ORGANIZATION FUNCTION

CONCEPTS OR INTRODUCTION
The term organization used in many ways. In English speaking countries, a particularly in the USA , the term organization has two popular meanings or usages and these are incompatible

First, there is meaning & usage in which term was employed by the so called classicist management f management. There is a second use of terms in organization which is very general, particular in the USA, but also in great Britain. This is synonymous for the cooperation or undertaking , the human group regarded as a whole.

A company, business, firm, or association. Presently ,the term organization is used in the following ways:
1. 2. 3. 4.

As entity.
As group of people. As structure. As process.

ORGANIZATION ENTITY
Organization are collectivities of people that have been

established foe the pursuit of relatively specific objectives on a

L.M.Prasad_ page no 280-283

more or less on continuous basis Features:

1. 2. 3. 4. 5. 6.

Identifiable aggregation of human beings. Deliberate & conscious creation. Purposive creation. Coordination of the activity. Structure. Rationality

ORGANIZATION AS GROUP OF PEOPLE.

When organization is defined as a group of people ,it may be defined either as a entity or part of it.

Example:

When

we

refer

to

the

informal

organization ,we refer to the various group of

people in an organization who create these groups on their own to satisfy their social needs.

Features:
1.

2.

3.

4.

An organization always refers to people. The organization is composed of people who interact among themselves. The interactions are specified by some sort of structure, that is, who will interact with whom. The interaction are meant to achieve some sort of objectives.

ORGANIZATION AS STRUCTURE.

It prescribed the relationship among individual s and positions that they hold.

Structure tends to be some what permanent with a provision required. of incorporating changes whenever

However, the use of the term structure to denote

organization is not used independently but is

combined with the term organization either in the form of organization structure or structure of organization.

VARIOUS FORMATS OF ORGANIZATIONAL

STRUCTURE
Hierarchical Structure Pyramidal Structure Centralised/Entrepreneurial Collaborative Circular/Flat Matrix Structure

ORGANISATION CHARTS
Hierarchical Structure

Managing Director

Sales Director

Marketing Director

Finance Director

Market Research

Strategy Purchasing Sales Manager Manager

Accounts Manager

ORGANISATION CHARTS
Pyramidal Structure

MD Senior Management Middle Management

Workers

ORGANISATION CHARTS
Centralised/Entrepreneurial

Finance

R&D MD

Production

Marketing

Sales

ORGANISATION CHARTS
Collaborative

Sales

Accounts

Marketing

Production

ORGANISATION CHARTS
Circular/Flat

R&D

Marketing

Finance

Sales

Production

ORGANISATION CHARTS
Matrix Structure

Marketing Sales Project HR Finance Production R&D

ORGANIZATION AS PROCESS.
Classical theorist have used the term organization in the form of process of the organizing through which organization structure can be created.

Whenever it is used as a process ,it is termed as organizing rather than organization.

Elements: 1. Departmentation: Creating departments, division in order to perform various organizational activities. two points always take in to consideration.(1) necessary activities are performed(2 )No duplication. 2. Linking departmentation: After creating different department ,the next issue comes before the management is to decide how various departments of the organization will be linked together so that they operate in a coordination manner. 3. Defining authority & responsibility: When particularly activity or group of activities is assigned to an individual, he become responsible for the performance of those activity. 4. Prescribing authority relationships: Departmental variance Organization to organization

FORMAL & INFORMAL ORGANIZATION

Content: Concepts of formal organization Characteristics of formal organization Features of formal organization Limitation of formal organization Theories of formal organization Factors affecting contingency theory Concepts of informal organization Characteristics of informal organization Features of informal organization Benefits of informal organization Limitation of informal organization Reasons for informal Organization Working of Informal organization Managing Informal organization Linkage formal & informal relationship on the organization chart. Comparative analysis of formal & informal organization Integration of formal & Informal organization Features of good organization structure

CONCEPTS OF FORMAL ORGANIZATION

It is a well defined structure of authority & responsibility that defines delegation of authority & relationship members.

among

various

organizational

Formal organization is

a deliberately designed

structure with formal authority, responsibility, rules,

regulation & channel of communication

CHARACTERISTICS OF FORMAL ORGANIZATION:

