An 'organisation' is a business or industrial organisation set up with an objective to perform a manufacturing activity or to provide a service etc. The term 'Structure' is highly abstract and illusive. However its existence is real and affects everyone in the organisation. It is the pattern in which various parts or components are inter-related or inter-connected. It establishes relationships [...]
Organisation is a mechanism or structure which helps the activities to be performed effectively. The organisation is established for the purpose of achieving the business objectives. The business objectives may differ from one business to another. Whatever may be the business objectives, there is a need of an organisation.The word 'Organisation' is derived from the word 'Organism' which means an [...]
Everything you need to know about formal and informal organisation. Formal organization refers to the organisational structure designed by the management to achieve organisational goals in which the responsibilities, authority and mutual relationships among all the employees working in an enterprise are clearly defined. Informal organization arises spontaneously as a result of personal and social relations among the employees in [...]
Everything you need to know about the forms of business organisation. After deciding to start a business, an entrepreneur has to choose one of the forms of business organisation. The merits and demerits of each form of business organisation have to be considered keeping in view, the size and nature of business, amount of capital required and the extent of [...]
Everything you need to know about the functional organisational structure. In the functional organisational structure, all activities in the enterprise are grouped together according to certain functions like production, marketing, finance and personnel, and are kept under the charge of different persons. The person in-charge of a function follows it wherever it goes throughout the organisation and also controls the [...]
Everything you need to know about types of organizational structure. Organisation structure refers to the way people and jobs in an organisation are arranged so that the work of the organisation can be performed. In other words, it refers to the particular way in which a firm or public authority is structured in order to perform its economic, social etc., [...]
The systems approach is useful in studying business organisations because of the following reasons:
1. Systems approach provides a refreshingly new conceptual scheme for the analysis of business organisations:
The main thrust of the systems approach is to view a business organisation as an open system in constant interaction with its environment.
Members of different departments develop their own views about how best to advance the interests of the organisation. To sales people, product variety may take precedence over product quality.
There must be one central and supreme coordinating authority in the organisation. The implication is that there should be one point in the structure which is the focus of authority, and to which the whole organisation can turn its eye when there are disruptive and unbalancing tendencies.
This is probably least important from the viewpoint of management. However, the ability of an employee to perform a certain type of work satisfactorily may depend upon his success in coordinating his own efforts.