existing customers. Societal
issues around sustainability, racial justice, and geopolitics affect many aspects of business, from strategy to the ability to hire the best talent. Business leaders need a wide lens and a routine for detecting
early-warning signals of external changes. Some leaders set aside 10 minutes in every team meeting to discuss any new dynamics people are observing, sometimes prompted by a newspaper article or an
outside event.
What are organizational values? =Organizational values are a set of values or beliefs that define what an organization is and what they want to achieve. For example, many businesses have “integrity” or “innovation” as organizational
values.Organizational values give employees, customers, and other stakeholders a clear understanding of how an organization wants to conduct themselves. When cultivated properly, organizational values play an important role in
how both employees and the business as a whole act on a day-to-day basis.

What should I consider when selecting my organizational values? = Degree of hierarchy – Is the company structured with many layers to maintain accuracy and precision? Or is it flat to enable innovation?
Degree of urgency - should people ask permission before starting projects or feel empowered to make quick decisions? People or task orientation – do you focus on tasks, believing that efficiency and
process drive success? For example, is work-life balance more important, or results? Functional orientation – Emphasis on functional area eg. an innovative company may have a core value focused on R&D.
How do I create organizational values?=Assess the existing corporate culture - Do your employees’ actions reflect your existing company values? It can be helpful to get opinions from others at this stage. So, ask vendors, business
partners, and staff: Which values are we projecting? Which values are most important? And which values are we forgetting altogether?
Start your strategic planning now - Whether you’re a completely new organization or just re-defining your organizational values, you need to have a clear vision of your goals in one, three, or five years. After all, your values should reflect
your goals.
Shape or re-shape your values - Review your plan and determine what new core values are needed to achieve your goals. Eg: of organizational values; THREADS (teamwork, honesty, reliability, energy, action, drive, and scope).
Define and incorporate your values - Once you’re sure which values are most important in achieving your company’s mission, it’s time to start defining and implementing them.

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