Organization

Organization

Meaning:

An organization is a collection of individuals who come together to work toward a shared objective. The formation of an organization is governed by a set of principles and regulations. An organization can come from any industry. Several examples include religious organizations, social organizations, political organizations, business organizations, and so forth. So, examples of organizations include a hospital, a college or university, a sports team, or the government.

Definition:

Organization is "a group of people working together and with each other towards the achievement of the common goals."

According to Moony and Reilly- "Organization is the form of every human association for the attainment of a common purpose."

According to Keith Davis- "Organization may be defined as any group of individuals, large or small, that is co-operating under the direction of executive leadership in accomplishment of certain common object."

According to Robbins and Coulter- "An organization is a deliberate arrangement of people to accomplish some specific purpose."

According to Chesterl. Barnard-"Organization is a system of consciously co-ordinated activities of two or more persons."

According to Amitai Etzioni-"Organization are planned units, deliberately structured for the purpose of attaining specific goals."

According to Koontz and O'Donnell, "essentially as the creation and maintenance of an intentional structure of role".

To accomplish organizational goals and objectives, several types of activities are integrated into the organizational process. These objectives must be accomplished with competent management giving them with all they need to do their jobs successfully.

Characteristics of Organization

Organization is an effective and necessary instrument for the attainment of predetermined goals. The following are main characteristics of organization

• The organization is steered and directed by management.
• All individuals associated with the organization are informed of a set of guidelines and instruments.
• It prefers a team of employees whose roles, rights, and obligations are clearly outlined and categorized in accordance with the nature of their work.

The main characteristics of organizationa common objective, environmental influence, group of people, co-ordination, hierarchy of authority and division of labour. 

• Common Objective/purpose
  • Two or more person should work together in an organization to achieve common objective. The organization person involved in get benefits from the achievement of the objective. Those who cannot have common purpose cannot become fit in any organization.
• Environmental Influence
  • An organization is influenced by environment. The environmental elements such as political, legal, social, cultural, economic, technical etc, do not remain under the control of any organization whereas the like objectives, environment elements like policies, structure, resources, internal culture etc, remain under its control.
• Group of People
  • Organization is the group of individuals or unity of people. An organization cannot be formed without group of persons. It is necessary to be in group or unity for doing different works in an organization. The objective of such group of people should be the same.
• Co-ordination
  • All the functions of an organization are performed in a coordinated manner. Besides this, different objectives of the organization are integrated. Personal, departmental or any single work cannot get much importance. As a result, it becomes possible to get organizational effectiveness
• Hierarchy of Authority
  • Authority or power of the persons involved in organization is channeled according to the level in the hierarchical order. In such hierarchy the authority is delegated from higher to the lower level.
• Division of Labour
  • Although many persons work together in an of any organization, they have division of work/labour. Each individual organization remains free to use his/her rights or power to accomplish his responsibilities. Division of labour make effective and possible to get success in any work.

Organizational Structure and Its Functions

Organizational structure refers to the often hierarchical configuration of power relationships, communications, rights, and obligations within an organization. A hierarchy inside an organization is defined by this structure, which identifies each job, its function, and who it reports to. Whether it is organic or deliberate, there is a hierarchy of employees and job duties in every firm. A designed structure that matches the style, size, and operations of the organization is necessary for a business to run effectively and methodically. This structure is created to specify how an organization functions and helps an organization achieve its objectives to pave the way for future growth.

The goals and tactics of the organization determine the structure. In a centralized organization, the top layer of management controls departments and divisions with a great deal of decision-making authority. A decentralized organization allows for the distribution of decision-making authority and varying levels of independence across the departments and divisions. The organizational structure is shown in an organizational chart.

Features of good organizational structures

• Clear line of authority,
• Adequate delegation of authority,
• Less managerial levels Proper span of controls,
• Simple and flexible,
• Division of work,
• Unity of command.

Function of Organizational structure

• To divide work to be done in specific jobs and department.
• To assign tasks and responsibilities associated with individual jobs.
• To coordinate diverse organizational task.
• To establish relationship betwee individuals, groups and departments.
• To establish formal lines of authority.
• To allocate organizational resources.
• To cluster jobs into units.
• To avoid overlapping of function.
• To minimize duplication of effort or conflict.

