Most
organization has a number of features in common:
- Goals and objectives
- Formal organization
structure
- Informal organization
structure
With an ever-changing marketplace,
an organizational has to look continually at its goals and structures. This
will ensure that it is being responsive to the demands of the market in which
it operates.
Goals
and Objectives
For an organization to function
effectively, it must have a set goal or goals. It then translates these goals
into operational objectives. It is the responsibility of management to support
staff in achieving these objectives.
The primary goal of private sector
organizations is to make a profit in order to survive in the market place.
The public sector is being
encouraged by government to shift its focus toward a business orientation and
become self-funding, if not profit-making. This is called corporatisation.
Formal
organization structure
The structure of an organization is
determined by the type of ownership, its business activities and its size.
Small
business
In a small business, the contact
between the owner and staff is simple and direct, with each person performing a
variety of tasks. The division of tasks is not as distinct as that in a large
business.
Large
business
In large business, the organization
structure is centered on chains of command, authority and responsibility, and
the formal communication network in which decision are made and instructions
given. Decisions and instructions flow downward from management. Reports flow
upward to management. This allows the business to effectively achieve its
specific goals and objectives.
Essential elements to consider when
developing an effective organization structure in a large business are:
- Setting clear goals
and objectives
- Planning from the
objectives to decide on the type of work and functions necessary to
achieve those objectives
- Division of the
functions into departments and individual jobs
- Staffing decisions
and the degree of specification required to perform the various functions
- Providing a physical
environment that allows the employees to perform the functions
effectively.
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