Management Business Organisation Notes

Management and business organization NOTES: Chapter 3 Introduction: 1. What is an organization:    Consists of two or more people that have consciously arranged to create a basis from which to function on a regular basis to achieve a common goal. Despite differences the four common factors that organisations share are: people,objectives, structure and management. Watson refers to 3 aspects of organisational life: o Importance of creative, critical and situation defining characteristics of the individuals within the organization. o Varieties of interests and goals among individuals and groups with emphasis on conflict and political behavior o Interaction between organization and general environment, and recognition of affects on the environment.

2. Types of organizations:  Formal organization: o Planned co-ordination of activities for the achievement of a common, explicit purpose or goal, through division of labour and function, hierarchy of authority and responsibility. o Is deliberately planned and created, o Deals with the co-ordination of activities, o Hierarchically structured with stated objectives, o Based on specification of tasks, defined relationships of authority and responsibility, o A coalition of individuals with a number of sub coalitions  Informal Organisation: o Arises from Interactions between people in the organization, o Social and psychological needs of the people in the organization o Development of groups with their own relationships and norms of behavior, o Is flexible and loosely structured o Relationships may not be defined o Membership is spontaneous, o Different groups and norms of behavior outside the formal structure may give rise to conflicts about the aims of the formal organization.

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Functions of informal organisations: o Provides personal identity and satisfaction of social needs for members o Provides additional channels of communication, o Provides motivation o Provides stability and security o Provides a means of