It is deliberately designed to achieve particular objectives. T refers to structure of well defined jobs Each bearing definite accountability, responsibility, authority. According to classical theorist, formal organization built on 4 pillars:

Division of labour Scalar & functional process Structure Span of control

FEATURES OF FORMAL ORGANIZATION

Created structure Job oriented Division of work

Departmentation
Formal authority Delegation Coordination Based on principles of organizing

LIMITATION OF FORMAL ORGANIZATION

Loss of initiative Unsatisfied social needs

THEORIES OF FORMAL ORGANIZATION

Classical theory Human & participative theory Contingency theory

Nature of people
The environment Types of task & technology Degree of change & uncertainty

FACTORS AFFECTING CONTINGENCY THEORY

Features Classical theory Participative theory

Nature of people

Lazy, no desire to assume additional responsibility

Mass production of technology

Active with desire to assume & seek additional responsibility

Job- order; continuous technology

Types of task & technology

The environment

Stable

Dynamic

Degree of change & uncertainty

If change s not observed

If change are observed in the internal & external environment

CONCEPTS OF INFORMAL ORGANIZATION

Informal organization have always existed with formal organization.

They arise because of inevitable social & personal needs of individual which can not be satisfied by the principle of formal organization

CHARACTERISTICS OF INFORMAL ORGANIZATION

It is a nature of outcome at the workplace. It is not designed & planned It is created on the basis of some similarity among the members The bases of similarity may be age, Gender, place, origin, caste, place, religion etc.. Membership is voluntary. Behavior of member of informal organization is coordinated and controlled by group norms & not norms of the formal organization

FEATURES OF INFORMAL ORGANIZATION

Unplanned structure Fulfillment of social needs No formal structure

Informal leaders
Informal communication system No rules & regulation No fixed tenure

BENEFITS OF INFORMAL ORGANIZATION

Promote social & cultural values Relief to top manager Supplement to managers capacity Social satisfaction & security Communication Better relationship Solve work related problem Promotes creativity Self control Restraint on managers direction Social satisfaction Quick feedback to manager

LIMITATION OF INFORMAL ORGANIZATION

Conformity( Example: If the group decides not to work overtime, then it is against formal norms & standards, still they have to accept).

Attitude of leader Role conflict Rumor Resistance to change Conflicting goals

REASONS FOR INFORMAL ORGANIZATION

Desire to socialize with others Psychological fatigue & routine task Hierarchical control & communication Various function of informal organization.

Informal organization contribute in several ways to the interest of their members

Protecting their interest Working as regulatory device Protection of cultural values of members Validation of their beliefs Outlet for overcoming frustration Exploitation & development of leadership potential

 Informal

organization contribute in

several ways to the interest formal organization:

Filling

gaps in managerial abilities.

on managers area of operation

Restraint Medium Sources

of communication
of information

WORKING OF INFORMAL ORGANIZATION

Authority structure:

It is based on personal , not positional. Mutual understanding & mutual acceptance of each other & their views. Authority arise because people accept someones ability to control the informal organization. Every member have equal right Satisfaction level higher A leader initiative in action in group. He facilitate consensus He provide link between group & outside world.

Leadership:

The position of the informal leader changes when he is appointed as a superior of the group( Reason: he gets formal authority; he has not only satisfy his subordinates but also achieve organsational goals) Own media & channel of communication Mostly oral. Communication generate the need of informal channel Discussion Grapevine

Communication:

MANAGING INFORMAL ORGANIZATION

Structural approach:

It deals with design of formal organization. The work should be assigned in terms of Meaningful end product. People with all skills necessary to complete assigned work An operating unit should be supplied with full facts on its work. It can adopt flexible & accommodating approach towards informal organization rather than strong repressive approach to solve the problem.

Behavioral approach:

Management creates feelings in minds of people that it is not against the informal organization.

Support the subordinates vies & interest.

Influence of informal organization should be taken in

to account like creating committees, changing work structure etc..

Management can refrain action or crating environment

LINKAGE FORMAL & INFORMAL RELATIONSHIP ON THE ORGANIZATION CHART.

