ORGANIZATION

INTRODUCTION
Organization is simply people working together for a common goal. It is a
group of people assembling or congregating at one place and contributes their
efforts to achieve a common goal. Hence, it is coordinates different activities for
running the business enterprise efficiently so that the common goal can be
achieved.
According to Koontz and O’Donnell, “The establishment of authority
relationships with provision for co-ordination between them, both vertically and
horizontally in the enterprise structure. These authors view organization as a
coordinating point among various persons in the business.”

MEANING OF ORGANIZATION
The word ‘organization’ refers to ‘institution’. Educational institution, a private
agency, Government department or business firm; all are organizations. In the
context of management, it means formal arrangement of work amongst
members of the institution with clear identification of authority and
responsibility so that organizational goals can be achieved optimally. If duties
of every member and their relationship with peers, superiors and subordinates
are not defined, the planning process will be ineffective.
According to Pearce and Richard B. Robinson, “process of defining the
essential relationships among people, tasks and activities in such a way that all
the organization’s resources are integrated and coordinated to accomplish its
objectives efficiently and effectively.”
IMPORTANCE OF ORGANIZATION

1. Facilitates Administration – To make the work easy for the top level
managers the middle level and the lower level managers work together so
that the top level managers and not overburdened by the work.

2. Growth and Diversification – A well-organized institution is adaptive to

change and responsive to growth and diversification.

3. Creates Synergies – It means the work to be achieved by the group of

people is more than the sum of their individual achievements.

4. Establishes Accountability – By establishing limitations in the area of

operations defines persons accountability to his boss which gears the
organizational goals.

5. Facilitates Coordination – It coordinates the work of people in different

departments and they do their assigned tasks to achieve a common goal.

6. Increase in Output - The departments specialize in their tasks and

increase the organizational output.

7. Facilitates Teamwork – Individuals are assigned with their particular

tasks but they work as a team to achieve organizational goals.

8. Facilitates Control – it directs people activities so that they work

according to the plans. This helps in achieving organizational goal.
PRINCIPLES OF ORGANIZATION

1. Principle of Unity of Objectives - When there is contradiction among

different level of goals desired goals can't be achieved.

2. Principle of Specialization - An employee takes special type of

knowledge and skill in any area; it is known as specialization.

3. Principle of Coordination - Coordination can be obtained by group effort

that emphasize on unity of action.

4. Principle of Authority - Authority is the kind of right and power through

which it guides and directs the actions of others so that the organizational
goals can be achieved.

5. Principle of Responsibility - Only authority is not provided to the people

but obligation is also provided. So, the obligation to perform the duties
and task is known as responsibility.

6. Principle of Delegation - Process of transferring authority and creation of

responsibility between superior and subordinates to accomplish a certain
task is called delegation of authority.

7. Principle of Efficiency - When the organization fulfill the objectives with

minimum cost, it is effective.

8. Principle of Balance - The functional activities their establishment and

other performances should be balanced properly.

9. Principle of Communication - Communication is the process of

transformation of information from one person to another of different
levels.

10.Principle of Personal Ability - For an organization, human resources is

important. Mainly training and development programs must be
encouraged to develop the skill in the employees.
 DEPARTMENTALISTION

Departmentalization is defined as an organizational strategy used to

divide similar processes or specializations into smaller departments
within a company. Specific jobs, processes, tasks, and units are grouped
together because of their similarities, meaning that workers with
specialized skills can address a broader range of assignments within the
same department while utilizing their abilities most effectively.

There are several bases of Departmentation. The more commonly used

bases are -:

a) Departmentation by Functions - The enterprise may be divided into

departments on the basis of functions like production, purchasing, sales,
financing, personnel etc. This is the most popular basis of
departmentation.

b) Departmentation by Products - Each department looks after the

production, sales and financing of one product. It is useful when the
expansion, diversification, manufacturing and marketing characteristics
of each product are primarily significant.
 c) Departmentation by Customers - In such method of departmentation,
the activities are grouped according to the type of customers. This type
of departmentation is useful for the enterprises which sell a product or
service to a number of clearly defined customer groups.

d) Departmentation by Process or Equipment - In this the activities are

grouped on the basis of production processes involved or equipment
used.

SPAN OF TIME
Span of control the number of employees managed by a single supervisor varies
from company to company, and also from team to team within the same
company. In some organizations, many will report to the CEO or president; in
others, there may be many reporting levels and fewer direct reports to each
leader.
There are two types of Spans of Control-:
a) Wide span of control - allows managers to have more direct reports and,
therefore, more control over the work they produce.

b) A narrow span of control - provides managers and employees with

more time for one-on-one communication as well as more opportunities
for employee development.
TYPES OF ORGANIZATION
There are two broad categories of organisation -:
a) Formal Organization - The Formal Organization is a system of well-
defined jobs, each bearing a definite measure of authority,
responsibility and accountability.

b) Informal Organization – refers to the relationship between people in an

organisation based not on procedures and regulations but on personal
attitude.