Functional Structure

An organizational structure that includes operations like coordination, supervision, and task distribution is said to be functional. The most common issue with a functional organizational structure is that internal communication can be rather stiff, which causes the organization to move slowly and rigidly. It is as a result of the highly formalized processes and standardized ways of doing things. To ensure that information is shared both vertically and horizontally inside the business, lateral communication across functions becomes crucial.

A functional organization centralizes task coordination and specialization, which improves the efficiency and predictability of producing a small number of goods or services. Although functional units frequently operate at a high level of efficiency, their ability to cooperate with one another is occasionally jeopardized. As they may be possessive and hesitant to cooperate, such groups may struggle to get along with one another. In the end, this can result in lower production levels overall.

For easy understanding of dynamics of organizational function, the organizations can be classified as:

Formal Organization

A formal organization is one that includes predetermined goals and strategies, a hierarchy of power and relationships, a system of rules and regulations, and the relative placement of human and material resources.

According to Allen," It is a system of well defined job, each bearing a definite measure of authority, responsibility and accountability, the whole consciously designed to enable the people of enterprise work most effectively together in their objectives. it is accomplishing their characterized by being well-defined, bound by delegation and relatively stable. The relatively permanency and tendency towards elaboration and growth are some of the demonstrable facts of formal organization".

Features of Formal Organization

• It is extremely stable since it has a clearly defined organizational structure.
• The lines of authority and duty are unambiguously established.
• It is founded on the division of labor theory.
• It is purposefully created and legally declared.
• It has a clearly defined chain of command and chain of communication.
• Formal organizations have fairly rigid structures.
• The organization's primary focus is on job performance.

Advantage of Formal Organization

• They offer the fundamental framework for the distribution of labor and responsibility.
• Tasks are completed on time, and goals and objectives are well specified.
• It is reliable and consistent. Therefore, it gives employees a sense of stability.
• Because of uniform laws and regulations, there is impartiality.
• It facilitates performance control by establishing a set of standards.
• It supports further human resources development tasks like hiring, promoting, career planning, and manpower planning.

Disadvantage of Formal Organization

• Not allowing for flexibility
• Prevents maturation and growth of the individual due to control.
• Reduce the range of creativity due to specialization and task-specific requirements.
• Structure stiffness may make it challenging to adapt to environmental changes.

Informal Organization

People working together may develop social groups or friendships, which are referred to as informal organizations. Through information sharing and dissemination within the organization, people typically forge new ties, some of which may be based more on personal than professional considerations. How people collaborate during practices is governed by an intricate social system. It is also believed to represent the culmination of conventions, interactions, and behaviors from both the personal and professional spheres. Relationships in informal groups are based on feelings, emotions, and preferences.

Unofficial interpersonal ties among employees make up the informal organizational structure, which influences how effectively they perform. It refers to a network of interpersonal and societal ties that spontaneously develops within the established framework.

Features of Informal Organization

• Formation of groups may evolve spontaneously and constantly.
• It is dynamic and responsive.
• Excellent at motivation.
• Treats individual as human beings.
• Cohered by trust and reciprocity.
• Emphasis is on personality, politics, personal attitudes, emotions,likes, dislikes and other social factors.
• There is informal network or grape vine communication
• Focus is on individual and group goals.

Advantage of Informal Organization

• Perpetuate the cultural and social value in the group.
• Provide social status and satisfaction.
• Promote communication among employees.
• Provide social control by regulating behavior inside and outside group.
• Helps in filling gaps of formal structures.
• Widens the effective span of control.
• Encourages better management.

Disadvantages of Informal Organization

• Rumors.
• Resistance to change.
• Role conflict.
• Conformity.

Conformity

Form or Types of formal organization

There are various forms or types of formal organization structures. Each organization has to evolve its own organization structure. Most nursing departments use one or a combination of the following organization.

• Line organization.
• Line and Staff organization.
• Functional line and staff organization.