Horizontal Vertical Random

COMPARATIVE ANALYSIS OF FORMAL & INFORMAL

ORGANIZATION

Origin Purpose Size Nature of groups Number of groups Authority Behavior of members Communication Abolition

Nature Structure

Formal organization Formal( Authorityresponsibility relationship) Official authorityresponsibility structure Position Chain is respected & authority delegated by top management

Informal organization No formal ( Authorityresponsibility relationship) People & their relationship Personal Authority comes from personnel knowledge & skills

Emphasis Power Chain of command

Goals Stability flexibility Social acceptance

Organizational goals are Individual goals are important important Stable No flexibility Arise out of formal authority- responsibility structure Created by manager Change in member Highly flexible Arise out of social norms of acceptance & recognition Created by members

Formation

Nature

Formal organization

Informal organization

Objective

Achieve formal goal

Achieve social satisfaction Authority vests with the elected leaders Governed by norms & standards framed by group members

Flow of authority

Top to bottom

Behavior of members

Governed by norms & standards framed by manager

Leadership

Virtue of office position

Voluntary chosen by members No fixed no rules

Governance

Governed by rules & regulation Strict measures

Control

Norms& values are controlling measures

Nature

Formal organization

Informal organization unofficial: vertical & horizontal direction Based on power & status At the will of members

Communication

Official: vertical

Interaction

Based on authority, responsibility, accountability According to legal procedures

Winding up

INTEGRATION OF FORMAL & INFORMAL

ORGANIZATION
Both

are complementary to each other One can not exist without the others. Organization required both form of organization. This can be done in following ways:

Resistance to change & problem conformity can be overcome by educating employees. Role conflict can be reduced by integrating individual goals with organizational goals Formal organization must be flexible

Mangers should ensure group norms are not against formal organization Manager should understand the worker need to interact with each other. Informal channel spread information at a fast speed Manager should allow members to discuss their problems in group. Managers should take leader of informal group in to confidence.

FEATURES OF GOOD ORGANIZATION

STRUCTURE Simplicity Flexibility Clear line of authority Application of ultimate responsibility Proper delegation of authority Minimum possible managerial levels Principles of unity of direction & command Proper emphasis on staff Provision for top management

ORGANIZATIONAL FUNCTIONS
Human Resources Sales and Marketing Research and Development

Production/Operations
Customer Service Finance and Accounts Administration and IT

HUMAN RESOURCES
Recruitment

and retention

Job descriptions Person Specifications

Dismissal Redundancy Motivation Professional

development and training Health and safety and conditions at work Liaison with trade unions

HUMAN RESOURCE FUNCTION

Human resources or Personnels main responsibility is the recruitment, selection, training and development of staff. This will involve developing staff to maximise their potential in a manner that furthers the organisations objectives. Human resources may also need to add the legislation applicable to the country in which they are based In India Payment of wage legislation; Child labour Act etc. Human resources often adopt a welfare role which includes looking after employees while they are at work. They may also create policies that balance organisational needs with those of the employee. They will also interpret employee welfare legislation and ensure that the organisation is connect with the applicable legislation.

SALES AND MARKETING

Market research Promotion strategies Pricing strategies

Sales strategies
The sales team Product advice on new product development, product improvement, target markets

SALES & MARKETING FUNCTION

The marketing department will research customer needs to develop strategy and product to satisfy that customer need. In its research, the marketing department will investigate the market they are aiming at; the type of consumer making up the market (age, background sex etc) and the preferences of the consumer within that market. The marketing department will then need to match consumer preferences with producing a product that is profitable.

Once the product has been designed by the production department marketing will then need to package, advertise, and promote the product.

Sales are responsible for the consumer to purchase the end product, manufactured through marketings research

RESEARCH AND DEVELOPMENT

New product development Product improvements Competitive advantage

Value added
Product testing Efficiency gains Cost savings

RESEARCH & DEVELOPMENT PRINCIPLE

The aim of research and development is to improve existing products, create new and better products, improve production methods, and create effective processes. This will enables the organisation to reduce costs, increase profitability and remain ahead of the competition. As not all research will lead to new/improved products/processes companies will need to allocate a specific portion of their budget to research and development activities.