AUTHORITY
Authority means a special permission which is obtained by a person from his
higher officer and on the basis of that a person gets the rights to do the work in
the organization. It is positional and comes with the territory. It is key to
managerial functions. No any person can perform his duties with full
responsibility, without authority.
Authority is defined as institutionalized and legal power inherent in a job, func-
tion, or position that enables the job holder to successfully carry out his/her
responsibilities.

DELEGATION OF AUTHORITY
The procedure of distributing tasks or responsibilities with their associated
decisions to a subordinate employee on a temporary or long-term basis is
delegation of authority.

FEATURES OF DELEGATION OF AUTHORITY

1) Authority once delegated can be further expanded, or withdrawn by the

superior depending on the situation.

2) The manager cannot delegate the authority which he himself does not
possess. Also, he cannot delegate his full authority to a subordinate.

3) The delegation of authority may be oral or written, and may be specific or

general.

4) The delegation is an art and must comply with all the fundamental rules
of an organization.
CONCLUSION

Organizations can function within a number of different structures, each

possessing distinct advantages and disadvantages. Although any structure
that is not properly managed will be plagued with issues, some
organizational models are better equipped for particular environments and
tasks. A change in the environment often requires change within the
organization operating within that environment.

CASE STUDY

GlaxoSmithKline Pharmaceuticals Limited is a large pharmaceutical

company with large manufacturing base and an all-India marketing
network. The company experienced the problems because of
government's policy towards multinationals, inflationary pressures, and
internal organizational problems. When the new managing director was
appointed in 1973, a decision was taken to implement MBO and a senior
manager was appointed as MBO director. MBO was introduced with the
identification of corporate objectives and key result areas. The company
adopted a group approach to objective setting at the corporate, divisional,
and departmental levels. Initially there were 48 work groups which were
later reduced to 37. The objective setting process consisted of the
following steps: (i) the corporate group issues guidelines to the divisions
for expected results; (it) the divisions indicate their capabilities as also the
requirement for additional resources; (ill) corporate objectives are
established; (iv) divisional objectives are finalized; (v) company's budget
is compiled; (vi) departmental objectives are established; and (wit) result
guides for managers are renewed. The corporate and divisional objectives
in Glaxo are established for three years. Renewal takes place every year.
The emphasis in MBO at Glaxo is on strengthening the planning and
control systems at different levels and on team building and participative
action planning.
The company changed its structure from functional to divisional basis.
This was done before the implementation of MBO. It was recognized that
the existing structure on functional basis had problems of coordination,
conflict, and accountability.
Therefore, with effect from January 1974, Glaxo was reorganized into
three profit centres/operating divisions - pharmaceuticals, foods, and
chemicals - besides a number of corporate departments. The new
structure made impact on the morale and performance by providing
clarity in role and objectives. This also facilitated the Principles and
Practice of Managers, implementation of MBO. The initial process of
MBO Implementation was slow and encountered several problems. There
was resistance among semior managers to the change in management
styles. However, the managing director's personal commitment was of a
very high order and, therefore, as the process continued, Its quality
improved It produced many positive results. In 1976, a review of the
contributions was made which indicated improvements in the following
areas: (1) the quality of contribution d the corporate and the divisional
directors and their senior managers to the business, discussion from
which corporate and divisional plans are evolved; (I) the logs, balance,
and quality of expression in these plans; and (li) the actual setting d
objectives with attainable stretch. The business results of the company
also improved after the implementation of MBO. This was attributed to
MBO and reorganization of structure. This, in turn, also reinforced the
positive attitude towards MBO.

ACKNOWLEDGEMENT
I would like to express my special thanks of gratitude to my faculty Mrs.
Chitranshi Singh who gave me the golden opportunity to do this wonderful
project on the topic Organization which also helped me in doing a lot of
research and I came to know about so many new things I am really thankful to
her.
Secondly, I would also like to thank my parents and friends who helped me a lot
in finalizing this project within the limited time frame.

AMITY LAW SCHOOL, NOIDA

 FUNDAMENTALS MANAGEMENT FOR
LAWYERS PROJECT
(MGMT 111)
TOPIC- ORGAZATION

SUBMITTED BY:
NAME: PRATYAKSHA MEHROTRA
PROGRAMME: BBA LL.B. (H)
SECTION: A
ENROLLMENT NO.: A3221522052
SUBMITTED TO: CHITRANSHI SINGH

INDEX
S.NO PARTICULARS
.
1. ACKNOWLEDGEMENT
2. INTRODUCTION
3. MEANING OF ORGANIZATION
4. IMPORTANCE OF ORGANIZATION
5. PRINCIPLES OF ORGANIZATION
6. DEPARTIMENTALISATION
7. SPAN OF TIME
8. TYPES OF ORGANIZATION
9. AUTHORITY
10. DELEGATION OF AUTHORITY
11. CONCLUSION
13. CASE STUDY
14. REFERENCE
 REFERENCES

1. www.wikipedia.com
2. L M PRASAD
3. www.indeed.com
4. www.topper.com
5. www.slideshare.com