Organization

Organization
A business organization is an individual or group of people that collaborate to achieve •
certain commercial goals. Some business organizations are formed to earn income for
owners. Other business organizations, called nonprofits (Non-profit Organization, NPO
are formed for public purposes. These businesses often raise money and utilize other
resources to provide or support public programs.
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Structure
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Structure is not simply an organization chart. Structure is all the people, positions, •
procedures, processes, culture, technology and related elements that comprise the
organization.
It defines how all the pieces, parts and processes work together .This structure must be
totally aligned with strategy for the organization to achieve its mission and goals.
Structure supports strategy. If an organization changes its strategy, it must change its
structure to support the new strategy. Strategy follows structure. When an organization
changes its structure and not its strategy, the strategy will change to fit the new structure.
Strategy follows structure. Suddenly management realizes the organization's strategy has
shifted in an undesirable way.
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Structure •
The choice of organizational structure reflects where decisions are made, how work gets
completed, and ultimately how quickly and cheaply the firm's products can be made.
Organizational structure determines how the roles, power and responsibilities are
assigned, controlled, and coordinated, and how information flows between the different
levels of management .
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Span of Control Span of control (span of management or span of authority) is an upper •
limit to the number of subordinates who can be effectively supervised by one person.
Beyond a certain number of subordinates, the effectiveness and efficiency of supervision
decreases. Flat organizational structures have relatively few levels from top to bottom.
Thus, they have wide spans of control. Flat structures provide fast information flow from
top to bottom of the organization and increased employee satisfaction. Tall
organizational structures have many levels between top and bottom. Hence, they have
relatively
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Flat organizational structures • Tall organizational structures •
few levels from top to bottom. .1 have many levels between top .1
they have wide spans of control. .2 and bottom.
provide fast information flow .3 narrow spans of control. .2
from top to bottom of the Tall structures are faster and .3
organization. more effective at problem
increased employee satisfaction. .4 resolution.
increased frequency of .4
interaction between superior
and subordinate.
the greater order imposed by the .5
hierarchical structure.
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Type of structure: •
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Type of structure: •
1-Functional Structure
is set up so that each portion of the organization is grouped according to its purpose. In
this type of organization, for example, there may be a marketing department, a sales
department and a production department. works very well for small businesses in which
each department can rely on the talent and knowledge of its workers and support itself.
However, one of the drawbacks to a functional structure is that the coordination and
communication between departments can be restricted by the organizational boundaries
of having the various departments working separately.
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1-Functional Structure
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Type of structure: •
2-Divisional Structure
is used in larger companies that operate in a wide geographic area or that have separate
smaller organizations within the umbrella group to cover different types of products or
market areas. The benefit of this structure is that needs can be met more rapidly and more
specifically; however, communication is inhibited because employees in different divisions
are not working together. Divisional structure is costly because of its size and scope. Small
businesses can use a divisional structure on a smaller scale, having different offices in
different parts of the city, for example, or assigning different sales teams to handle
different geographic areas.
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2-Divisional Structure
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Type of structure: •
3- Process Structure
The process structure divides up the organization around processes, such as research,
manufacturing and sales. Unlike a purely functional structure, a process-based organization
considers how the different processes relate to each other and the customer. The sales
process doesn't begin until the manufacturing process produces something to sell;
manufacturing, in turn, waits on research and development to create the product. Process-
based structures are geared to satisfying the customer -- the end result of all the processes
- but they only work if managers understand how the different processes interact.
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Type of structure: •
4-Matrix Structure
The third main type of organizational structure, called the matrix structure, is a hybrid of
divisional and functional structure. Typically used in large multinational companies, the
matrix structure allows for the benefits of functional and divisional structures to exist in
one organization. This can create power struggles because most areas of the company will
have a dual management--a functional manager and a product or divisional manager
working at the same level and covering some of the same managerial territory ,A matrix
structure is a blend of functional and project-based organizations that maximize the
strength of each structure. There are three types of matrix organizations:
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Type of structure: •
4-Matrix Structure
Weak :are characterized by projects that have part-time members, limited control over •
authority, budget and decisions and multiple lines of responsibility..
Strong: have dedicated resources, internal control of budget, and moderate levels of •
control over assets, resources and decision-making authority.
Balanced : represent shared leadership between functional managers and project •
managers.
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Type of structure: •
4-Matrix Structure
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Levels of Management •
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Levels of Management •
In organizations, there are generally three different levels of managers: first-level
managers, middle-level managers, and top-level managers. These levels of managers are
classified in a hierarchy of importance and authority and are also arranged by the different
types of management tasks that each role does. In many organizations, the number of
managers in every level resembles a pyramid, in which the first-level has many more
managers than middle-level and top-level managers, respectively Each management level
is explained below in specifications of their different responsibilities and likely job titles.
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Top-level managers Typically consist of board of directors, president, vice-president, •