FINANCE AND ACCOUNTS

Cash

flow

Monitoring income/revenue Monitoring expenditure

Preparing Raising

accounts

finance

Shares Loans

Links

with all other functional areas

FINANCE FUNCTION
The

financial section of the organisation will keep manual/electronic records of money received and paid out by the organisation. This information will then be used to produce various financial statements for tax purposes and to comply with legal requirements. The information will also be used to produce management accounts to enable senior managers to plan and review business strategy.

The finance department or unit may also be responsible for administering employee

expenses and salaries.

For payment of wages the finance department will need to take into account statutory deductions such as tax, and employee contributions such

as pension or loan repayments.

PRODUCTION/OPERATIONS
Acquiring Planning

resources output labour, capital, land costs on future output methods

Monitoring Projections Production

Efficiency

FACTORS OF PRODUCTION

Labour is the mental and or physical effort of employees and can take a variety of forms including filing, lifting, data processing, decision making, and line management. In fact labour is any effort/task an employee needs to undertake in order to produce the product or service. Capital is the machines and tools needed to produce the product or service. This physical capital is purchased through financial capital such as loans, sale of shares in the organisation and use of profit generated by the organisation. Energy is provided through the use of gas, electricity, solar power and steam. Energy is needed to heat/light up the premises, make the machinery work and to ensure that the organisation is a comfortable place for the employees to work in.

Materials in their raw form are needed to produce the product or service. For example a restaurant will need ingredients to make the food that they serve to their customers. Information is the knowledge and expertise needed to produce the end product. For example a restaurant will need to know what ingredients are necessary for each dish, what quantity of ingredient to use, how to mix each ingredient and how long (if at all) to cook each dish.

CUSTOMER SERVICE

Monitoring distribution After-sales service Handling consumer enquiries

Offering advice to consumers

Dealing with customer complaints Publicity and public relations

ADMINISTRATION AND IT
Managing estates cleaning, health and safety, maintenance, security
Reception Clerical work reporting, recording, record keeping, communication Overview of quality control Use of IT systems

ADMINISTRATIVE FUNCTION
This involves dealing with all administrative tasks including mail handling, dealing with enquiries/complaints, catering, and computer services. They will also produce documents (e.g. forms, stationary, and newsletters) for the organisation and maintain the organisations premises and equipment. This function although not always recognised is vital, as it is the thing that holds the organisation together. Without an administrative department, customer complaints would not be resolved, customer orders may not be processed, and the workforce may not have the tools they need to complete their tasks.

ORGANISATION BY TYPE
businesses complex organisation structures National organisation possibly stretches throughout the country Regional could be through a county or wider area (North West, South East, etc.) Local small organisations serving local area or community
Global

BUSINESS ORGANISATION

Authority the right to make decisions and carry out tasks Span of control the number of people a superior is responsible for Chain of Command the relationship between different levels of authority in the business Hierarchy shows the line management in the business and who has specific responsibilities Delegation authority to carry out actions passed from superior to subordinate Empowerment giving responsibilities to people at all levels of the business to make decisions

ORGANIZATION THEORY:
The word theory and its meaning is derived from Greek word Quwpix, meaning theoria, that is, looking at, viewing . Theory is systematically related set of statements, including some law like generalization that is empirically testable and the sort of systematic relatedness is deductive relatedness

 Organization theory is a set of interrelated concepts, definitions and proposition that present a systematic view of behaviour of individual s, groups and subgroups interacting in some relatively patterned sequence of activity ,the intent of which is goal directed

CLASSICAL ORGANIZATION THEORY

MAIN IDEA
OF CLASSICAL ORGANIZATIONAL THEORY

There

is one best way to perform a task

CLASSICAL ORGANIZATIONAL THEORY INCLUDE TWO PERSPECTIVES:

Scientific management focusing on the management of work and workers Administrative management - addressing issues concerning how overall organization should be structured

MAJOR CONTRIBUTORS TO THE CLASSICAL ORGANIZATIONAL THEORY:

Scientific Management:
Frederick

Taylor

Administrative Management:
Henri

Fayol Luther Halsey Gulick Max Weber

INFLUENCED HIM:

Lucian Sharpe impresses Taylor with his focus, concentration, and task commitment

John Griffith teaches Taylor how to be an appreciative, respectful, and admirable working mechanic

MIDVALE STEEL COMPANY

Taylor begins working for the Midvale steel Company in 1878. While there he succeeds in doubling the work of his men, is soon promoted to foreman As foreman, he begins studying productivity as a means of measuring of manufacturing. Later he becomes the chief engineer at Midvale.

