“Sound organization structure is an essential prerequisite of efficient management” – Discuss this statement and point out the various principles which should be followed in developing organization structure
Organization is the backbone of management. Without efficient organization, no management can perform its functions smoothly. Sound organization contributes greatly to the continuity and success of the enterprise. Once A. Carnegie, an American industrialist, said, “Take away our factories, take away our trade, our avenues of transportation, and our money. Leave nothing but our organization, and in four years we shall have re-established ourselves”. That shows the significance of managerial skills and organization. However, good organization structure does not by itself produce good performance - just as a good constitution does not guarantee great presidents or good laws a moral society. But a poor organization structure makes good performance impossible, no matter how good the individuals may be. The right organizational structure is the necessary foundation; without it the best performance in all other areas of management will be ineffectual and frustrated.
CONCEPT OF ORGANISATION STRUCTURE
Organisation structure may be defined as the established pattern of relationships among the components of the organisation. Organisation structure in this sense refers to the network of relationships among individuals and positions in an organisation. Jennifer and Gareth have defined organisation structure as the formal system of task and reporting relationships that controls, coordinates and motivates employees so that they cooperate and work together to achieve an organisation’s goals. In fact organisation structure describes the organisation framework. Just as human beings have skeletons that define their parameters, organisations have structures that define-theirs. It is like the architectural plan of a building. Just as the architect considers various factors like cost, space, special features needed etc. while designing a good structure, the managers too must look into factors like benefits of specialisation, communication problems, problems in creating authority levels etc., before designing the organisation structure.
The manager determines the work activities to get the job done, writes job descriptions, and organises people into groups and assigns them to superiors. He fixes goals and deadlines and establishes standards of performance. Operations are controlled through a reporting system. The whole structure takes the shape of a pyramid. The structural organisation implies the following things :
· The formal relationships with well-defined duties and responsibilities; · The hierarchical relationships between superior and subordinates within the organisation; · The tasks or activities assigned to different persons and the departments; · Coordination of the various tasks and activities;
· A set of policies, procedures, standards and methods of evaluation of performance which are formulated to guide the people and their activities.
The arrangement which is deliberately planned is the formal structure of organisation. But the actual operations and behaviour of people are not always governed by the formal structure of relations. Thus, the formal arrangement is often modified by social and psychological forces and the operating structure provides the basis of the organisation.
Sound organization is an essential prerequisite of efficient management. It helps an organization in the following ways: 1. Enlarges abilities: It helps individuals to enlarge their capabilities. Division of work enables an individual to specialize in the job in which he is proficient, leading to better utilization of resources and talents.
2. Facilitates administration: It facilitates administration by avoiding waste motions, overlapping work and duplication of effort. Departmentation enables...
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