Line Organization

Line organization is the oldest and simplest method of administrative organization. It is a kind of structure that has line of authority. According to this type of organization, the authority flows from top to bottom in a concern in a step by step manner (Fig. 24.2). The responsibility moves in the upward direction. It is also known as Military type, scalar or vertical and departmental organization. All the major decisions are taken by the top managers. It was first developed by the Roman army and later adopted by armies all over the world. 

Characteristics of Line Organization

• It is the simplest form of organization.
• Direct line of authority flows from top to bottom of organizational hierarchy.
• Line of responsibility and accountability flows in an opposite (i.e. Line of responsibility in downward direction and accountability in upward direction).
• direction, but equally direct manner.
• It follows principles of unity of command, unity of direction, order and scalar chain.
• Major decisions are taken by top administrators.
• A two-way communication is transmitted from top to bottom and vice versa.

Advantage of Line Organization

• Simplicity:
  • It is the most simple and oldest method of administration. It is easy to orient new employee because of clearly defined interpersonal relations as well as responsibilities and accountability
• Chain of Command:
  • There is direct superior-subordinate a relationship and scalar chain of command flows from top to bottom.
• Better Discipline:
  • Each employee takes orders from and accountable to only one superior.
• Fixed and Clear-Cut Responsibility:
  • Provides clear cut authority and responsibility for each position.
• Prompt Decision:
  • It facilitates prompt decision making at every level due to fixed responsibility.
• Economical:
  • Since experts are not appointed, so it is economical.

Disadvantage of Line Organization

• Lack of specialization:
  • A line organization flows in a scalar chain from top to bottom and there is no scope for specialized functions. For example, expert advices whatever decisions are taken by line managers are implemented in the same way.
• Overburden:
  • Top executive are overburdened
• Inadequate Communication:
  • The complaints and suggestions of lower authority are not communicated back to the top authority. So there is one way communication and there is also delay communication
•  Favoritism:
  • It is due to autocratic behavio of managers.
• Lack of Coordination and Cooperation:
  • Whatever decisions are taken by the line officials, in certain situations wrong decisions, are carried down and  implemented in the same way. Therefore the degree of effective coordination is less 
• Rigidity:
  • There is rigidity in working of organization. So, workers tend to resist innovative changes  and resist recommendation from outsider. 

Line and Staff Organization

It is the organization where responsibility over a specialty is transferred to two groups of people known as line members and staff members, and specialists are introduced in a consultative capacity and without any outward authority. Although staff supervisors assist, advise, and counsel the line executives, the executives always maintain the authority of command. They are responsible for carrying out plans and policies and make every effort to fulfill the organization's goals. They focus their attention on planning, research, and advising duties because they are specialists.

Line refers to those organizational positions and components that have responsibility, authority, and accountability for achieving primary goals, according to Louis Allen's definition of line and staff organization.

Characteristics of Line and Staff Organization

• It is a more intricate variant of line organization.
• Line and staff authority are combined.
• In line and staff organization, there is division of labor and specialization.
• In this organization, administration includes both planning and execution.
• While line executives are assigned responsibility for implementation, planning is handled by the staff.
• The line executives continue to hold the reins of authority. Staff officials do not have such power.
• The staff manager has command over the employees in his department. This characteristic allows for a great deal of specialization, which increases efficiency.
• Line and staff executives frequently have disagreements.

Advantages of Line and Staff Organization

• Encouragement to Specialization:
  • Line managers get the benefits of specialized knowledge from staff at every level.
• Fewer Burdens on Line Executives:
  • Due to availability of staff who gives expert advice in planningand research
• Better Decision-Making:
  • Staff helps line to take better decisions by providing expert advice
• Clear Distinction Between Counseling and Execution:
  • Line and staff have two different types of functions. Staff has advisory function and line has execution functions.
• Flexibility:
  • This type of organization is more flexible than line organization
• Encouragement to Research and Development:
  • Through the advice of specialized staff, the line executives can get time to execute plans by taking productive decisions andalso give a wide scope to the line executive to bring innovations and to carry out research work in those areas.
• Undivided Responsibility:
  • Everybody in line has accountability for their work.
• Unity of Command:
  • Line managers have the unity of command; staff provides special advice and guidance without giving orders to those in chain of command.

