MBO

Unit-1
What is an organization?
Organization is the process of identifying and grouping
work to be performed, defining and delegating
responsibility and authority and establishing relationships
for the purpose of enabling people to work most
effectively together in accomplishing objectives.
Organising is the establishing of effective authority
relationships among selected work, persons, and work
places in order for the group to work together
efficiently.
Features of Organization
Division of Work:
Organisation deals with the whole task of business. The total work of the
enterprise is divided into activities and functions. Various activities are
assigned to different persons for their efficient accomplishment. This
brings in division of labour. It is not that one person cannot carry out
many functions but specialisation in different activities is necessary to
improve ones efficiency. Organisation helps in dividing the work into
related activities so that they are assigned to different individuals.
Co-Ordination:
Co-ordination of various activities is as essential as their division. It helps
in integrating and harmonising various activities. Co-ordination also
avoids duplications and delays. In fact, various functions in an
organisation depend upon one another and the performance of one
influences the other. Unless all of them are properly coordinated, the
performance of all segments is adversely affected.
 Features of Organization
Common Objectives:
All organisational structure is a means towards the achievement of enterprise goals. The
goals of various segments lead to the achievement of major business goals. The
organisational structure should build around common and clear cut objectives. This will
help in their proper accomplishment.
Co-operative Relationship:
An organisation creates co-operative relationship among various members of the group.
An organisation cannot be constituted by one person. It requires at least two or more
persons. Organisation is a system which helps in creating meaningful relationship among
persons. The relationship should be both vertical and horizontal among members of
various departments. The structure should be designed that it motivates people to perform
their part of work together.
Well-Defined Authority-Responsibility Relationships:
An organisation consists of various positions arranged in a hierarchy with well defined
authority and responsibility. There is always a central authority from which a chain of
authority relationship stretches throughout the organisation. The hierarchy of positions
defines the lines of communication and pattern of relationships.
 Importance / Need / Advantages /
Significance of Organisation
A Tool of Achieving Objectives: Organisation is a vital tool in the hands of
the management for achieving set objectives of the business enterprise.
Prevents Corruption: Usually corruption exists in those enterprises which
lack sound organisation. Sound organization prevents corruption by raising the
morale of employees. They are motivated to work with greater efficiency,
honesty and devotion.
Co-ordination in the Enterprises: Different jobs and positions are welded
together by structural relationship of the organisation. The organizational
process exerts its due and balanced emphasis on the co-ordination of various
activities.
Eliminates Overlapping and Duplication or work: Over lapping and
duplication of work exists when the work distribution is not clearly identified
and the work is performed in a haphazard and disorganized way. Since a good
organisation demands that the duties be clearly assigned amongst workers,
such overlapping and duplication is totally eliminated.
 Importance / Need / Advantages /
Significance of Organisation
It Facilitated Administration and management: Organisation is
an important and the only tool to achieve enterprise goals set b
administration and explained by management. A sound organisation
increases efficiency, avoids delay and duplication of work, increases
managerial efficiency, increases promptness, motivates employees to
perform their responsibility.
It Help in the Growth of Enterprise: Good organisation is helpful
to the growth, expansion and diversifications of the enterprise.
It Ensures Optimum Use of Human Resources: Good
organisation establishes persons with different interests, skills,
knowledge and viewpoints.
It Stimulates Creativity: A sound and well-conceived organisation
structure is the source of creative thinking and initiation of new ideas.