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Organisation is the foundation upon which the whole structure of management is built.
Organisation is related with developing a frame work where the total work is divided
into manageable components in order to facilitate the achievement of objectives or
goals. Thus, organisation is the structure or mechanism (machinery) that enables living
things to work together. In a static sense, an organisation is a structure or machinery
manned by group of individuals who are working together towards a common goal.
Alike ‘management’, the term ‘organisation’ has also been used in a number of ways.
Broadly speaking, the term ‘organisation’ is used in four different senses: as a process,
as a structure of relationship, as a group of persons and as a system, as given below:
In short, organizing is the determining, grouping and arranging of the various activities
deemed necessary for the attainment of the objectives, the assigning of people to those
activities, the providing of suitable physical factors of environment and the indicating
of the relative authority delegated to each individual charged with the execution of each
respective activity.
Definitions of Organisation
Different authors have defined organisation in different ways. The main definitions of
organisation are as follows:
For companies to achieve long-term success, they must create and maintain healthy environments
in the workplace. Healthy organizations understand that it takes a collaborative effort to compete in
their market segment and produce continuous profits. Healthy organizations have certain
characteristics ingrained in their corporate culture. Recognizing and understanding the
characteristics of healthy organizations can help you detect problems in your company if it is
unprofitable and take corrective steps to operate a successful business.
Teamwork
Another characteristic is teamwork. Healthy companies know how to develop teams that collaborate to achieve
common goals. Employees and managers readily offer their assistance to each other to meet corporate
objectives.
Healthy organizations possess high employee morale. Employees value their positions in the organizations and
desire to work there for a long time. Productivity is high and organizational events are enjoyable and
successful.
Companies provide on-the-job training and opportunities for employees to enhance their work-related skills.
Organizations bring in other individuals to provide necessary departmental and corporate-wide training.
Companies also offer opportunities to pursue certification and continual education.
Leadership
Good leadership is one of the main characteristics of a healthy organization. Employees have good
relationships with management that are based on trust. Managers know how to get employees to function
together. When correction is needed, employees readily accept the constructive criticism offered by leaders.
Companies confront poor performance instead of ignoring it. Organizations take corrective actions to improve
performance. Upper-level management values the input of employees who make suggestions on how to
improve productivity and achieve high performance rates. Companies may even bring in specialists to detect
problems and offer solutions.
Understanding Risks
Healthy organizations understand the risks they are open to and take the necessary steps to protect themselves
against them. When an event happens due to organizational risks, a healthy organization learns from the event.
Companies use precaution but understand that risks are necessary to facilitate growth.
Companies possess a sense of order and organizational structure. The structure and order of the organization
does not limit innovation and growth. Employees do not mind complying to the company's order because they
understand it and see the benefits of its implementation.
Organizations create and implement company policies that are readily available to their employees. Healthy
organizations follow the policies and regulations of local, state and federal governments. When employees or
managers break policies, the issue is dealt with immediately and in a professional manner.
Source: http://smallbusiness.chron.com/top-10-characteristics-healthy-organization-
20452.html
The well-known industrialist of U.S.A. late Andrew Canrnegi, when sold his famous
‘United State Steel Corporation’, showed his confidence in organisation by uttering the
following words, “Take away our factories, take away our trade, our avenues of
transportation, our money, leave nothing but our organisation, and in four years, we
shall re-established ourselves.” Since ages and in every walk of life, organisation has
been playing a vital role. The significance or main advantages of organisation are as
follows:
Source: http://www.publishyourarticles.net/knowledge-hub/business-
studies/organisation/978/
Characteristics of Organisation:
Different authors look at the word ‘organisation’ from their own angle.
One thing which is common in all the viewpoints is that organisation
is the establishment of authority relationship among persons so that it
helps in the achievement of organisational objectives.
2. Co-Ordination:
Co-ordination of various activities is as essential as their division. It
helps in integrating and harmonising various activities. Co-ordination
also avoids duplications and delays. In fact, various functions in an
organisation depend upon one another and the performance of one
influences the other. Unless all of them are properly coordinated, the
performance of all segments is adversely affected.
3. Common Objectives:
All organisational structure is a means towards the achievement of
enterprise goals. The goals of various segments lead to the
achievement of major business goals. The organisational structure
should build around common and clear cut objectives. This will help in
their proper accomplishment.
4. Co-operative Relationship:
An organisation creates co-operative relationship among various
members of the group. An organisation cannot be constituted by one
person. It requires at least two or more persons. Organisation is a
system which helps in creating meaningful relationship among
persons. The relationship should be both vertical and horizontal
among members of various departments. The structure should be
designed that it motivates people to perform their part of work
together.
