Formal Organizations

Description
The PPT explains about Organizations and their types.

FORMAL ORGANIZATIONS Organizations are collectivities oriented to the pursuit of relatively specific goals. They are purposeful in the sense that the activities and interactions of participants are coordinated to achieve specified goals.

Goals are specific to the extent that they are explicit, are clearly defined and provide unambiguous criteria for selecting among alternative activities.

Organizations are collectivities that

exhibit a relatively high degree of
formalization. The cooperation among the participants is conscious and deliberate;

the structure of relations is made explicit and can be deliberately

constructed and reconstructed.

A structure is formalized to the extent that the rules
governing behavior are precisely and explicitly

formulated and to the extent that roles and role
relations are prescribed independently of the

personal attributes and relations of individuals
occupying positions in the structure.

Organizations are collectivities oriented to the pursuit of relatively specific goals and exhibiting relatively highly formalized social structure

(Rational System)

Organizations are collectivities whose

participants are pursuing multiple interests;
both disparate and common but recognize the value of perpetuating the organization as an important resource .

The informal structure of relations that

develops among participants provides a
more informative and accurate guide to

understanding of organizational behavior
than the formal (Natural System)

Organizations are systems of independent activities linking shifting coalitions of participants; the systems are embedded in dependent or continuing exchanges with and constituted by the environments in which they operate (Open System)

Organizations are social entities ,goal
directed, deliberately structured and

coordinated activity systems linked to the
external environment

Types of Organizations ?Large multinational ?Small family owned ?Manufacturing/Services ?Profit businesses ?Non-profit organizations

Importance ?Bring together resources to achieve desired goals and outcomes

?Produce goods and services efficiently
?Facilitate innovation

?Use modern manufacturing and information technologies
?Adapt to and influence a changing environment ?Create value for owners, customers and employees

?Accommodate ongoing challenges of diversity, ethics, and motivation and coordination of employees Perspectives ?Open Systems ?Organizational Configuration framework

A System is a set of interacting elements that acquire inputs from the environment, transforms them and discharges outputs to the external environment. The need for inputs and outputs reflects dependency on the environment. And the interacting elements mean that people and departments depend on one another.
A system is made of various sub-systems These subsystems perform the specific functions important for organizational survival

ENVIRONMENT Raw materials INPUT People Information resources Financial resources

TRANSFORMA TION PROCESS Products Services OUTPUT

Five parts of an organization (Henry Mintzberg)

?Technical core
?Technical support

?Administrative support
?Middle management

?Top management

Organizational Design
?Structural dimension

?Contextual dimension

Structural dimensions ?Formalization ?Specialization ?Hierarchy of authority ?Centralization ?Professionalism ?Personnel ratios

Contextual dimension
?Size

?Organizational technology
?Environment

?Organization’s goals and strategy
?Organization’s culture

Organization design has five elements ?Structure

?Tasks
?Systems

?Culture
?Strategy

Learning organizations ?From vertical to horizontal structure

?From routine tasks to empowered roles
?From formal control to shared information

?From competitive to collaborative strategy
?From rigid to adaptive culture



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