👆Above are subtopic for Commerce Optional Paper 2 of Organisation theory
Organisation Design & Challenges in Organisational Design
Note- Students are advised to read only that subtopics for UPSC commerce Optional Preparation.
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Organisation Design & Challenges in Organisational Design
Note- Students are advised to read only that subtopics for UPSC commerce Optional Preparation.
😊 This will be very useful for students of Commerce Optional.
For more information
Contact @cadhananjay
Features of Formal Organisation:
Formal organisation has the following features:
1. Deliberately created structure:It is a deliberately created structure that defines official relationships amongst people working at different job positions.
2. Job-oriented:
It focuses more on jobs than people. It allocates jobs to people and defines the structure of relationships to achieve the formal organisational objectives.
3. Division of work:
Work is divided into smaller units and assigned to individuals on the basis of their skills and abilities. Division of work results in specialisation and increases organisational output.
4. Departmentation:
Departmentation is the foundation of organisation structure, that is, organisation structure depends upon departmentation. Departmentation refers to division of work into smaller units and their re-grouping into bigger units (departments) on the basis of similarity of activities. The functional departmentation divides organisation structure into production, finance, personnel and marketing departments. Departmentation helps in fixing responsibility of various departmental heads.
5. Formal authority:
People exercise authority by virtue of their position in the organisational hierarchy. Authority is linked to position and through it, in the person occupying the position. It involves the right to command, to perform, to make decisions and spend resources.
6. Delegation:
Work is officially delegated from top to lower levels. The work load is divided into units, a part is assigned to subordinates with authority to carry out the assigned task. The concept of division of work and its assignment to people down the scalar chain is called delegation.
“Delegation is the process by which a manager assigns tasks and authority to subordinates who accept responsibility for those jobs.”
“Delegation is a process the manager uses in distributing work to the subordinates.”
7. Coordination:
Managers integrate the activities of individuals and units into a concerted effort so that departments and individuals work towards a common goal. Managers coordinate the activities of organisation by communicating organisational goals to each department, setting departmental goals and linking the performance of each department with others so that all the departments collectively contribute to organisational goals. Coordination is “the process of linking the activities of the various departments of the organisation”.
8. Principles of organising:
Formal organisation is based on formal principles of organising, that is, unity of objectives, organisational efficiency, division of labour, authority – responsibility, delegation, scalar chain, span of control, unity of command, balance, flexibility, continuity, exception, simplicity, departmentation, decentralisation, unity of direction and co-operation.
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Formal organisation has the following features:
1. Deliberately created structure:It is a deliberately created structure that defines official relationships amongst people working at different job positions.
2. Job-oriented:
It focuses more on jobs than people. It allocates jobs to people and defines the structure of relationships to achieve the formal organisational objectives.
3. Division of work:
Work is divided into smaller units and assigned to individuals on the basis of their skills and abilities. Division of work results in specialisation and increases organisational output.
4. Departmentation:
Departmentation is the foundation of organisation structure, that is, organisation structure depends upon departmentation. Departmentation refers to division of work into smaller units and their re-grouping into bigger units (departments) on the basis of similarity of activities. The functional departmentation divides organisation structure into production, finance, personnel and marketing departments. Departmentation helps in fixing responsibility of various departmental heads.
5. Formal authority:
People exercise authority by virtue of their position in the organisational hierarchy. Authority is linked to position and through it, in the person occupying the position. It involves the right to command, to perform, to make decisions and spend resources.
6. Delegation:
Work is officially delegated from top to lower levels. The work load is divided into units, a part is assigned to subordinates with authority to carry out the assigned task. The concept of division of work and its assignment to people down the scalar chain is called delegation.
“Delegation is the process by which a manager assigns tasks and authority to subordinates who accept responsibility for those jobs.”
“Delegation is a process the manager uses in distributing work to the subordinates.”
7. Coordination:
Managers integrate the activities of individuals and units into a concerted effort so that departments and individuals work towards a common goal. Managers coordinate the activities of organisation by communicating organisational goals to each department, setting departmental goals and linking the performance of each department with others so that all the departments collectively contribute to organisational goals. Coordination is “the process of linking the activities of the various departments of the organisation”.
8. Principles of organising:
Formal organisation is based on formal principles of organising, that is, unity of objectives, organisational efficiency, division of labour, authority – responsibility, delegation, scalar chain, span of control, unity of command, balance, flexibility, continuity, exception, simplicity, departmentation, decentralisation, unity of direction and co-operation.
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