Planning: This step involves mapping out exactly how to achieve a particular
goal. Say, for example, that the organization's goal is to improve company sales.
The manager first needs to decide which steps are necessary to accomplish that
goal. These steps may include increasing advertising, inventory, and sales staff.
These necessary steps are developed into a plan. When the plan is in place, the
manager can follow it to accomplish the goal of improving company sales.
Organizing: After a plan is in place, a manager needs to organize her team and
materials according to her plan. Assigning work and granting authority are two
important elements of organizing.
Staffing: After a manager discerns his area's needs, he may decide to beef up
his staffing by recruiting, selecting, training, and developing employees. A
manager in a large organization often works with the company's human
resources department to accomplish this goal.
Leading: A manager needs to do more than just plan, organize, and staff her
team to achieve a goal. She must also lead. Leading involves motivating,
communicating, guiding, and encouraging. It requires the manager to coach,
assist, and problem solve with employees.
Controlling: After the other elements are in place, a manager's job is not
finished. He needs to continuously check results against goals and take any
corrective actions necessary to make sure that his area's plans remain on track.
All managers at all levels of every organization perform these functions, but the amount
of time a manager spends on each one depends on both the level of management and
the specific organization.
In addition, managers' schedules are usually jam‐packed. Whether they're busy with
employee meetings, unexpected problems, or strategy sessions, managers often find
little spare time on their calendars. (And that doesn't even include responding to e‐mail!)
In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of
ten roles that a manager fills. These roles fall into three categories:
Table 1 contains a more in‐depth look at each category of roles that help managers
carry out all five functions described in the preceding “Functions of Managers” section.
Not everyone can be a manager. Certain skills, or abilities to translate knowledge into
action that results in desired performance, are required to help other employees
become more productive. These skills fall under the following categories:
Technical: This skill requires the ability to use a special proficiency or expertise
to perform particular tasks. Accountants, engineers, market researchers, and
computer scientists, as examples, possess technical skills. Managers acquire
these skills initially through formal education and then further develop them
through training and job experience. Technical skills are most important at lower
levels of management.
Human: This skill demonstrates the ability to work well in cooperation with
others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and
genuine involvement in interpersonal relationships. A manager with good human
skills has a high degree of self‐awareness and a capacity to understand or
empathize with the feelings of others. Some managers are naturally born with
great human skills, while others improve their skills through classes or
experience. No matter how human skills are acquired, they're critical for all
managers because of the highly interpersonal nature of managerial work.
Conceptual: This skill calls for the ability to think analytically. Analytical skills
enable managers to break down problems into smaller parts, to see the relations
among the parts, and to recognize the implications of any one problem for others.
As managers assume ever‐higher responsibilities in organizations, they must
deal with more ambiguous problems that have long‐term consequences. Again,
managers may acquire these skills initially through formal education and then
further develop them by training and job experience. The higher the management
level, the more important conceptual skills become.
Although all three categories contain skills essential for managers, their relative
importance tends to vary by level of managerial responsibility.
Source: https://www.cliffsnotes.com/study-guides/principles-of-management/the-
nature-of-management/functions-of-managers
Planning
The planning function of management controls all the planning that allows the organization to run
smoothly. Planning involves defining a goal and determining the most effective course of action
needed to reach that goal. Typically, planning involves flexibility, as the planner must coordinate with
all levels of management and leadership in the organization. Planning also involves knowledge of
the company’s resources and the future objectives of the business.
Organizing
The organizing function of leadership controls the overall structure of the company. The
organizational structure is the foundation of a company; without this structure, the day-to-day
operation of the business becomes difficult and unsuccessful. Organizing involves designating tasks
and responsibilities to employees with the specific skill sets needed to complete the tasks.
Organizing also involves developing the organizational structure and chain of command within the
company.
Staffing
The staffing function of management controls all recruitment and personnel needs of the organization. The
main purpose of staffing is to hire the right people for the right jobs to achieve the objectives of the
organization. Staffing involves more than just recruitment; staffing also encompasses training and
development, performance appraisals, promotions and transfers. Without the staffing function, the business
would fail because the business would not be properly staffed to meet its goals.
Coordinating
The coordinating function of leadership controls all the organizing, planning and staffing activities of the
company and ensures all activities function together for the good of the organization. Coordinating typically
takes place in meetings and other planning sessions with the department heads of the company to ensure all
departments are on the same page in terms of objectives and goals. Coordinating involves communication,
supervision and direction by management.
