Discuss the nature and importance of organisation
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Nature of Organisation:
The nature of the organisation can be discussed by the following two concepts:
1. Organisation as a social system.
2. Formed on the basis of mutual interest.
1. Organisation as a Social System:
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From sociology, we learn that organisations are social systems; consequently activities there in are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status. Their behaviour is influenced by their group as well as their individual drives.
There are two types of social systems exist side by side in organisation. One is formal system and other is the informal social system. The existence of social system implies that the organisational environment is one of the dynamic changes rather than a static set of relations. All parts of the system are interdependent and subject to influence by any other part.
2. Formed on the Basis of Mutual Interest:
Mutual interest is represented by the statement “Organisation need people, and also need organisation.” Organisations have a human purpose. They are formed and maintained on the basis of some mutuality of interest among the participants. People see organizations as a means to help them reach then goals, while organisation needs people to help reach organisational objectives.
If mutuality is lacking, it make no sense to try to assemble a group and develop co-operation, because there is no common base on which to build. Fig 6.1. shows mutual interest provides a super ordinate goal that integrate the efforts of individual groups.
Importance of Organisation:
Organisation is one of the basic functions of management. Organising includes establishing an appropriate structure of relationships among the various positions and individuals in the organisation. A sound organisation structure can contribute to the success of an enterprise in more than one ways. It is as a matter of fact the backbone of management.
The significance of sound organisation will be clear by studying the following factors:
1. It facilitates co-ordination
2. It facilitates management
3. It facilitates growth and diversification
4. It provides scope for training and development
5. It provides for optimum use of technological innovations
6. It ensures an optimum use of human resources.
1. It facilitates co-ordination:
Organisation is an important means of bringing co-ordination among the various departments of the enterprise. It creates clear-cut relationship between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the co-ordination of the activities of different departments.
2. It facilitates management:
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The function of organising is very much necessary for the performance of the other functions of management like planning, staffing, directing and controlling. Poor organisation may result in duplication of work and efforts and some of the important operations may be left out. Good organisation facilitates the performance of various managerial functions by division of labour, consistent delegation or job definition and clarity of authority and responsibility relationship.
3. It facilitates growth and diversification:
Sound organisation helps in the growth and expansion of the enterprise by facilitating its efficient management. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities.
4. It provides scope for training and development:
An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibility whenever need arises.
5. It provides for optimum use of technological innovations:
Sound organisation structure
The nature of the organisation can be discussed by the following two concepts:
1. Organisation as a social system.
2. Formed on the basis of mutual interest.
1. Organisation as a Social System:
ADVERTISEMENTS:
From sociology, we learn that organisations are social systems; consequently activities there in are governed by social laws as well as psychological laws. Just as people have psychological needs, they also have social roles and status. Their behaviour is influenced by their group as well as their individual drives.
There are two types of social systems exist side by side in organisation. One is formal system and other is the informal social system. The existence of social system implies that the organisational environment is one of the dynamic changes rather than a static set of relations. All parts of the system are interdependent and subject to influence by any other part.
2. Formed on the Basis of Mutual Interest:
Mutual interest is represented by the statement “Organisation need people, and also need organisation.” Organisations have a human purpose. They are formed and maintained on the basis of some mutuality of interest among the participants. People see organizations as a means to help them reach then goals, while organisation needs people to help reach organisational objectives.
If mutuality is lacking, it make no sense to try to assemble a group and develop co-operation, because there is no common base on which to build. Fig 6.1. shows mutual interest provides a super ordinate goal that integrate the efforts of individual groups.
Importance of Organisation:
Organisation is one of the basic functions of management. Organising includes establishing an appropriate structure of relationships among the various positions and individuals in the organisation. A sound organisation structure can contribute to the success of an enterprise in more than one ways. It is as a matter of fact the backbone of management.
The significance of sound organisation will be clear by studying the following factors:
1. It facilitates co-ordination
2. It facilitates management
3. It facilitates growth and diversification
4. It provides scope for training and development
5. It provides for optimum use of technological innovations
6. It ensures an optimum use of human resources.
1. It facilitates co-ordination:
Organisation is an important means of bringing co-ordination among the various departments of the enterprise. It creates clear-cut relationship between the departments and helps in laying down balanced emphasis on various activities. It also provides for the channels of communication for the co-ordination of the activities of different departments.
2. It facilitates management:
ADVERTISEMENTS:
The function of organising is very much necessary for the performance of the other functions of management like planning, staffing, directing and controlling. Poor organisation may result in duplication of work and efforts and some of the important operations may be left out. Good organisation facilitates the performance of various managerial functions by division of labour, consistent delegation or job definition and clarity of authority and responsibility relationship.
3. It facilitates growth and diversification:
Sound organisation helps in the growth and expansion of the enterprise by facilitating its efficient management. Sound organisation helps in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities.
4. It provides scope for training and development:
An effective organisation facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibility whenever need arises.
5. It provides for optimum use of technological innovations:
Sound organisation structure
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