Clyde Stewart The Organisation The Organisation Objectives of

Clyde Stewart The Organisation

The Organisation �Objectives of the Presentation At the end of the presentation participants should be able to ▪ ▪ Define the term organisation Discuss various concepts of organisation Identify the elements of vision and mission Discuss the delegation process.

The Organisation �Definition of Organisation Basically, an organisation in its simplest form is group of people intentionally organised to accomplish an overall, common goal or set of goals. A social units or human groupings deliberately established for the accomplishment of specific objectives. • An organisation is thus the result of the grouping of work and the allocation of duties, responsibilities and authority to achieve specific goals.

The Organisation �Definition of Organisation A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organisations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organisations are open systems-they affect and are affected by their environment.

The Organisation �What is a Concept? A general idea or understanding of something A general notion or idea; conception An idea of how something is, or how something should be done �What are concepts of Organisation? The term ‘organisation’ is used in four different senses: as a process, as a structure of relationship, as a group of persons and as a system, as given below:

The Organisation �Concepts of Organisation as a Process: In this first sense, organisation is treated as a dynamic process and a managerial activity which is essential for planning the utilisation of company’s resources, plant an equipment materials, money and people to accomplish the various objectives. Organisation as a Framework of Relationship: In the second sense organisation refers to the structure of relationships and among position jobs which is created to release certain objectives.

The Organisation �Concepts of Organisation as a Group of persons: In the third sense, organisation is very often viewed as a group of persons contributing their efforts towards certain goals. Organisation begins when people combine their efforts for some common purpose. It is a universal truth that an individual is unable ability and resources. Barnard has defined ‘Organisation’ as an identifiable group of people contributing their efforts towards the attainment of goals.

The Organisation �Concepts of Organisation as a System: In the fourth sense, the organisation is viewed as system. System concepts recognise that organisations are made up of components each of which has unique properties, capabilities and mutual relationship. The constituent element of a system are linked together in such complex ways that actions taken by one producer have far reaching effect on others.

The Organisation �Concepts of Organisation Open System: Organisations are open systems which are influenced by the environment in which they exist.

The Organisation �Concepts of Organisations are seen as characterised by social themes: ▪ ▪ ▪ High degree of specialisation in jobs Qualifications and training of personnel Clear division of labour Distinct hierarchy of authority Employees are motivated by economic reward.

The Organisation �Concepts of Organisation Change and Learning: Organisations not only adopt to change but learn and stay ahead of change.

The Organisation �Concepts of Organisation Authority - is a tool of management. It can be described as the right to commit resources (that is, to make decisions that commit an organisation’s resources), or the legal (legitimate) right to give orders (to tell someone to do or not do something).

The Organisation �Concepts of Organisation Authority a. Authority is vested in a manager and is defined in the job description or job charter. Authority is with the position, not the person. 1. It is possible for two managers to occupy identical positions of formal authority, with the same degree of acceptance of this authority, and still not be identically effective. One manager may not possess the power to be as effective as the other

The Organisation �Concepts of Organisation Authority: There are three types of authority: (a)Line authority is direct supervisory authority from superior to subordinate. Most employees are “related” to line authority. (b) Staff authority is the authority to serve in an advisory capacity. (c) Functional authority is authority delegated to an individual or department over specific activities undertaken by personnel in other departments. It is used in temporary, unique situations.

The Organisation �Concepts of Organisation Unity of Command (1) Each and every employee should report to one and only one superior in an organisation. Very few exceptions should be allowed. (2) Two or more bosses for one employee violates this principle. (3) Violations of this principle tend to be inadvertent. (4) Frustration, ineffectiveness, inefficiency, and duplication of effort are products of “dual” or “multiple” command.

The Organisation �Concepts of Organisation Unity of Command ▪ A single supervisor should be designated who will be ultimately obeyed under all circumstances and especially in the case of conflicting orders.

The Organisation �Concepts of Organisation ▪ Power: Power is the ability to exert influence in the organisation. Authority is positional— it will be there when the incumbent leaves. Power is personal—it exists because of the person. 2. The sources of power include (1) legitimate or position power, (2) coercive power (punish), (3) reward power

The Organisation �Concepts of Organisation (4) referent power refers to the ability of a leader to influence a follower because of the follower's loyalty, respect, friendship, admiration, affection, or a desire to gain approval (5) expert power

The Organisation �Concepts of Organisation ▪ Delegation 1. The downward transfer of formal authority is delegation. 2. Work is accomplished through delegation. 3. Fear of delegation inhibits success and timeliness of accomplishment. 4. Delegation is a concept describing the “passing” of formal authority to another person.

The Organisation �Concepts of Organisation Delegation: When managers choose to delegate, a sequence of events is created. The process of delegation includes: a. Assignment of tasks— specific tasks or duties that are to be undertaken are identified by the manager for assignment to the subordinate. b. Delegation of authority—the authority necessary to complete the assigned tasks is delegated by the manager for assignment to the subordinate.

The Organisation �Concepts of Organisation Delegation: c. Acceptance of responsibility— responsibility is the obligation to carry out one’s assigned duties to the best of one’s ability. Responsibility is not delegated by a manager to an employee, but the employee becomes obligated when the assignment is accepted.

The Organisation �Concepts of Organisation Delegation: d. Creation of accountability— accountability is having to answer to someone for your actions. It means taking the credit or the blame. When the subordinate accepts the assignment and the authority, he or she will be held accountable or answerable for actions taken. e. By delegating, managers parcel out decision-making authority and specific tasks to appropriate individuals. To be effective authority should be delegated to the level best suited to making the decisions.

The Organisation �Concepts of Organisation Span of Control: The number of employees under the supervisor’s supervision. Informal Organisation: ▪ This is the organisation that is operating outside of the formal structure. It has a leader who influences others and spreads any information that comes to it. It tends to be loyal hence the leader can influence his/her followers to impact information spread, work output and so many other things. The mgt. Of the formal organisation should be aware that the informal exist and be able to manage its influence.

The Organisation �What is a Vision Statement? A vision enables an organisation to move forward with clarity. It links the business' specific objectives and targets with the core values that govern how the business will operate in order to meet those targets.

The Organisation �What is a Vision Statement? Defines the optimal desired future state - the mental picture - of what an organization wants to achieve over time; Provides guidance and inspiration as to what an organization is focused on achieving in five, ten, or more years;

The Organisation �What is a Vision Statement? Functions as the "north star" - it is what all employees understand their work every day ultimately contributes towards accomplishing over the long term; and, Is written succinctly in an inspirational manner that makes it easy for all employees to repeat it at any given time.

The Organisation �What is a Mission Statement? A Mission statement: Defines the present state or purpose of an organisation; answers three questions about why an organisation exists – ▪ WHAT it does; WHO it does it for; and HOW it does what it does. ▪ EXAMPLE pf Mission statement for an Insurance Co: "To provide our policy holders with as near perfect protection, as near perfect service as is humanly possible and to do so at the lowest possible cost