Download The Organisation

Clyde Stewart
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Objectives of the Presentation
 At the end of the presentation participants
should be able to
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Define the term organisation
Discuss various concepts of organisation
Identify the elements of vision and mission
Discuss the delegation process.

Definition of Organisation
 Basically, an organisation in its simplest form is
group of people intentionally organised to
accomplish an overall, common goal or set of
goals.
 A social units or human groupings deliberately
established for the accomplishment of specific
objectives. • An organisation is thus the result of
the grouping of work and the allocation of duties,
responsibilities and authority to achieve specific
goals.
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Definition of Organisation
 A social unit of people that is structured and managed
to meet a need or to pursue collective goals. All
organisations have a management structure that
determines relationships between the different
activities and the members, and subdivides and
assigns roles, responsibilities, and authority to carry
out different tasks. Organisations are open systems-they affect and are affected by their environment.
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What is a Concept?
 A general idea or understanding of something
 A general notion or idea; conception
 An idea of how something is, or how something
should be done
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What are concepts of Organisation?
 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:
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Concepts of Organisation
 Organisation as a Process: In this first sense,
organisation is treated as a dynamic process and a
managerial activity which is essential for planning
the utilisation of company’s resources, plant an
equipment materials, money and people to
accomplish the various objectives.
 Organisation as a Framework of Relationship: In
the second sense organisation refers to the
structure of relationships and among position jobs
which is created to release certain objectives.
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Concepts of Organisation
 Organisation as a Group of persons: In the third
sense, organisation is very often viewed as a
group of persons contributing their efforts
towards certain goals. Organisation begins when
people combine their efforts for some common
purpose. It is a universal truth that an individual is
unable ability and resources. Barnard has defined
‘Organisation’ as an identifiable group of people
contributing their efforts towards the attainment
of goals.
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Concepts of Organisation
 Organisation as a System: In the fourth sense,
the organisation is viewed as system. System
concepts recognise that organisations are made
up of components each of which has unique
properties, capabilities and mutual relationship.
The constituent element of a system are linked
together in such complex ways that actions taken
by one producer have far reaching effect on
others.
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Concepts of Organisation
 Open System: Organisations are open systems
which are influenced by the environment in
which they exist.
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Concepts of Organisation
 Organisations are seen as characterised by social
themes:
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High degree of specialisation in jobs
Qualifications and training of personnel
Clear division of labour
Distinct hierarchy of authority
Employees are motivated by economic reward.
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Concepts of Organisation
 Change and Learning: Organisations not only
adopt to change but learn and stay ahead of
change.
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Concepts of Organisation
 Authority - is a tool of management. It can be
described as the right to commit resources (that
is, to make decisions that commit an
organisation’s resources), or the legal (legitimate)
right to give orders (to tell someone to do or not
do something).
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Concepts of Organisation
 Authority a. Authority is vested in a manager and
is defined in the job description or job charter.
Authority is with the position, not the person. 1. It
is possible for two managers to occupy identical
positions of formal authority, with the same
degree of acceptance of this authority, and still
not be identically effective. One manager may not
possess the power to be as effective as the other
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Concepts of Organisation
 Authority: There are three types of authority:
(a)Line authority is direct supervisory authority
from superior to subordinate. Most employees are
“related” to line authority. (b) Staff authority is
the authority to serve in an advisory capacity.(c)
Functional authority is authority delegated to an
individual or department over specific activities
undertaken by personnel in other departments. It
is used in temporary, unique situations.
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Concepts of Organisation
 Unity of Command (1) Each and every employee
should report to one and only one superior in an
organisation. Very few exceptions should be
allowed. (2) Two or more bosses for one employee
violates this principle. (3) Violations of this
principle tend to be inadvertent. (4) Frustration,
ineffectiveness, inefficiency, and duplication of
effort are products of “dual” or “multiple”
command.
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Concepts of Organisation
 Unity of Command
▪ A single supervisor should be designated who
will be ultimately obeyed under all
circumstances and especially in the case of
conflicting orders.
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Concepts of Organisation
▪ Power: Power is the ability to exert influence in
the organisation. Authority is positional— it will
be there when the incumbent leaves. Power is
personal—it exists because of the person. 2. The
sources of power include (1) legitimate or
position power, (2) coercive power (punish), (3)
reward power
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Concepts of Organisation
(4) referent power refers to the ability of a leader
to influence a follower because of the follower's
loyalty, respect, friendship, admiration, affection,
or a desire to gain approval (5) expert power
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Concepts of Organisation
▪ Delegation 1. The downward transfer of formal
authority is delegation. 2. Work is accomplished through
delegation. 3. Fear of delegation inhibits success and
timeliness of accomplishment. 4. Delegation is a
concept describing the “passing” of formal authority to
another person.
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Concepts of Organisation
 Delegation: When managers choose to delegate,
a sequence of events is created. The process of
delegation includes: a. Assignment of tasks—
specific tasks or duties that are to be undertaken
are identified by the manager for assignment to
the subordinate. b. Delegation of authority—the
authority necessary to complete the assigned
tasks is delegated by the manager for assignment
to the subordinate.
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Concepts of Organisation
 Delegation: c. Acceptance of responsibility—
responsibility is the obligation to carry out one’s
assigned duties to the best of one’s ability.
Responsibility is not delegated by a manager to
an employee, but the employee becomes
obligated when the assignment is accepted.
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Concepts of Organisation
 Delegation: d. Creation of accountability—
accountability is having to answer to someone for
your actions. It means taking the credit or the blame.
When the subordinate accepts the assignment and
the authority, he or she will be held accountable or
answerable for actions taken. e. By delegating,
managers parcel out decision-making authority and
specific tasks to appropriate individuals. To be effective
authority should be delegated to the level best suited
to making the decisions.
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Concepts of Organisation
 Span of Control: The number of employees under
the supervisor’s supervision.
 Informal Organisation:
▪ This is the organisation that is operating outside of the
formal structure. It has a leader who influences others
and spreads any information that comes to it. It tends to
be loyal hence the leader can influence his/her followers
to impact information spread, work output and so many
other things. The mgt. Of the formal organisation should
be aware that the informal exist and be able to manage
its influence.
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What is a Vision Statement?
 A vision enables an organisation to move forward
with clarity. It links the business' specific
objectives and targets with the core values that
govern how the business will operate in order to
meet those targets.
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What is a Vision Statement?
 Defines the optimal desired future state - the
mental picture - of what an organization wants to
achieve over time;
 Provides guidance and inspiration as to what an
organization is focused on achieving in five, ten,
or more years;
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What is a Vision Statement?
 Functions as the "north star" - it is what all
employees understand their work every day
ultimately contributes towards accomplishing
over the long term; and,
 Is written succinctly in an inspirational manner
that makes it easy for all employees to repeat it at
any given time.
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What is a Mission Statement?
 A Mission statement: Defines the present state or
purpose of an organisation; answers three questions
about why an organisation exists –
▪ WHAT it does;
WHO it does it for; and
HOW it does what it does.
▪ EXAMPLE pf Mission statement for an Insurance Co:
"To provide our policy holders with as near perfect
protection, as near perfect service as is humanly
possible and to do so at the lowest possible cost