chief executive officers. etc.
These individuals are mainly responsible for controlling and overseeing all the •
departments in the organization. They develop goals, strategic plans, and policies for the
company, as well as make many decisions on the direction of the business in addition,
top level managers play a significant role in the mobilization of outside resources and are
for the most part responsible for the shareholders and general public.
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Middle-level managers •
consist of general managers, branch managers, department managers. These individuals
are mainly responsible to the top management for the functioning of their department.
Their roles can be emphasized as executing plans of the organization in conformance with
the company's policies and the objectives of the top management, they define and discuss
information and policies from top management to lower management, and most
importantly they inspire and provide guidance to lower-level managers towards better
performance.
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Middle-level managers •
Some of their functions are as follows:
Designing and implementing effective group and information systems. •
Defining and monitoring group-level performance indicators. •
Diagnosing and resolving problems within and among work groups. •
Designing and implementing reward systems that support cooperative behaviors. •
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First-level managers •
Typically consist of supervisors, section officers, foreman, etc. These individuals focus more
on the controlling .For instance, they, assign tasks and jobs to employees, guide and
supervise employees on day-to-day activities, look after the quantity and quality of the
production of the company, make recommendations, suggestions, and communicate
employee problems to the higher level above, etc. In this level, managers are the "image
builders" of the company considering they are the only ones who have direct contact with
employees .
 First-level managers •
Basic supervision. •
Organization Motivation Career . •
planning Performance feedback. •
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Vision, Mission, and Value •
A mission statement is a guiding light for a business and the individuals who run the
business. It is usually made up of three parts:
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Vision (big picture idea of what you want to achieve) •
Your vision communicates what your organization believes are the ideal conditions for your
organization .This utopian dream is generally described by one or more phrases, which are
brief proclamations that convey the organization's dreams for the future. By developing a
vision statement, your organization makes the beliefs and governing principles of your
organization clear to the greater community (as well as to your own staff, participants, and
volunteers).
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Mission (general statement of how you will achieve your vision) Developing mission •
statements are the next step in the action planning process. An organization's mission
statement describes what the group is going to do, and why it’s going to do that. Mission
statements are similar to vision statements, but they're more concrete, and they are
definitely more "action-oriented" than vision statements. The mission might refer to a
problem without going into a lot of detail. They start to hint very broadly at how your
organization might go about fixing the problems it has noted.
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Value (how you will behave during the process) •
The only way we can create an amazing future for our communities is if we do our work in
a way that reflects universally shared values. This ensures we do not squander our time
and resources rationalizing our actions. It helps to ensure we are not potentially
squandering our community's goodwill.
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Situation Analysis (SWOT Analysis) •

SWOT Analysis is a useful technique for

understanding your situation including your
Strengths and Weaknesses, and both the
Opportunities open to you and the Threats
you face. The aim of any SWOT Analysis is to
identify the key internal and external factors
that are important to achieving the objective.
These come from within the company's
unique value chain.
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Internal Analysis (Strength and Weakness) •
This team examines the capabilities of the organization (or of the strategy, if the group has
already developed and prioritized strategies). This is done by identifying the strengths and
weaknesses.
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External Analysis (Opportunity and Threat) •
This team will examine the context or environment in which the organization operates,
such as partner agencies, authorizing environment, stakeholders, and the influence of
economic or other demographic trends. The purpose of this analysis is to identify external
factors that could in the future create opportunities for the organization
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Situation Analysis (SWOT •
Analysis)
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Group Dynamic •
A group can be defined as several individuals who come
together to accomplish a particular task or goal. In
organizations, you may encounter different types of groups.
Informal work groups made up of two or more individuals
who are associated with one another in ways not prescribed
by the formal organization. For example, a few people in the
company who get together to play tennis on the weekend
would be considered an informal group. A formal work group
is made up of managers, subordinates, or both with close
associations among group members that influence the
behavior of individuals in the group
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Group Dynamic (Bruce •
Tuckman)
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Organization cycle •
Start up . .1
Growth . .2
Maturity . .3
Decline . .4