Management and business organization NOTES: Chapter 3 Introduction: 1. What is an organization: Consists of two or more people that have consciously arranged to create a basis from which to function on a regular basis to achieve a common goal. Despite differences the four common factors that organisations share are: people,objectives, structure and management. Watson refers to 3 aspects of organisational life: o Importance of creative, critical and situation defining characteristics of the individuals within the organization. o Varieties of interests and goals among individuals and groups with emphasis on conflict and political behavior o Interaction between organization and general environment, and recognition of affects on the environment.
2. Types of organizations: Formal organization: o Planned co-ordination of activities for the achievement of a common, explicit purpose or goal, through division of labour and function, hierarchy of authority and responsibility. o Is deliberately planned and created, o Deals with the co-ordination of activities, o Hierarchically structured with stated objectives, o Based on specification of tasks, defined relationships of authority and responsibility, o A coalition of individuals with a number of sub coalitions Informal Organisation: o Arises from Interactions between people in the organization, o Social and psychological needs of the people in the organization o Development of groups with their own relationships and norms of behavior, o Is flexible and loosely structured o Relationships may not be defined o Membership is spontaneous, o Different groups and norms of behavior outside the formal structure may give rise to conflicts about the aims of the formal organization.
Functions of informal organisations: o Provides personal identity and satisfaction of social needs for members o Provides additional channels of communication, o Provides motivation o Provides stability and security o Provides a means of highlighting deficiencies or weaknesses in the formal organization. Organisational Conflict: o Conflict is behavior intended to obstruct the achievement of goals by another o Based on incompatibility of goals o Management establishes acceptable and non-acceptable behavior
3. Components of an organization: a. An organisation comprises mainly of two components: i. Operating component: People involved in producing the product or service. ii. Administrative component: Managers and analysts that supervise and coordinate. b. Work organisation can be analysed in terms of 5 components: i. Operational core is concerned with direct performance of technical or productive operations and carrying out actual task activities. Example: Workers in assembly line. ii. Operational support provides indirect support of technical or productive process, closely related to flow of operational work, iii. Organisational support concerned with provision of services for the whole organisation and is usually outside the actual flow of operational work. iv. Top Management concerns broad objectives and policy, strategic decisions, the work of the organisation as a whole and interactions with the external environment. v. Middle Management concerns co-ordination and integration of activities, providing links with operational/organisational support staff and between the operational core and the top management. 4. Classification of Organisations a. Economic organisations: Business firms, b. Public service organisations: governments, local authorities, hospitals, c. Social Enterprise organisations: organisations that deal with social and environmental concerns, d. Protective organisations: military, trade unions, police e. Social or associative organisations: clubs/societies f. Religious organisations: churches
g. Political organisations: political parties h. Educational organisations: such as universities i. Voluntary organisations and charities: citizens advice bureau. 5. The Open...
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