organization

An organization is a group of people who work together, like a neighborhood

association, a charity, a union, or a corporation.
Organization is also the act of forming or establishing something (like an
organization). It can also refer to a system of arrangement or order, or a structure
for classifying things. Strangely enough, this word deries from the Old !rench, in
which organize referred to your internal organs, your lier, heart, and so on. "his
erb originally meant giing an organic structure to something# understanding the
function some part of the larger whole is supposed to ful$ll, and making that
happen.
organization
%e$nitionSae to !aorites See &'amples
A social unit of people that is structured and managed to meet a need or to pursue
collectie goals. All organizations hae a management structure that determines
relationships between the di(erent actiities and the members, and subdiides and
assigns roles, responsibilities, and authority to carry out di(erent tasks.
Organizations are open systems))they a(ect and are a(ected by their enironment
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1. Principle of Specialization
According to the principle, the whole work of a concern should be diided amongst
the subordinates on the basis of 1uali$cations, abilities and skills. It is through
diision of work specialization can be achieed which results in e(ectie
organization.
Mintzbergs 10 managerial roles
Dr. Henry Mintzberg a prominent management researcher conducted a researcher to find out what are
really a manager duties or responsibilities. In 191 Henri !ayol was first to gi"e definition of manager. Dr.
Henry Mintzberg wanted to find out that if Henri !ayols #0 year old definition of manager and
management definition still stood is 0s and $0s. %o he conducted a research base on structured
obser"ation method.
!or this Mintzberg obser"ed the daily acti"ities of fi"e e&ecuti"es for a one wee' period. (hey all were
from fi"e different type of organization) a consulting firm* a school* a technology firm* a consumer goods
manufacturer and a hospital. He 'ept trac' of all there acti"ates and analyzed it. His research report titled
+M,-,./0I,1 23045 ,-,16%I% !03M 37%/08,(I3-9 was for his doctoral dissertation* at the %loan
%chool of Management* M. I. (. ,t :anuary 19$1 he submitted the report and it was accepted and
published in 3ctober 19$1. In his research Mintzberg said that what managers do can best be described
by loo'ing at the roles they play at wor'. (he term management role refers to specific categories of
managerial beha"ior. He identified 10 identified roles of a manager played in organization which fall into
three basic categories5 interpersonal roles* informational roles and decisional roles.
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(hese roles relate to the manager<s beha"ior that focuses on interpersonal contact Interpersonal roles are
roles that in"ol"e people =subordinates and persons outside the organization> and other duties that are
ceremonial and symbolic in nature. (he three interpersonal roles include being a figurehead* leader* and
liaison. ,ccording to Dr. Henry Mintzberg (hese three interpersonal roles deri"e from the authority and
status associated with managers post.
o !igurehead5 (he figurehead performs symbolic legal or social duties. ,ll social* inspiration* legal
and ceremonial obligations. In this light* the manager is seen as a symbol of status and authority
o 1eader5 (he 1eader builds relationships with employees and communicates with* moti"ates* and
coaches them. Duties are at the heart of the manager?subordinate relationship and include
structuring and moti"ating subordinates* o"erseeing their progress* promoting and encouraging
their de"elopment* and balancing effecti"eness.
o 1iaison5 (he liaison maintains a networ' of contacts outside the wor' unit to obtain information.
Describes the information and communication obligations of a manager. 3ne must networ' and
engage in information e&change to gain access to 'nowledge bases.
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Informational roles in"ol"e recei"ing* collecting* and disseminating information. (he three informational
roles include a monitor* disseminator* and spo'esperson. (hese informational roles are all about recei"ing
and transmitting information so that managers can ser"e as the ner"e centers of their organization. (he
informational roles are)
o Monitor5 (he monitor see's internal and e&ternal information about issues that can affect the
organization. Duties include assessing internal operations* a department<s success and the
problems and opportunities which may arise. ,ll the information gained in this capacity must be
stored and maintained
o Disseminator5 (he disseminator transmits information internally that is obtained from either
internal or e&ternal sources. Highlights factual or "alue based e&ternal "iews into the organization
and to subordinates. (his re@uires both filtering and delegation s'ills.
o %po'esperson5 (he spo'esperson transmits information about the organization to outsiders.
%er"es in a ;0 capacity by informing and lobbying others to 'eep 'ey sta'eholders updated about
the operations of the organization.
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Decisional roles re"ol"ed around ma'ing choices. Managers interpersonal role leads to the decisional
roles. Information and resources thats collected and gathered by the interpersonal ma'es a manger able
to play the decisional roles or responsibilities that his is obligated to. (he four decisional roles include
being an entrepreneur* disturbance handler* resource allocator* and negotiator.
o /ntrepreneur5 (he entrepreneur acts as an initiator* designer* and encourager of change and
inno"ation. 0oles encourage managers to create impro"ement proBects and wor' to delegate*
empower and super"ise teams in the de"elopment process.
o Disturbance handler5 (he disturbance handler ta'es correcti"e action when the organization
faces important* une&pected difficulties. , generalist role that ta'es charge when an organization is
