Organization is defined as a consciously coordinated social unit made up of two or more persons, those operates on a relatively continuously basis to accomplish certain objective or group of objectives.
Individuals & inter-group relations are managed effectively by using organizational structure, particularly between different divisions & functions.
It describes how people and resources are grouped by managers along with integration of people & groups to stimulate them to work together.
Furthermore, it describes how organizational effectiveness & inter-group relationships are influenced by organizational norms & values.
See Also: Management in Organizational Behavior
Managers try to build supportive work attitudes, encourage workers to work hard and permit groups & people to cooperate and work together effectively. The behavior of people & groups are affected by the organization’s structure & culture.
Organizational structure is the formal system of reporting and task relationships that coordinate control and motivates workers so they work together and cooperate to accomplish organizational objectives. Organizations are
- Goal Oriented
- Social Entities
- Linked to External Environment
- Deliberately Structured
Components of an Organization
The organizational design is influenced by the environment. The ability to react rapidly & creatively is significant, when uncertainty exists.
By making behaviors & attitudes predictable, performance is improved by the organization when the environment is stable. Predictability and creativity are fostered by particular cultures & structures.
- Task: An organization’s purpose, mission or objective for existing
- People: The organization’s human resources
- Structure: How divisions, departments & the overall organization are designed at the macro level. The way in which the work of the organization is designed at the micro level.
- Technology: The mechanical & intellectual processes employed by an organization to convert inputs into products & services they meet
Formal vs. Informal Organization
Formal Organization: The component of the organization that has official recognition and legitimacy.
Informal Organization: The unofficial component of the organization.
Why Do Organizations Exist?
Organizations exist due to the following reasons.
- To increase division of labor and specialization
- Manage the external environment
- Exert control & power
- Utilize large-scale technology
- Economize on transaction costs
Factors Affecting Organizations
Following are the two factors that affect organizations.
- Organizational Environment
- Technological Environment
Organizational Process
The set of resources surrounding an organization are included in the organizational environment. Which contain inputs, resources to convert inputs and the resources that organizations compete and are scarce or required resources?
In getting required resources, there is much uncertainty. The required resources are secure and protect by the organizations by designing their cultures and structures in particular ways.
See Also: Importance of Organizational Behavior
The second design contingency is the technology that is faced by an organization. The combination of raw materials, human resources and equipment that employees utilize to transform raw materials into goods or services is refer as technology.
Each job is the component of the technology of the organization. An organization must design its culture & structure to permit for the function of technology.
Plans of actions are developed by organizational processes in order to compete successfully by getting resources and outperforming competitors. These plans of actions are known as strategies.
Organizational Change
The ongoing process that has significant implications for the well-being of the members of organization and for organizational performance is called organizational change.
The members of the organization and the organization itself must be constantly on the alert for alteration from outside environment and from within organization. Also they must acquire how to adjust to change effectively & rapidly.
Because an organization & its managers were unaware of or ignored alteration in the surroundings and did not make incremental changes as required, the revolutionary kinds of alteration that result from reengineering & restructuring are necessary only in most cases.
The more effective and easier the change process becomes, the more an organization changes. Building & managing a plan for alteration is vital to success of the organization.