INGENUITY AND ACCOMPLISHMENTS

Creates systems to gain maximum efficiency from workers and machines in the factory. Focuses on time and motion studies to learn how to complete a task in the least amount of time. Becomes consulting engineer for many other companies PublishesThe Principles of Scientific Management

KEY POINTS OF SCIENTIFIC MANAGEMENT

1.

2. 3.

4.

Scientific Job Analysis observation, data gathering, and careful measurement determine the one best way to perform each job Selection of Personnel scientifically select and then train, teach, and develop workers Management Cooperation managers should cooperate with workers to ensure that all work is done in accordance with the principles of the science that developed the plan Functional Supervising managers assume planning, organizing, and decision-making activities, and workers perform jobs

HENRI FAYOL
Engineer

and French industrialist In France works as a managing director in coal-mining organization Recognizes to the management principles rather than personal traits While others shared this belief, Fayol was the first to identify management as a continuous process of evaluation.

FAYOLS 5 MANAGEMENT FUNCTIONS

Fundamental roles performed by all managers: Planning Organizing Commanding Coordinating Controlling

Additionally Fayol recognizes fourteen principles that should guide the management of organizations.

FAYOLS 14 PRINCIPLES:
1.

2.

3.

Division of Work improves efficiency through a reduction of waste, increased output, and simplification of job training Authority and Responsibilityauthority: the right to give orders and the power to extract obedience responsibility: the obligation to carry out assigned duties Disciplinerespect for the rules that govern the organization

4. Unity of Commandan employee should receive orders from one superior only 5. Unity of Directiongrouping of similar activities that are directed to a single goal under one manager 6. Subordination of Individual Interests to the General Interestinterests of individuals and groups should not take precedence over the interests of the organization as a whole. 7. Remuneration of Personnelpayment should be fair and satisfactory for employees and the organization 8. Centralizationmanagers retain final responsibility subordinates maintain enough responsibility to accomplish their tasks

9. Scalar Chain (Line of Authority)the chain of command from the ultimate authority to the lowest 10. Orderpeople and supplies should be in the right place at the right time 11. Equitymanagers should treat employees fairly and equally 12. Stability of Tenure of Personnelmanagerial practices that encourage long-term commitment from employees create a stable workforce and therefore a successful organization 13. Initiativeemployees should be encouraged to develop and carry out improvement plans 14. Esprit de Corpsmanagers should foster and maintain teamwork, team spirit, and a sense of unity among employees

LUTHER HALSEY GULICK (1892-1992)

A

specialist in municipal finance and administration Gulick works with the Institute of Public Administration, professor of municipal science and administration at Columbia, and serves on Franklin D. Roosevelts Committee of Government Administration Expands Fayols five management functions into seven functions:

1.

2.

3.

4.

Planning - developing an outline of the things that must be accomplished and the methods for accomplishing them Organizing - establishes the formal structure of authority through which work subdivisions are arranged, defined, and coordinated to implement the plan Staffing - selecting, training, and developing the staff and maintaining favorable working conditions Directing - the continuous task of making decisions, communicating and implementing decisions, and evaluating subordinates properly

5.

6.

7.

Coordinating - all activities and efforts needed to bind together the organization in order to achieve a common goal Reporting - verifies progress through records, research, and inspection; ensures that things happen according to plan; takes any corrective action when necessary; and keeps those to whom the chief executive is responsible informed Budgeting - all activities that accompany budgeting, including fiscal planning, accounting, and control

MAX WEBER (1864-1920)

German sociologist Weber first describes the concept of bureaucracy an ideal form of organizational structure He defines bureaucratic administration as the exercise of control on the basis of knowledge Weber states, Power is principally identify within organizations by the process of control

Weber uses and defines the terms authority and power as: Power: any relationship within which one person could impose his will, regardless of any resistance from the other.

