Chapter -2Organization

and Organizational
Development

Organization an introduction:

Common objective
Collection of people
Hierarchy of authority
Division of labor
Environmental influence
Co-ordination
Group with planned units

Purposes of organization

Effective management

Specialization among workers

Avoids overlapping and duplication

Optimum use of human resources

Defines authority an responsibility

Basis of coordination

Channels of communication

Productivity and job satisfaction

Quality of working life

Readiness for changes

Organization as a system

Inputs: Human Resources, Physical Resources,
financial resources and information

Processing: Planning, Organizing, staffing,
leading and controlling

Outputs: Products and services, Quality of
working life, productivity and readiness for
changes.

Environmental Factors: External and internal
factors

Feedback system

Organization and its environment

Environmental changes, complexities and
uncertainties.

Competitive forces:

Environmental turbulences
Management:

Information management

Social responsibility

Strategic response

Organizational design and flexibility

Mergers, takeovers etc.

Organizational Structure
1.

Line Organization:
Military Structure
Simple
Clearly defined jobs,
A and R.

Maintain discipline

Autocratic

1. Line and Staff

Organization:

Same as in line
organization

Experts provision

Combination of line and
functional structure

Balance between line
managers and experts

Organizational Structure
1. Functional
1. Committed organization:
Organization:

Group of people

Departments

Solve specific problem

Functional specialists

Executive committee

Ad hoc committee

Matrix organization structure

Special type of structure

Project based

Functional structure

Project manager integrates functional activities.

Each subordinate works under two superiors
i.e. project manager and functional managers.

Democratic, participative and cooperation

Centralization Vs Decentralization
Centralization:
Process of systematically retaining power of decision
making authority in the hands of higher level
managers.
Simple structure, unified decision, quick decision,
Economy, Suitable for small firms.
Unsuitable for large organizations, power misuse,
low motivation, wrong decisions and lack of
environmental adaptation

Centralization Vs Decentralization
Decentralization:
It is the systematic delegation of authority to the
subordinates where the work is performed
Relief to top level, managers development, better
decisions, effective control, motivation and
environmental adaptation.
Costly, Conflict, unsuitable for emergency, not
applicable in specialized services.

Good, Bad and Effective

Organization

Motivating environment
Competitive
Profitable
Service oriented
Customer satisfaction
Good working life
Readiness for changes
Compliance with government policies
Social responsibility
Maximum productivity and quality products
Democratic and participative management
Dynamic
Controlled resources to reduce misutilization of it.
Qualified human resources
Timely achievement of goals
Good feedback system