une&pectedly upset or transformed and re@uires calming and support.
o 0esource allocator5 (he resource allocator distributes resources of all types* including time*
funding* e@uipment* and human resources. Describes the responsibility of allocating and
o"erseeing financial* material and personnel resources.
o -egotiator5 (he negotiator represents the organization in maBor negotiations affecting the
managers areas of responsibility is a specific tas' which is integral for the spo'esman* figurehead
and resource allocator roles.
If we analyze Mintzburgs finds we can say that authority and status deri"e the interpersonal roles*
interpersonal ma'es it necessary for a manager to play informational roles. ,nd that enable a manager to
ma'e decision. (hese ten roles of a manager stated by Mintzburg) comes with a great deal or
responsibilities. Informing* Aonnecting* and ordering re@uire a manager to able to adapt to the situation
and controlling it in a balanced way.
2rofessor 3enry 4intzberg, born in 5anada in 6787, is an internationally prominent
academic and a proli$c author of articles and books on management and business.
3e identi$ed ten roles in managerial work. "he roles are diided into three
subcategories# interpersonal contact (6,-,8), information processing (9, :, ;) and
decision making (., <, 7, 6=). &ach of the roles is di(erent and consists of behaiors
and actiities the manager has to perform#
(6) !igurehead > as the head of organization the manager performs all social,
legal and ceremonial duties, like receiing isitors. "herefore, the manager is seen
as symbol of prestige and authority?
(-) @eader > creates proper work atmosphere and motiates subordinates
through oerseeing their progress, promoting and encouraging their deelopment?
(8) @iaison > maintains information links in and outside the organization, deelops
and maintains a network of e'ternal contacts to gather information and build
knowledge bases?
(9) 4onitor > gathers internal and e'ternal information important to the
organization, deals with assessing internal operations as well as problems and
opportunities which may arise, scans papers and reports, maintains interpersonal
contacts?
(:) %isseminator > transmits factual and alue)based information to subordinates,
sends memos, makes phone calls?
(;) Spokesman > represents the organization in speeches and reports to
stakeholders, keeping them informed?
(.) &ntrepreneur > recognizes opportunities and areas of business deelopment,
initiates new proAects, empowers and superises teams in the deelopment process?
(<) %isturbance handler > resoles conBict within the organization, takes
correctie steps in case of company crisis, deals reasonably with e'ternal changes?
(7) *esource Allocator > is responsible for allocating and superising $nancial,
material and personnel resources?
(6=) Cegotiator > defends interests of the department, represents the company
during negotiations with unions and suppliers.
According to 4intzbergDs theory, the role of a manager is greatly dierse and it often
re1uires comple'ity of behaiors to cope with seeral indiidual situations within the
organization. In managerial work the ten roles constantly oerlap and the manager
must $nd the right balance between them. "herefore, the ten roles can be utilized in
any managerial position as ealuation criteria for assessing the performance of a
manager in his+her role.
Principles of management[edit]
1. Division of work. 2or' should be di"ided among indi"iduals and groups to ensure that effort and
attention are focused on special portions of the tas'. !ayol presented wor' specialization as the
best way to use the human resources of the organization.
C. Authority. Managers must be able to gi"e orders. ,uthority gi"es them this right. -ote that
responsibility arises where"er authority is e&ercised.
D. Discipline. /mployees must obey and respect the rules that go"ern the organization. .ood
discipline is the result of effecti"e leadership* a clear understanding between management and
wor'ers regarding the organization<s rules* and the Budicious use of penalties for infractions of the
rules.
E. Unity of command. /"ery employee should recei"e orders from only one superior.
#. Unity of direction. /ach group of organisational acti"ities that ha"e the same obBecti"e should
be directed by one manager using one plan.
. Subordination of individual interests to the general interest. (he interests of any one
employee or group of employees should not ta'e precedence o"er the interests of the
organization as a whole.
$. Remuneration. 2or'ers must be paid a fair wage for their ser"ices.
F. Centralisation. Aentralisation refers to the degree to which subordinates are in"ol"ed in decision
ma'ing. 2hether decision ma'ing is centralized =to management> or decentralized =to
subordinates> is a @uestion of proper proportion. (he tas' is to find the optimum degree of
centralisation for each situation.
9. Scalar chain. (he line of authority from top management to the lowest ran's represents the
scalar chain. Aommunications should follow this chain. Howe"er* if following the chain creates
delays* cross?communications can be allowed if agreed to by all parties and superiors are 'ept
informed.
10. Order. ;eople and materials should be in the right place at the right time.
11. Euity. Managers should be 'ind and fair to their subordinates.
1C. Stability of tenure of personnel. High employee turno"er is inefficient. Management should
pro"ide orderly personnel planning and ensure that replacements are a"ailable to fill "acancies.
1D. !nitiative. /mployees who are allowed to originate and carry out plans will e&ert high le"els of
effort.
1E. Esprit de corps. ;romoting team spirit will build harmony and unity within the organization.
Management Principles developed by Henri Fayol:
6. DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and
attention are focused on special portions of the task. Fayol presented work specialization as the best way to
use the human resources of the organization.