Authority: existed when there was a belief in the legitimacy of that power.

Weber classifies organizations according to the legitimacy of their power and uses three basic classifications:

Charismatic Authority: based on the divine or outstanding characteristic of the individual. Traditional Authority: essentially a respect for customs. Rational Legal Authority: based on a code or set of rules.

Weber recognizes that rational legal authority is used in the most efficient form of organization because:
A

legal code can be established which can claim obedience from members of the organization law is a system of abstract rules which are applied to particular cases; and administration looks after the interests of the organization within the limits of that law.

The

The manager or the authority additionally follows the impersonal order

Membership is key to law obedience

Obedience is derived not from the person administering the law, but rather to the impersonal order that installed the persons authority

Weber outlined his ideal bureaucracy as defined by the following parameters:

A

continuous system of authorized jobs maintained by regulations it defined as sphere of competence, based on its divisions of labor stated chain of command of offices: a consistent organization of supervision based on distinctive levels of authority

Specialization:

Rules: an all system of directives which govern behavior: rules may require train and manage
Impersonality: no partiality, either for or against, clients, workers, or administrators Free selection of appointed officials: equal opportunity based on education and professional qualification

(a)

A tendency to a leveling of social classes by allowing a wide range of recruits with technical competence to be taken by any organization

(b) Describe status because of the time required to achieve the necessary technical training
(c) Greater degree of social equality.

COMMON CRITICISMS OF CLASSICAL ORGANIZATIONAL THEORY

Classical principles of formal organization may lead to a work environment in which:
Employees have minimal power over their jobs and working conditions Subordination, passivity and dependence are expected work to a short term perspective Employees are lead to mediocrity Working conditions produce to psychological failure as a result of the belief that they are lower class employees performing tasks

NEO CLASSICAL ORGANIZATION

THEORY

Neo classical theory has started its development from the findings of famous Hawthorne experiment. Its essence contained in two parts: I) Organizational situation viewed in essence of social, economic & technical terms. II) The social process of group behavior. The neo classical theory emphasized on completing for some deficiency in classical theory.

PROPOSITION OF THE NEO CLASSICAL

THEORY The organization is social system. The social environment of the job affects people & is also affected by them and not by management alone. Informal organization also exists within the formal organization and it affects and is affected by the formal organization. Human being is not totally rational and his behavior can be predicted in terms of social and psychological factors. Human being has diverse motivational pattern and tries to fulfill different types of needs.

Human being has diverse motivational pattern and tries to fulfill different types of needs. Often there is conflict between individual and organizational objectives which increase the importance of integration between individual & organization. Communication is necessary as it carries information necessary for the organizational functioning and conveys the feelings & sentiments of people who work in the organization. Team work is essential for cooperation among people. This is not achieved automatically but has to be achieved through behavioral approach.

NEO CLASSICAL THEORY AND ORGANIZATIONAL DESIGN:

Theory is emphasize on flat structure,decenteralisation,and provision of informal organization. Flat Structure: It suggest the flat structure rather than the toll structure because it against the human beings. It suffer from problems like communication problem, Lack of motivation, and being expensive. It is free from hierarchy control. Decentralization: Decentralization closely related to flat structure as wide span of control will result in to horizontal increase in people.

Informal Organization: It create to overcome the limitation of formal organization to fulfill the need particularly psychological needs. Since manager can not control the informal organisation,he should make the best use of this in achieving the organizational objective.

APPRAISAL OF NEO CLASSICAL THEORY:

Neo classical theory has given a new dimension to the design and management of the organization. It recognized such important factor which were almost ignored by the classical approach like informal organization, informal leader, group norms, on economic motivation,irratioanl behavior and so on. All this factors important to understand the concept of organization behavior. Neo classical theory ha tried to overcome the deficiency of classical theory

PROBLEMS IN NEO CLASSICAL THEORY

Lacks of unified approach of the organization theory. This is the modification of classical concepts & models. Most of the assumption of neo classical theory on which it bases its recommendation for organizational design and operation are not true. The assumption that it is always possible to find out a solution that satisfies every body is not true. Conflict of interest among various group in the organization that are structural and not merely psychological.

