Thursday, July 9, 2009

Getting organized.

What's an Organisation?

The definition of an organisations remains unclear as there are two synonymous meaning that it can be related to. To most of us, organisations simply means a how a group of people are arranged in a hierarchy manner to work efficiently. Not knowingly, organisations can also be treated as a process of planning appropriate activities for a particular enterprise to get the objectives achieved. As for my point of view, and by relating both of it, organisations are divided into 2 process, an early stage and a follow-up stage. In the early part, a group of capable people are appointed or elected to run the daily errands effectively. The follow-up stage revolves around the plannings towards getting missions accomplished by those elected, in a very orderly manner. In short, both the definitions can be treated as structuring. Structuring of manpower and structuring of activities to strive for aims.

As quoted by Buchanan and Huczynski, organisations are social arrangements for the controlled performance of collective goals. Social arrangements is a form of structure that enable people to work together in order to achieve goals. Every organisations divide responsiblities among the workers though larger organisations may normally have more formal structures. Controlled perfromance refers to an organisation's systems and procedures to contribute towards goals achieving. As for collective goals, they are the reason why an organisation exist. However, the setting of goals need to be SMART. (S-specific, M-measurable, A-attainable, R-realistic, T-timely)

Exapmles of organisations are: service companies, factories, retail companies, political companies, charities, local councils, the army and schools.

Why are organisations needed?

It is simply because an organisation can deliver results that is unattainable by individuals on their own. This is because an organisation enables the sharing of skills and knowledge, makes specializations possible and allows people to pool resources.

The sharing of skills for example, leads to the gathering of poeple of the same interest to start an organisation. People like to be in an organisation as they feel more secure and successful; want to be better of than the rest; and not forgetting about having more needs satisfied. So in short, organisations are needed to satisfy social needs.

Specialiasatioin is among the oldest organisational device whereby organisations or individual workers concentrate on a limited type of acvtivity. By concentrating in an aspect of work, they will build up a greater level of skill and increase their efficiency. Normally, an organisation will plan and arrange its output to use their resourses to the optimum so as to maximaise the profit. As we already know the idea of organisation enable poeple to work more efficiently, through the employment of the specialisation techniques. Specialization techniques involve the divison of labour. Both of the techniques enable an organisation to save time (task can be done more quickly than lone individuals), pool knowledge (knowledge and skills are shared between members in a particular organisation) and act as a power centre (an organisation have greater influence than a lone individual).

The specialisation of labour developed as industrialisation adavnced and popularized larger organisations. Manufacturers who run the manufacturing department of an organisations are greatly benefitted as:

  • Simple tasks encourage the usage of highly specific equipment.
  • Semi-skilled workers are substitutes for the highly skilled operatives.
  • Workers are in charge of a particular procesds. This will enable them to develop a high level of expertise and increse the rate of output.

*Modern industrialised economies apply the use of specialisation and the division of labour. However, both the techniques can only be benefitted along side with hierarchy, which is another organisational device.

How organisations are classified?

1.By Profit Orientation

PROFIT-SEEKING ORGANISATIONS

Main objective: maximise the wealth of the owners

Exapnded objective: to continue in existence(survival) ; to maintain growth and development; to make profit

Peter Drucker's suggestion on profit-seeking company:

  • market standing
  • innovation
  • productivity
  • physical and financial resources
  • profitability
  • manager performance and development
  • worker performance and attitude
  • public responsiblity

NOT-FOR-PROFIT ORGANISATIONS(NFO or NPO)

Main objective: any objective apart from profit seeking as primary

NFP view financial matter as constraint to operate.

Objective: aim to satisfy particular needs of their members or a society. However, the objectives of NFP can vary tremendously. For example: hospital aims to treat patients while a charity aims to provide relief for flood victims.

NFP is a mutual organisation. It is an organisation with no share holder and it is established by a group of people for the purpose of raising funds by the subscriptions of members. Mutual organisations are a voluntary NFP. Examples of mutual organisations: some building societies and trade unions.

Examples of NFP: schools, hospitals clubs, charities and government agencie.

2. By Ownership/ Control

PUBLIC SECTOR ORGANISATION

An organisation that control the public sector which provide basic government services.

Public sector includes services such as :police, military, public roads, public transit,primary education and healthcare for the poor.

PRIVATE SECTOR ORGANISATION

An organisation that comprise of private sector that is not controlled by the government.

Organisation are divided into profit-seeking and not-for-profit organisations.

Private sector includes : businesses, charities and clubs

CO-OPERATIVES

A jointly owned and democratically controlled enterprise by an autonomous association of people.

An autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations.

They are organised solely to meet the needs of the member-owners, not to accumulate capital for investors.

*co-operatives and mutual organisations are similar in the sense that both are owned by the members that they exist for. However, they deal with different goods. Co-operatives deal with tangible goods and services (agricultural comodities or utilitie) while mutual organisations deal with intangible goods and services ( financial services).


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