‘Koontz and O ’Donnell’ opined - “organising involves the establishment of an intentional structure
of roles through determination of the activities required to achieve the goals of an enterprise and
each part of it, the grouping of these activities, the assignment of such groups of activities to a
manager. The delegation of authority to carry them out, and provision for co-ordination of authority
and informal relationships horizontally and vertically in the organisation structure”.
11.3 CONCEPT OF ORGANISATION It is the purpose of an organisation to make common men do uncommon things” - this phrasing is
Lord Beveridge’s . It is the test of an organisation that it make ordinary human beings perform better
than they are capable of, that it bring out whatever strength there is in its members and use it to make
all the other members perform more and better. It is the test of an organisation that it neutralize the
weaknesses of its members. In this concept following factors help to the management.
1) Division of labour: The total work considered necessary for the realisation of common objectives
is divided into activities and functions. Such division is essential because the work is too much for
any single individual. In a business organisation the work is divided according to functions like -
* Production
* Marketing
* Finance
* Personnel etc.,
2) Co-ordination: The divided work for purposes of realising common goals, it becomes necessary
to link up the various divisions, or activities so that all of them are unified and harmonised.
3) Accomplishment of goals or objectives: An organisation structure is built up around certain
clear cut goals or objectives, because it is the ideal way of making a rational pursuit of objectives.
11.3
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