MODERN ORGANIZATION THEORY

System approach Contingency approach

SYSTEM APPROACH
Modern organization theory is a sophisticated and scientific way of explaining a complex organization. This theory is comparatively systematic and highly constructive. Modern theory treated as a synonyms of the system approach. For example, Scott observe that: the distinctive qualities of modern organization theory are its conceptual analytical base, it depend on empirical research data and, above all, its integrative nature. These qualities are framed in a philosophy which accepts that the only meaningful way to study organization is to study it as system

SUBSYSTEM IN ORGANIZATION

Every system has subsystem. Which are interrelated to constitute system as entity. Each subsystem is identified by certain objectives,precessess,roles,structures and norms of conduct. Subsystem interact and through the interactions create new pattern of behavior that are separate from but related to the pattern specific by original system. these is known as emerged behavior. When any of the subsystem fails to function properly, the impact on other subsystems is immediate and affect the total organization

Seiler has identify the 4 components of organization system:

Human inputs. Technological inputs. Organizational inputs. Social structure & norms.

Kast & Rosenzwieng have identified five subsystem:

Goals & value subsystem. Psychological subsystem. Technical subsystem Structural subsystem Managerial subsystem.

Carzo & Yanouzas have identified 3 subsystem

Technical subsystem Social subsystem Power subsystem.

Technical subsystem: It refers to the knowledge required for the performance of the task including the techniques used in the transformation of input in to output. Social Subsystem: Each organiosation has the social subsystem which composed of the individual and groups in interction.When people perform task they set informal relationship. Power subsystem: Power is ones ability to influence other to achieve desire result. Power distribution in organization both formal & informal.

Managerial subsystem: When organizational units are arranges and operated as system, each subsystem is viewed as a distinct entity and its relationship or contribution to the next level in the hierarchical structure is programmed and measured ,but always in consideration of total system.

SYSTEM APPROACH OF THE ORGANIZATIONAL

DESIGN

Modern organization model: System approach of organizational design recognize the problems involved in managing large and complex organization. It has replaced the classical & neoclassical models because they have been too inadequate to solve the todays problem. The approach recognize the need for flexibility & adoptability of organization structure and various new models have been suggested such as project organization, Matrix organization etc.

Lateral Relationship: System approach related to the lateral relationship among people in organization. This emphasis is in contrast to the vertical relationship emphasized by the classical & horizontal relationship by the neo classical approach.Laterl relationship achieve coordination more effectively by eliminating the hierarchical control.

Cybernetics: it is important function for the control function. The word come from the Greek Kybernetes or Helmsman related to the direction of. It involves the communication and the control. It primarily applied in the mechanist engineering problems, its model of feedback and regulation has significance for social system also.

CONTINGENCY APPROACH
It is an extension of the system approach. It suggest the structure of an organization. Proper organization structure is one with appropriate internal states and processes of the organization. It relates the external environment & internal needs.

FUNCTIONAL ORGANIZATION
There are no. of specialist each having authority over a particular function or a group of related function throughout the organization. Exampe,human resource department would recruit ,train & develop people required for all other departments of the organization. It used in higher as well as in lower level management. Higher level= grouping in to major functional department under an expert executive

CHARACTERISTICS
Specialist of department and give order relating to the specific function. He is King over his particular function. Whole task divided according to the specified function. Specialist often operate with considerable independence. Identical function of various departments in the organization are performed by specialists.

LINE ORGANIZATION
In a line organization, top management has complete control, and the chain of command is clear and simple. Examples of line organizations are small businesses in which the top manager, often the owner, is positioned at the top of the organizational structure and has clear "lines" of distinction between him and his subordinates.

TYPES OF LINE ORGANIZATION

Pure line organization: all person at a given level perform the same type of work. The division solely purpose of control & direction.

Departmental line organization: Enterprise divided in to the several different department which are convenient for control purpose. Line of authority flow from top to bottom.