Controlling
The controlling function of management is useful for ensuring all other functions of the organization are in
place and are operating successfully. Controlling involves establishing performance standards and monitoring
the output of employees to ensure each employee’s performance meets those standards. The controlling
process often leads to the identification of situations and problems that need to be addressed by creating new
performance standards. The level of performance affects the success of all aspects of the organization.
Leadership
Leadership is defined as “the process whereby one individual influences other group members
towards the attainment of defined group or organizational goals.”
According to Hollander, “Leadership is a process of influence between a leader and those who are
followers”.
Nature of a Leadership:
Qualities of a Leader
1. Intelligence
2. Sound Physique
3. Responsibility
4. Trustworthy
5. Spirit of Enthusiasm
6. Confidence
7. Must do Things in Systematic manner
8. Significant Level of Tolerance
9. Focused
10. Committed to Excellence
Effectiveness of leaders
Task achievement
Development of individuals
Building the team
Make the vision tangible
What are the advantages and disadvantages of
transactional leadership?
Advantage of Transactional Leadership
1. Employee Motivation
2. Achievable Goals
With short-term planning as part of this leadership style, management ensures that its
visions for the company or organization will be realized. This is for that reason that
goals and objectives only require a shorter time table to materialize. Consequently, these
are easier to fulfill and less demoralizing for employees. By making achievements more
accessible in a short period of time, members of the team are more motivated to perform
and at the same time be more self-confident. This is partly because of the autonomy
given to subordinates makes them able to carry out their tasks without having to be
conscious that eyes are directly on them.
3. Clear Structure
1. Unyielding Leadership
Transactional leadership is a style of leadership that not only has a clear structure. It
also has unbendable policies and rules. Despite the rewards members of organizations
can expect and the kind of autonomy or independence they have in doing their tasks,
they have to work within the rules of the management. Going against these policies or
instructions from superiors can lead to negative implications like suspension and even
termination. This is because a transactional leader tells his or her subordinates what to
do and is in no way accepting complaints or insubordination of any kind. Because of this
inflexibility, the leader will find it difficult to adjust to certain situations and somehow
limits creativity.
Since this leadership style is rigid and not into bending principles and rules as well as
listening to suggestions from people under the management, this hampers creativity
from members of the team who might have sound and effective recommendations for
the betterment of the organization. The short-term goals and structured policies make it
hard for transactional leaders to make changes and be open to ideas from others that do
not go with their existing goals. And since the company or organization relies on a
transactional leader, if this person leaves, it can affect the business because most of the
employees are have not been given the opportunity to become leaders but merely
followers.
3. Accountability of Employees
4. Insensitivity
Since transactional leaders operate within rules that cannot be changed, managers with
this style of leadership do not really put the emotions of employees in consideration so
long as tasks are done. Employees are given clear and detailed instructions but they are
also expected to perform these tasks efficiently and on time. What transactional
managers have with their subordinates are more of transitory working relationships
than emotional ones. As a result, employees also become insensitive to demonstrating
concern for the company but merely performers who are motivated by
rewards.Transactional leadership still remains to be popular among the leadership
styles because of its reward and punishment principle that motivate employees to be
productive. However, it also has its share of criticisms because of the way it controls its
employees’ performance and hampers the leadership and creativity skills of the
workforce.
TRAIT LEADERS
Trait theorist refers to people like Father of nation M.K. Gandhi, Indira Gandhi, Margrat
Thracher, Nelson Mandela, Virgin Group CEO Richard Branson, Apple Co-founder
Steve Jobs, Ratan Tata of the Tata Group, Azim Premji of Wipro, Narayana Murthy of
Infosys etc.
Desire to Lead: The leader is that who has a desire to lead the people. And Gandhiji leaded the
Indian public. When he gone to the South Africa and the see condition of black people, he
decided he will destroy these inequalities.
Honesty and Integrity: Gandhiji was very honest as we all know and he was honest to his
work, to his family, to his goal and to the Indians. He saw all people of India equal. It is very
essential to a leader to have honesty towards his goal and the work.
Self confidence: Gandhiji was very confident that he will succeed to provide the freedom to
all of us. He worked hard and so smartly to achieve his goal of freedom. He did Dandi March in
1929 to make the salt in Gujarat that shows his self confidence..
Intelligence: Gandhiji was very intelligent leader. As he gave principle of Truth and Nonviolent
to the people. He had a good negotiation skill. He was well educated person. He used to take
decisions efficiently.
Job relevant knowledge: M.K. Gandhi was clearly knew that what should he do, when
should he do the tasks to achieve the objective. The leaders should have the job relevant
knowledge. Besides it Gandhiji had done pune pact, Bharat chhodo andolan, Sattyagrah etc. that
shows his leadership skill which him the greatest leader.Today, also people follow him.