-. AUTHORITY: he concepts of !uthority and responsibility are closely related. !uthority was defined by
Fayol as the right to give orders and the power to e"act obedience. #esponsibility involves being
accountable$ and is therefore naturally associated with authority. Whoever assumes authority also assumes
responsibility.
8. DISCIPLINE: ! successful organization re%uires the common effort of workers. Penalties should be
applied &udiciously to encourage this common effort.
9. UNITY OF COMMAND: Workers should receive orders from only one manager.

:. UNITY OF DIRECTION: he entire organization should be moving towards a common ob&ective in a
common direction.
;. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: he interests
of one person should not take priority over the interests of the organization as a whole.

.. REMUNERATION: Many variables$ such as cost of living$ supply of %ualified personnel$ general
business conditions$ and success of the business$ should be considered in determining a worker's rate of pay.

<. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role.
(ecentralization is increasing the importance. he degree to which centralization or decentralization should
be adopted depends on the specific organization in which the manager is working.

7. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. )ach manager$ from
the first line supervisor to the president$ possess certain amounts of authority. he President possesses the
most authority* the first line supervisor the least. +ower level managers should always keep upper level
managers informed of their work activities. he e"istence of a scalar chain and adherence to it are necessary
if the organization is to be successful.
6=. ORDER: For the sake of efficiency and coordination$ all materials and people related to a specific kind of
work should be treated as e%ually as possible.
66. EQUITY: !ll employees should be treated as e%ually as possible.

6-. STABILITY OF TENURE OF PERSONNEL: #etaining productive employees should always be a high
priority of management. #ecruitment and ,election -osts$ as well as increased product.re&ect rates are
usually associated with hiring new workers.
68. INITIATIVE: Management should take steps to encourage worker initiative$ which is defined as new or
additional work activity undertaken through self direction.
69. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among
employees.
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