Posts Tagged Organization

ORGANIZATION STRUCTURE AND CHART-1

Both the organization chart and job description are simplified abstractions of the actual situation. In reality there are many more positions and relationships than indicated in the organization chart. It might happen that industrial cleaning might not clean all required things. The degree of authority a superior has over his subordinate is also not indicated in the chart, nor is the relationship between two managers at an equal level reflected in the organization chart.

 

Despite all these limitations, the organization chart is an extremely useful tool in understanding and designing the structure. The structure of an organization, unlike that of a physical mechanical or biological system, is not visible. Therefore, it can only be understood by a representative model and by observing its behaviour.

 

The elements of an organization structure are: 

1.      the network of formal relationships and duties, i.e. the organization chart plus the job descriptions,

2.      the manner in which various tasks and activities are assigned to different people and departments (differentiation),

3.      the manner in which the separate activities and tasks are coordinated (integration),

4.      the power, status, and hierarchical relationships within the organization (authority system),

5.      the planned and formalize policies, procedures and controls that guide the activities and relationships (administrative system), and

6.      the flow of information and communication network.

 

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ORGANIZATION STRUCTURE AND DESIGN

Organizing is the formal grouping of activities and resources for facilitating attainment of specific organizational objectives. It is possible to achieve objectives without formally organizing, but there is likely to be great wastage of resources and time. Organizing ensures that objectives are achieved in the shortest possible time, in an orderly manner, with maximum utilization of the given resources. For a company who are selling blinds, vertical blinds, roman shades online, utilization of each leads given to them is most important part of organization.

 

In the context of a firm, its people, machines, building, factories, money, and credit available for use are the resources at its disposal. All these resources are limited. Your roles as a manager is to organize all these resources, so that there is no confusion, conflict, duplication or wastage in achieving your organization’s objectives and authority for utilizing the resources assigned to him, and the higher authority to whom he has to periodically report his progress. In this unit, we will take up all these issues for discussion, dwelling at some length on the various types of organization structure that you can choose from to suit your company’s specific objectives.

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APPROACH TO UNDERSTAND THE ORGANIZATION

The word “organization” may be used to refer to the process of organizing, the structure that evolves out pf this process and the processes/activities that take place within it. Organizations are social units with specific purposes. The basic elements of organizations have remained the same over the years. Several disciplines provide the knowledge and the means to understand organizations.

 

However, it is appropriate to look at organizations integrally in multi-disciplinary perspective. Three viewpoints have emerged, over the years in successive stages, each seeking to provide a window on the others. They are the classical approach, three streams stand out: bureaucracy, administrative theory and principles of scientific management. It is important to note that with the passage of time, the viewpoints have been changed or modified, but not replaced as such. Each major contribution brought new knowledge, awareness, tools and techniques to understand the organizations better. Thus, today we are richer than ever before tin terms of our knowledge about approaches to understand organizations. All the same, more knowledge meant reckoning with more complex variables to comprehend the complexities of human organizations. There is, as yet, no general, unified, universal theory as such. Organizations being diverse and complex in more senses than one, it is difficult, if not meaningless to be too general or too specific about them.

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MODERN (SYSTEM) VIEWPOINT-1

As a part of our talk on organizational design, development and change, we discussed on different topic like Classical Viewpoint, Dysfunctional Aspects, Administrative Theory, Scientific Management, Neoclassical View Point, and many aspects which are related to Organizations. Today we will discuss on Modern means System Viewpoint here.

 

Modern theories of organization and management have been developed largely since the 1930s. The perspective here is to provide a systems viewpoint. Among the several persons who contributed to the modern theory, it was perhaps Chester I. Bernard, who in 1938, provide a comprehensive explanation of the modern view of management and organization. He considered the individual, organization, suppliers and consumers as part of the environment. Ten years later, Weiner’s pioneering work on cybernetic developed concepts of systems control by information feedback. He described an adaptive system (including an organization) as mainly dependent upon measurement and correction through feedback. An organization is viewed as a system consisting of five parts: inputs, process, output, feedback and environment.

 

Since 1940s, researches and information theorists also looked at organizations in a Systems viewpoint. In 1956 Kenneth Bounding propounded General Systems Theory (GST).

 

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Home Loan management

We are a family of five. Me, my wife and my three children.  My eldest son was in 2nd year of college when we decide to buy our own house. I and my wife are both working. That time we have our savings.  So we decided to buy our own house.  That house was payable within 10 years.  And we have already on our third year of payment.  My next son will be graduating in high school and will take up medicine.  At first we still can afford to pay our monthly amortization.  The time comes when we have a hard time to pay that amortization. With our past mistake we are having bad credit ratings. We are not prompt anymore in paying our amortization because we are concentrating for the tuition fees and other needs of my two sons in their college.