Disadvantages of Line and Staff Organization

• Lack of Understanding:
  • Conflicts between line managers and staff specialists are quite common in this type of organization. The line managers are generally not interested in the advice offered by experts and feel that the line managers lack knowledge of new ideas. Moreover, if something goes wrong, the attempt is made to pass on blame by one party to the other. Thus, there is shifting of responsibility.
• Dependency:
  • Line managers are more dependent on staff for seeking advice, planning development.
• Delay in Taking Decision:
  • As line executives have to consult staff experts before finalizing the decisions, it is likely that line managers delayed for taking decision.
• Lack of Coordination:
  • Though the staff provide advice for decision making process, but the ultimate authority provided to line executive. So, there is chancespoor coordination. The factors of designations, status influence, sentiments can pose a distress on the minds of the employees.
• Lack of Accountability of Staff
  • Since the power of command remains with the line executive, the staff is accountable for the work. not accountable for the work
• Expensive:
  • Line and staff organization is a costly organization as the line executives are supported by highly paid staff executives who are experts, that adds to expense of the organization.
• Complexity:
  • Due to dual authority, this Organization is too complex; there is division of functions and too much dependence on staff.

Functional Line and Staff Organization

The staff officers have been distinguished from the line organization by being granted some command authority over line employees, which has allowed them to diverge from the line organization. Employees in this type of organization are categorized in accordance with the tasks they execute for the company, or the management position is divided based on specialization. Work planning and plan implementation are also separated in this type of organization.

This kind of organization is founded on the principles of total specialization and departmental work division, and it develops from the notion that the organization must carry out specific functions. is Each function must be carried out responsibly for the organization as a whole. For example, the personnel department will look after the recruitment, selection, training payment, etc. of all persons of the organization.

Characteristics of Functional Organization Structure

• Work specialization exists.
• The actions of the entire company are broken down into several functions.
• Every functional department's leader is a functional specialist.
• obeys functional authority, and there are connections between different departments.
• Clearly defined staff and line division

Advantages of Fuctional Organization Structure 

• Specialization
  • This type of organization facilitates a high degree of specialization by division of work as per specialization. Every functional in charge is an expert in her areas, and she is in a better position to guide and help the staff at operational level.
• High morale and sense of belongingness among staff
  • The personnel become expert in their areas, their talents can be more effectively applied that brings satisfaction and increase morale among them. There is greater security and social need satisfaction for employees.
• Promote professional achievement and development:
  • This type of organization provides a greater scope for development of the employees and they become specialized in one type of function.
• Flexibility:
  • It provides the flexibility in working Necessary changes can be introduced easily to suit the needs of the situation.
• Effective supervision and better control:
  • This type of organization facilitates effective control being one functional head and due to specialization. They concentrate on the specific functional area and also keep effective supervision on their subordinates.
• Clarity:
  • This type of organization brings clarity in their functions, better supervision and thus maintain the quality of work.
• Reduction of Workload:
  • Each functional head looks after her areas thus reduced the burden of work of top-level administrator.

Disadvantages of Functional Organization Structure

• Multiple command:
  • Unity of command is absent in the functional organization as each staff at lower level gets orders and instructions from several persons in a team.
• Lack of responsiveness:
  • It lacks responsiveness necessary to cope up with new and rapidly changing work nenvironment which cause delays in decision making.
• Interdepartmental confusion:
  • This type of organization is based on specialization as function is taken as a base for dividing the work. The authority is overlapped and responsibility is divided. This creates interdepartmental confusion that can become detrimental to organizational efficiency.
• Narrow perspective:
  • A functional head tends to create boundaries around herself and does only for her department rather than for the organization as a whole
• Lack of coordination among functional or departmental heads:
  • There is possibility of lack of coordination among the departmental heads to take the decision of a problem of a particular department.
• Economy:
  • This type of organization is very costly because of placement of functional experts as heads of departments.
• Divided responsibility:
  • In functional organization, responsibility is difficult to fix on a specific person; responsibility itself is divided among many people.