1.As a Process
Organisationisaprocessofdefining,
arrangingandgroupingtheactivities
ofanenterpriseandestablishingthe
authorityrelationshipsamongthe
personsperformingtheseactivities.
3.Dividing and Grouping the Activities
•Activitiesofanenterprisearerequired
tobedistributedbetweenthe
departments,unitsorsectionsaswell
asbetweenthepersonsforsecuring
thebenefitsofdivisionoflaborand
specialization.
4.Accomplishment of Goals or Objectives
•Anorganizationstructurehasno
meaningorpurposeunlessitisbuilt
aroundcertainclear-cutgoalsor
objectives.
5.Human and Material Aspects:
•Organisationdealswiththehumanand
materialfactorsinbusiness.Humanelement
isthemostimportantelementinan
organization.
Characteristics of an organization
•Group of people
•Common goals or objectives
•Division of work
•Vertical and horizontal relationship
•Chain of command
•Group dynamics
•Organisation is a Machine of Management
Principles of Organization
1.Principle of Objective
•Theorganizationshouldsetupcertainaims
fortheachievementofwhichvarious
departmentsshouldwork.Acommongoal
sodevisedforthebusinessasawholeand
theorganizationissetuptoachievethat
goal.
2.Principles of Co-ordination
•Theco-ordinationofdifferentactivitiesis
animportantprincipleoftheorganization.
Thereshouldbesomeagencytoco-
ordinatetheactivitiesofvarious
departments.Intheabsenceofco-
ordinationthereisapossibilityofsettingup
differentgoalsbydifferentdepartments.
3. Principle of Span of Control
•Spanofcontrolreferstothemaximumnumber
ofmemberseffectivelysupervisedbyasingle
individual.
•Thespanofcontrolenablessmoothfunctioning
oftheorganization.
•Thisisalsocalledspanofmanagementorspan
ofsupervision.
4. Principle Of Specialization Or Division Of Work
•Eachpersonshouldperformasingleleading
function.
•Thereisadivisionoflabor:adifferentiation
amongkindsofduties.
•Specializationisthebestwaytouseindividuals
andgroups.
•Divisionofworkmeansthattheentireactivities
oftheorganizationaresuitablygroupedinto
departmentsandsections.
5. Hierarchy or scalar chain:
•Itistheorderofrankfromtopto
bottominanorganization.
•Thisisalsocalledachainof
commandorlineauthority.
6. Centrality
It relates to the position or distance the
person has on the organizational chart from
other workers.
7. Principle of continuity
•Administrationisacontinuingorongoing
process–recyclingthestructureofthe
organizationbasedontheeconomic,
environmentalandsocio-politicalchanges.
Levels of Organization
There are 3 levels of organization;
1.Line organization
2.Staff organization
3.Functional organization
1. Line Organization
•It is the oldest and the simplest form of
organization.
•It is also known as the scalar organization.
•The line of authority is straight and vertical and
each person at the same level performs the same
functions.
•In an enterprise or institution, the chief executive
leads the entire organization. Here the maximum
authority rests on the top or highest levels of
management.
Types of Organization Chart
1.Horizontalchart:Thelinesofcommandflows
horizontally.Inthis,thesupervisorisontheleftside
ofthechartandthesubordinateontherightsideor
viceversa.Thisisnotfollowedinanyorganization.
2.Vertical:Inthis
chartmajorfunctions
areshownatthetop
and subordinate
functions in
successivelower
positions.Inthischart
scalarlevelsrun
horizontallyand
functions run
vertically.
3. Circular chart: Here the positions of the
persons are shown in a circle.
Advantages of Organization Chart
•They give a clear picture of the organization in a
simple way.
•They show the levels of authority and relationship
prevailing among employees at a glance.
•Dual reporting relationships and overlapping
positions come to light in the preparation of
organization chart.
•Newly hired personnel can understand their role in
the organization and behave accordingly.