 

As we are failing to pay our monthly amortization, they charged us a high interest for the delay of payment.  What I did is I asked my friend about a Mortgage Lending.  Because I know that he is also applied for that.  He recommended me that I should apply for the Home Mortgage Lending Agency they applied for.  He told me that I will not have a hard time to pay for my monthly dues with them.  He told me that they offer two kinds of mortgage.  He chooses to have the adjustable rate mortgage.  The first year of payment, the interest remains the same.  Some problem with the adjustable rate mortgage is that the buyer becomes used to that low mortgage payment.  When the rate changes the prime rate plus a certain extra percentage, payments can double or even triple making it hard for homeowners to afford the rise.   The second type is the fixed rate mortgage.  With this type of mortgage, since it is the most common type of loan the interest rate when applied for a loan was lock-in.  This will be the charged interest rate thought out the length of the mortgage usually fifteen years, twenty years.   It covers the portion of the interest and a small portion of the principal for your mortgage payment. Some time low down payment are key part of this option.

 

I prefer to choose the fixed rate mortgage, because I think it would be easy for me and my wife to pay for that. I asked my friend to go with me and I will apply for Home Mortgage Loan soon.  Now we will have no problem anymore and we will still have our own house. 

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Dysfunctional Aspects

Bureaucracies, particularly in large complex organizations, may have unintended consequences which are often referred to as dysfunctional aspects of bureaucracy. For example, A Commercial real estate or shopping centers electric cabling plan or oceanfront luxury condos layouts require a complex planning. Over the years, there has been much disenchantment with the functioning of bureaucracies which created many antagonists of bureaucracy who prophesied about its gradual demise. The skeptics optimism however, did not fructify. None could propound workable alternatives.

 

As a result, bureaucracies survived notwithstanding the myriad dysfunctional aspects. It is not possible here to list all the dysfunctional functions caused by what Thompson calls as ‘bureaucratic’ behavior. There is also no agreement on whether all these are really counterproductive, because some of them at least are perceived at times as disguised blessing. The more prominent among the dysfunctional aspects include the following: 

  • Rigidity
  • Impersonality
  • Displacement of Objectives
  • Compartmentalization of Activities
  • Empire building
  • Red Tape
             

Rigidity
Critics of bureaucracy argue that rules are often and inflexible, encouraging status quoism and breeding resistance to change. Compliance with rules may provide the cover to avoid responsibility for failures. 

Impersonality
Bureaucracies emphasise mechanical way of doing things, giving primacy to organizational rules and regulations than individual’s needs and emotions. Contractual obligations receive primacy, relegating human relations to a back seat. The office a person holds is important than the person per se.

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Understanding Organizations -3

Anthropological concepts concerning cultural factors are as pertinent as biological theories of evolutions and psychological theories of human behavior. While Arts and Sciences (e.g. humanities and physics and biological sciences) and social sciences (e.g. economics, history and politics) are relevant to understanding, from a behavioral point of view, the trio of anthropology, sociology and psychology have much to offer. As an academic discipline, anthropology, with its widest scope provides the basic behavioral science discipline. Amongst many of the subfields of specialization in anthropology it is cultural anthropology whose main focus is on the study of origins and history of man’s cultures, their evolution and development, and the structure and functioning of human cultures in every place and time that deals with the reciprocal relationship between culture and behavior. Best example of evolution in marketing is online marketing services from discount clicks.

                                 

Sociology deals with the study of society, institutions, the organizations, the group and norms and roles. Modern psychology is concerned with the study of individual human behavior with the objectives of understanding, prediction and control of human behavior. The purpose here is not to discuss the contributions from each of the discipline but to gain insights into the vast expanse of the field of study. What is important; however, is not mere accumulation of knowledge from diverse fields, but the integrations of concepts and techniques developed in many fields. Online marketing services are accumulation of knowledge and integrations of concepts and techniques like seo work.

 

Though formal study of organizations began only in recent decades, ‘organizations’- human organizations –are as old as human civilization itself. Claude S. George explained elements of organizations that were discernible over the past several thousand years. However, interest in formal study and understanding of organizations for purposes of management first found expression over the last 100 years or so. Before Industrial Revolution, when the handicraft and domestic system of production was dominant, the operations of an enterprise used to be under the direct control of the owner. But the developments in the wake of Industrial Revolutions gave birth to scienticism in the nineteenth century.  

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