Nature & Types of Organizing
Nature of an Organization
1. Process: Organization is a systematic process of defining, arranging, and grouping activities and establishing authority relationships among individuals. It creates a framework within which people collaborate to achieve common objectives. This framework assigns activities and delineates relative authorities and responsibilities.
2. Structure: Organizing involves creating a structural framework of duties and responsibilities. This structure consists of relationships at all authority levels and ensures that activities necessary to carry out plans are grouped into administrative units, with clear relationships among executives and workers.
3. Dividing and Grouping Activities: Organization entails dividing and combining activities of an enterprise. Activities are distributed among departments, units, or sections and individuals to benefit from division of labor and specialization. These activities are then integrated to achieve a common purpose.
4. Accomplishment of Goals or Objectives: An organization structure is built around clear goals or objectives. It provides a rational pursuit of these objectives. The structure ensures that all parts work harmoniously towards the common goals of the enterprise.
5. Authority-Responsibility Relationship: An organization structure consists of positions arranged in a hierarchy, each with defined authority and responsibility. Higher positions are given authority to make binding decisions. This hierarchy ensures the organization serves its specific purposes effectively.
6. Human and Material Aspects: Organizations deal with both human and material factors. The human element is crucial. Effective organization involves preparing a logical and simple outline and fitting suitable individuals into it. This ensures both human and material resources are suitable and in order.
In summary, the nature of an organization involves a process of defining and arranging activities, a structural framework for achieving objectives, division and grouping of activities, a clear focus on goals, defined authority-responsibility relationships, and consideration of both human and material aspects. This comprehensive approach ensures effective pursuit of common organizational goals.
Types of Organization
1. Formal Organization: Formal organization refers to the structured and systematic setup where rules and procedures establish work relationships among employees to facilitate smooth functioning and goal achievement.
Advantages:
- Clear Relationships: Defined responsibilities and roles.
- Unity of Command: Maintains a structured chain of command.
- Clarity and Efficiency: Clearly defined duties prevent ambiguity and duplication of efforts.
- Stability: Predictable behaviors and relationships create stability.
- Goal Achievement: Systematic work culture leads to achieving organizational goals.
Disadvantages:
- Slow Decision Making: Needs to follow the chain of command.
- Rigidity: Strict discipline may lead to low talent recognition.
- Neglects Social Aspect: Focuses only on structure and work, ignoring interpersonal relationships.
2. Informal Organization: Informal organization arises naturally within a formal organization when individuals interact frequently, forming social relationships based on common interests and friendships.
Advantages:
- Fast Communication: Does not follow a defined chain, leading to quicker information flow.
- Socialization: Ensures social needs are met, enhancing job satisfaction and a sense of belonging.
- Feedback: Provides true feedback and covers limitations of formal organization.
Disadvantages:
- Rumors: Can lead to the spread of misinformation.
- Uncontrollable: Difficult to manage, which may lead to chaos.
- Group Norms: Behaviors conforming to group norms can disrupt organizational interests.
In summary, formal organizations provide structure, clarity, and stability but can be rigid and slow in decision-making. Informal organizations foster social bonds and faster communication but can lead to uncontrollable situations and potential disruptions. Both types are essential, with informal organizations naturally arising within formal structures to balance and support overall functionality.