Page 108 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Unit 4: Organising

4.9 Summary Notes

Organisation is the foundation upon which the whole structure of management is built.
It is the backbone of management.

Organising is the process of establishing relationship among the members of the enterprise.
The relationships are created in terms of authority and responsibility.
Informal organisation, which does not appear on the organisation chart, supplements the
formal organisation in achieving organisational goals effectively and efficiently.
Organisation requires the creation of structural relationship among different departments
and the individuals working there for the accomplishment of desired goals.

Organisation structure is primarily concerned with the allocation of tasks and delegation
of authority.
The establishment of formal relationships among the individuals working in the
organisation is very important to make clear the lines of authority in the organisation and
to coordinate the efforts of different individuals in an efficient manner.

4.10 Keywords

Formal Organisation: The formal organisation refers to the formal relationships of authority
and subordination within a company.
Functional Organisation: A functional structure is one that organises employees around skills
or other resources.
Informal Organisation: The informal organisation refers to the network of personal and social
relations that develop spontaneously between people associated with each other.
Organisation Structure: The plan for the systematic arrangement of work is the organisation
structure.

Organisation: An organisation is a social arrangement which pursues collective goals, which
controls its own performance, and which has a boundary separating it from its environment.

4.11 Self Assessment

Fill in the blanks:
1. The staff managers are not accountable for the .................. .
2. Different groups wish to achieve .................. outcomes.

3. Committees are an expensive both in terms of .................. and .................. .
4. .................. committee has the power to administer the affairs of the business.
5. .................. organisation has greater flexibility as compared to that of the others.
6. Committees offer scope for group .................. and group .................. .
7. Organisation structure is primarily concerned with the .................. and .................. .
8. Organisation design begins with the creation of a .................. .
9. ....................... committees are appointed for counselling purpose only.
10. Adhoc committees are ................................. in nature.

LOVELY PROFESSIONAL UNIVERSITY 103