LINE & STAFF ORGANIZATION

The line-and-staff organization combines the line organization with staff departments that support and advise line departments. Most medium and large-sized firms exhibit line-andstaff organizational structures. The distinguishing characteristic between simple line organizations and line-and-staff organizations is the multiple layers of management within lineand-staff organizations

ADVANTAGE & DISADVANTAGE OF LINE &

STAFF ORGANIZATION An advantage of a line-and-staff organization is the availability of technical specialists. Staff experts in specific areas are incorporated into the formal chain of command. A disadvantage of a line-and-staff organization is conflict between line and staff personnel.

LINE AUTHORITY
Line authority flows down the chain of command. For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, and it gives the vice president of finance the right to request a certain report from a department head. Therefore, line authority gives an individual a certain degree of power relating to the performance of an organizational task.

STAFF AUTHORITY

Staff authority is the right to advise or counsel those with line authority. For example, human resource department employees help other departments by selecting and developing a qualified workforce. A quality control manager aids a production manager by determining the acceptable quality level of products or services at a manufacturing company, initiating quality programs, and carrying out statistical analysis to ensure compliance with quality standards. Therefore, staff authority gives staff personnel the right to offer advice in an effort to improve line operations.

PROJECT ORGANIZATION
Project structure consist of a no. of horizontal organizational units to complete project of long duration. Therefore, a team of specialist from different areas is created for each project. Size varies from project to project. The activities of the project team are coordinated by the project manager who has the authority to obtain advice and assistance of experts both inside & outside the organization.

MATRIX ORGANIZATION
Matrix organization or grid organization is a hybrid structure combining the two complementary structures-functional departmentation with pure project structure. Functional structure= permanent feature of matrix organization & retain authority for the overall operation of the functional units. Project department= created whenever specific project require a high degree of technical skill and other resources for temporary period. Functional department= vertical chain of command Project department= horizontal chain of command

Matrix organization has been developed to meet of large and complex organization which requires a structure more flexible and technically oriented rather than the functional structure. Project manager authority= flows horizontally Functional manager authority=flows vertically

COMMITTEE ORGANIZATION

A committee is a group of individuals who meet for the purpose of effecting of integration of ideas concerning a solution for dome problem.
A committee consist of a group of specifically designated person to perform some administrative acts. It functions only as a group and requires the free interchange of ideas among its member.

It is not a separate type of the organization. A committee is a device of attaching a group of individuals to line department. It is a group of people ,usually on the same authoritative level. The function of the committee is the assignment of a task t a group rather than to one or more individuals.

TYPES OF COMMITTEES

Advisory committee:
These are staff committee. Play the role of advisor for the line executives. Its work to search problem or issue for the line executives The committee collect the all the relevant information ,analyze it and after scrutinize the problem from the all possible angels, arrive at the conclusion on the basis of which it sends a report to line executive for course of action.

Executive committee: It has the executive power of decision making, policy framing,organising,directing and controlling the activities. Some committees are set up at the top level of the organization. Fact finding committee: This type of committee is formed only for the purpose of collecting information on a particular subject. A detailed report is submitted with recommendation to the management. This is most common committee formed in any organization.

FUNCTION OF COMMITTEE

To collect the information from different sources and the arrange the information orderly.

The collected information is critically analyzed. To draft a detailed report containing the recommendation for the purpose of implementation.

To formulate the standard of performance for the

purpose of evaluation of actual performance in future.

To take a decision if the committee is requested to do so.

Framing the policies of the organization. The committee can select personnel to carryout the business operation.

Directing and controlling the officers at regular intervals

to achieve the goals.

TYPES OF ORGANIZATION STRUCTURE

RELATIONSHIP

Line Organization/Scalar organization: It represent the direct vertical relationship through which authority flows. Authority flows from top to bottom.
Pure line structure: All person at a given level perform the same type of work. It is use for control and direction. all workers perform the same type of work. Departmental line Organization: Here the organization divided in to different departments. Manager do not exchange instruction with each other.

Functional Organization: In organization there are number of specialists each having authority over a particular function or a group of related function throughout the organization.