Monday, July 6, 2009

What is an Organization

An organization is a group of two or more people that exists and operate to achieve clearly objectives. A business is an organization created to provide a product that consists of goods and services to customers for profit. To reach the objectives it is necessary to establish a framework of operating relationships between people and structure.

The formal organization is developed through a series of organizing steps. These steps consist of considering the objectives and plans, determining activities necessary to achieve objectives, classifying and grouping activities, and designing a hierarchy of relationships. The result of this process is a formal organizational structure.

Once the organization is developed, there are organizational concepts to be applied by managers to assist the organization in achieving its objectives. These concepts include:
Authority: it is the right to give orders. There are there types of authority: line, staff, and functional authority.

Delegation: it is the passing of formal authority to another person. Delegation involves assigning tasks, delegating authority, exacting responsibility, and holding a person accountable.
Span of control: it is the number of subordinates a manager supervises. There are four types of formal organizational strucutres developed by managers. They are line organizational, line-and-staff organizational, functional organizational, and matrix organizational. Each has its advantages, stage of development. Within the format organization is the informal organization.
The informal organization is a network. Of personal and social relationships that arises spontaneously as people associate with each other in the work environment. Managers need to recognize and work with the informal organization as its assists the managers in meeting organization objectives.

VOCABULARY:
objective :tujuan
profit :laba
framework :kerangka
result :hasil
resource :sumber daya
subordinate :bawahan
advantage :keunggulan, keuntungan
network :jaringan
authority :wewenang
span of control :rentang kendali
necessary :perlu
developed :yang dikembangkan
achieving :pencapaian
assigning :penentuan
delegating :pelimpahan
exacting :penetapan

QUESTIONS FOR COMPREHENSION
1. What is an organization?
2. What is business?
3. What are the objectives of a business?
4. How is an organization to reach its objectives?
5. What do you call the operating framework?
6. What do the organizing steps consist of?
7. What is delegation and what does it include?
8. How many types of formal organization structures developed by managers? what are they?
a. What is the informal organization?
b. Why do managers need to recognize and work with the informal organization?

No comments:

Post a Comment