Organisation and Society

Need for Organisation

• Organisations serve society and operate within social rules and values.
• They respond to social needs, aiming to make conditions better, safer, cheaper, and enhance the quality of life.
• Organisations achieve objectives that cannot be achieved by individuals, requiring coordination of individual efforts.
• They preserve and extend knowledge, storing and developing it for future generations.
• Organisations provide careers, work, and livelihood, bringing satisfaction and self-fulfillment to employees through efficiency and control.

Organisation Structure

• Definition: An arrangement of lines of authority and communication within a firm, allocating duties and responsibilities.
• It is a supporting framework designed for planning and executing activities of a firm.
• Organisation structure achieves: • Creation of hierarchies and work groups • Mechanism for allocating tasks and responsibilities • Coordination of activities • Setting up of control span • Centralising and decentralising activities • Determining the extent of individual responsibilities

Organisation Structure - Forms

• Project structure: Suitable for undertaking periodic, specialised work and development of a unit.
• Matrix structure: Combines the merits of project structure and functional specialisation with full-time, specialised units capable of handling more than one project at a time.

Organisation Chart

• Definition: A diagram showing the pattern of authority within an organisation, or a diagram showing the formal structure of an organisation and the interrelationships of its parts, positions, and jobs.
• Purpose: • Define system of accountability of a firm • Determine employee status within the management hierarchy • Facilitate organisational design • Prepare management succession plan • Show lines of communication • Show span of control of superiors or management staff
• Types: • Hierarchical: Division into different levels with top-to-bottom line of command • Flat or Horizontal: Few or no levels, used in small or individual unit organisations • Matrix: Same skill groups reporting to their respective managers
• Limitations: • Does not show developed social relationships • Relationships shown are often simplistic and do not reflect actual complex relationships • Easily becomes outdated and changes are often resisted • Does not show management style • De-motivates workers who feel their ranks are lower than expected

Span of Control

• Definition: The number of employees or immediate subordinates controlled by and reporting to a superior.
• Determinants: • Nature of subordinates’ work • Skill, capabilities, qualifications, experience of subordinates and manager • Availability and use of ICT • Subordinates’ knowledge of formal work rules and procedures • Management style and organisation approaches • Depth of organisation hierarchy
• Wide Span of Control: • Has more than six horizontal blocks of work functions • Flat structure with few levels • Subordinates are well trained and enthusiastically carry out instructions • Effective for simple tasks and in organisations with excellent communication
• Narrow Span of Control: • Has a maximum of six horizontal blocks of work functions • Tall structure with many levels • Superiors are able to focus and give full attention to the needs of immediate subordinates • Facilitates and enhances specialisation of function, easy vertical communication, and effective coordination of subordinates’ work

This quiz covers the need for organisations in society, their role in responding to social needs, and achieving objectives that individuals cannot.