Understanding Organisations: Understanding the internal and external organisational environments
This section covers:
Organisational theory
Organisation structure
Centralisation and decentralization
Levels of the organization
Mintzberg's nine design parameters
Formal organisational relationships
Definition of an organisation: Systems of activities and behaviours to enable humans and their machines to accomplish goals and objectives
a joint function of human characteristics and the nature of the task environment.
Organisational Theory
Organisations are 'complex adaptive systems' that use people, tasks and technologies to achieve specified goals and objectives. Organisational theory refers to how organisations are
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The purpose of structure is the division of work among members of the organisation, and the co-ordination of their activities so that they are directed towards achieving the same goals and objectives of the organisation. Structure defines tasks and responsibilities, work roles and relationships, and channels of communication.
Objectives of an organisation structure
accountability for areas of work undertaken by groups and individual members of the organisation
co-ordination of different parts of the organisation and different areas of work
effective and efficient organisational performance, including resource utilisation
monitoring the activities of the organisation
flexibility in order to respond to changing environmental factors
the social satisfaction of members of the organisation
Dimensions of organisational structure
Child (1988) suggests six major dimensions as components of an organisation structure:
allocation of individual tasks and responsibilities, job specialisation and definition
formal reporting relationships, levels of authority and spans of control
grouping
Organizational structure indicates the company's formal reporting relationships, procedures, controls and authority, & decisions making process. An organisation's strategy is its plan for the whole business that sets out how the organisation will use its major resources. An organisation's structure is the way the pieces of the business fit together internally. It also covers the links with external factors such as partners and other parties. For the company to deliver its plans, the component of the structure must cooperate with each other
Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by:
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
An organization, in its simplest form, is comprised of people brought together to achieve a common goal whether it be solving a problem, selling a product or providing a service. The existence of the organization is wholly dependent on the collective body of individuals involved and it is these individuals that are the driving force behind the success or failure of a company. The relationships that connect the people within the organization dictate how the culture is developed and perceived.
Organisations are social entities that involve individuals and groups to obtain benefits and goals in different ways. The struggle for resources, personal conflicts and a variety of influence tactics used by these social entities assists in obtaining them.
The structure of an organization is very important because it determines the different roles and how all the departments perform. The organizational structure consists of a group of people that works together to achieve the goals that are implemented.
The organisation is defined as the planned coordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labour and function, and through a hierarchy of authority and responsibility (Schein, 1980).
The structure of an organization is the sum of total ways in which it divides its labour into distinct tasks and then achieves coordination among them. (Mintzberg, 1979). An organization can be structured in many ways depending on their objectives. An organizational structure consists of activities such as task allocation, coordination and supervision which are directed towards the achievement of organizational aims. (www.wikipedia.org)
An organizational structure is a framework set for certain activities at the work place like coordination of activities, supervision of employees and task allocation to be organised (Mills, 2005).
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
Organizations are social entities that are driven by goals that are designed intentionally, and coordinated activity systems and they are linked to the external environment. It means that the organization should have a way of linking the internal and external environments. Organizations are made of people and the relationship between the people is essential. There is a deliberate move by organization management to come up with structures that ensure coordination of
Organizations are social entities that are goal directed, are designed as deliberately structured and coordinated activity systems, and are linked to the external environment (Kirst-Ashman, 2011). The four main parts of that definition are social entity, goal directed, deliberately structured, and link to external
According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the
Organizational structure is a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure: