Friday 8 July 2011

Defining Organisation


 A corporation can use the Internet to work seamlessly with professionals such as lawyers and accountants who remain "outside" the corporate walls as consultants rather than company employees... companies should focus on their core competencies... Despite the emergence of new, flexible boundaries, big companies won't deconstruct themselves into per-project production companies. Companies need to excel in consistent in-house execution of their core competencies.... they'll just use technology to do it more efficiently. Every company will experiment to find its optimal size and organizational structure...  Bill Gates, Business @ The Speed of Thought. 1999. Ch.8: "Change in the Boundaries of Business," pp.133ff.

The term “Organization” is a word that is used every day in different context to mean different things. Organisation is derived from the Greek word Organon, itself derived from the better-known word Ergon - meaning a compartment for a particular job.

There are a number of perspectives as how organization is viewed; from a Process - Related perspective, an organization is viewed as an entity and the focus is to complete a set of tasks or actions. From a Functional Perspective the focus is on how businesses or state authorities are used, Institutional Perspective views organization as a purposeful structure within a social context. Simply stated Management views organization from an instrumental point of view.

According to Stephen Robbins “Organisation is a consciously created aggregate or a group with the purpose of achieving some objective(s) and has a well defined structure”.

Key Concepts of Organisation 1.Social system, 2.Mutual Interest, 3.Ethics

Social System
Just as people have psychological needs; organisations also have social needs and status. Their behaviour is influenced by their group as well as by their individual drives. Infact two types of social system exist side by side in the organisation. One is the formal official social system and, the other is the informal social system.
 

The existence of the social system implies that organisational environment is one of dynamic change rather than static set of relations. All parts of the system are interdependent and each part is subject to influence by the other part.

Mutual Interest
Organisations need people, and people need organisations. Organisations have a human purpose. Organisations are formed and maintained on the basis of some mutuality of interest among the participants. Mutual interest provides a super ordinate goal one that can be attained only through integrated efforts of individuals and their employers.

Ethics
To succeed, organisation must treat employees in an ethical fashion; more firms are recognizing this need and are responding with a variety of program. Companies are establishing Codes of Ethics, Publicized statements of Ethical Values, Provide ethics training, and reward employees for notable ethical behaviour and set up internal procedure to handle misconduct.

Organisations have begun to recognize that organisational behaviour always involves people, ethical philosophy is involved in one way or the in each action they take. When the organisations goals and actions are ethical, mutually creates a triple reward system in which individual organisational and social objectives are met.
(Source: Organisational Behaviour - Stephen Robbins)

 
 

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