2 types of the Organization Nature
The term "organization" is used in two different senses. In the first sense, it is used to denote the process of organizing. In the second sense, it is used to denote the results of that process, namely, the organizational structure.
So, the nature of the organization can be viewed in two ways:
Now explain each;
When we consider the organization as a process, it becomes the function of every manager. Organizing is a continuous process and goes on throughout the lifetime of an enterprise. Whenever there is a change in the circumstances or material change in the situation, new types of activities spring up. So, there is a need for constant review and reassignment of duties. Right persons have to be recruited and necessary training has to be imparted to enable them to be competent to handle the jobs.
The process of the organization thus involves dividing the work into a rational way and interpreting the activities with work situations and personnel. It also represents a humanistic view of the enterprise since it is the people who are uppermost in the process of integration of activities. Continuous review and adjustment make this dynamic as well.
An organization structure is a systematic combination of people, functions and physical facilities. It constitutes a formal structure with definite authority and clear responsibility.
It has to be first designed for determining the channel of communication and flow of authority and responsibility. For this, an analysis of different types has to be done.
Peter F. Drucker suggests the following three types of analysis:
A hierarchy has to be built-up i.e., a hierarchy of positions with clearly defined authority and responsibility. The accountability of each functionary has to be specified. Therefore, it has to be put into practice. In a way, the organization can be called a system as well.
The main emphasis here is on relationships or structure rather than on persons.
The structure once built is not liable to change so soon. This concept of organization is, thus, a static one. It is also called the classical concept. Organization charts are prepared to depict the relationship between different persons. In an organizational structure, both formal and informal organizations take shape.
The former is a pre-planned one and defined by the executive action. The latter is a spontaneous formation, being laid down by the common sentiments, interactions and other interrelated attributes of the people in the organization. Both formal and informal organizations, thus, have structure.
So, the nature of the organization can be viewed in two ways:
- Organization as a process, and.
- Organization as a structure or framework of the relationship.
Now explain each;
Organization as a process:
As a process, the organization is an executive function. It becomes a managerial function involving the following activities:- Determining activities necessary for the accomplishment of the business objective.
- Grouping of interrelated activities.
- Assigning duties to persons with requisite competence.
- Delegating authority, and.
- Coordinating the efforts of different persons and groups.
When we consider the organization as a process, it becomes the function of every manager. Organizing is a continuous process and goes on throughout the lifetime of an enterprise. Whenever there is a change in the circumstances or material change in the situation, new types of activities spring up. So, there is a need for constant review and reassignment of duties. Right persons have to be recruited and necessary training has to be imparted to enable them to be competent to handle the jobs.
The process of the organization thus involves dividing the work into a rational way and interpreting the activities with work situations and personnel. It also represents a humanistic view of the enterprise since it is the people who are uppermost in the process of integration of activities. Continuous review and adjustment make this dynamic as well.
Organization as a structure or framework of relationships:
As a structure, the organization is a network of internal authority, responsibility relationships. It is the framework of the relationship of persons, operating at various levels, to accomplish common objectives.An organization structure is a systematic combination of people, functions and physical facilities. It constitutes a formal structure with definite authority and clear responsibility.
It has to be first designed for determining the channel of communication and flow of authority and responsibility. For this, an analysis of different types has to be done.
Peter F. Drucker suggests the following three types of analysis:
- Activities analysis.
- Decision analysis, and.
- Relations analysis.
A hierarchy has to be built-up i.e., a hierarchy of positions with clearly defined authority and responsibility. The accountability of each functionary has to be specified. Therefore, it has to be put into practice. In a way, the organization can be called a system as well.
The main emphasis here is on relationships or structure rather than on persons.
The structure once built is not liable to change so soon. This concept of organization is, thus, a static one. It is also called the classical concept. Organization charts are prepared to depict the relationship between different persons. In an organizational structure, both formal and informal organizations take shape.
The former is a pre-planned one and defined by the executive action. The latter is a spontaneous formation, being laid down by the common sentiments, interactions and other interrelated attributes of the people in the organization. Both formal and informal organizations, thus, have structure.
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