Table of Content

BBS 1st Years -Principles of Management Unit:1 The Nature of Organization

 BBS 1st Year 
Principles of Management
Unit: 1 
The Nature of Organizations
1.1 Organization
1.1.1 Concept of Organization
1.1.2 Characteristics of Organization
1.2 Organizational Goals
1.2.1 Concept of Organizational Goals
1.2.2 Purpose/Importance of Organizational Goals
1.2.3 Types of Organizational Goals
1.2.4 Features of Effective Organizational Goals
1.3 Goal Formulation
1.3.1 Concept of Goals formulation
1.3.2 Process of Goals formulation
1.3.3 Approaches to Goal formulation
1.3.4 Problem of Goal formulation
1.4 Goal Succession 
1.4.1 Concept of Goal succession 
1.4.2 Forms of Goal succession
1.4.3 Reasons for Goal succession
1.5 Goal Displacement
1.5.1 Concept of Goal displacement
1.5.2 Reason for Goal displacement

1.1.1 Concept of organization
A group of two or more people associated for a common purpose is called an organization. In common language, an organization means an organization duly established in accordance with laws and regulations to carry out any work collectively. People present in the organization and work by dividing tasks to achieve certain objectives.
   According to Chester. I. Barnard, “An organization is a system of consciously coordinated programs of two or more persons or forces.”
   According to Burton, “An organization is a group of two or more people working together to achieve a common goal."
In conclusion, every organization has its own structure. A structure where members work collectively to achieve a common goal. There is a clear distribution of rights and responsibilities among the members. The size of the organization adds complexity to the structure and accordingly the division of tasks, delegation of authority and assignment of responsibilities. All organizations operate in an open system.

1.1.2 Characteristics of Organization
The characteristics of the organization can be mentioned as follows:
1. Association of people: An association is a common group of two or more people. They are grouped together to achieve a common goal.
2. Common goal: Common goal is the main basis of establishing an organization. It clarifies the reason for establishing the organization. The work of all the members in the organization is directed towards a common objective.
3. Division of Work: Division of work divides work into small parts based on the nature of work. Divisional work is assigned to different employees on the basis of competence, ability and experience. Division of work encourages the notion of specialization.
4. Coordination: Coordination creates harmony between the work of different departments in the organization. Under the leadership of the head of the office, there should be good coordination between the people of different units and departments of the organization. Coordination helps in the equal progress and progress of various departments of the organization.
5. Hierarchy of Authority: Every organization has its own structure in which the level of each member is determined. The chain of rights is determined on the basis of responsibility and accountability. In this, the role of the members from the highest level to the lowest level in the organization is determined.
6. Perpetual Existence: Almost all organizations are open for a fixed period of time. Organizational structure, objectives and members may change but this does not affect the existence of the organization. For this, every organization needs to adjust the business according to the changes in the environment.
7. Environment: An organization operates in a dynamic environment. Whether or not an organization survives forever depends on how it adapts to the changing environment. The organization has to absorb the internal environment as well as the external environment such as political, economic, social, cultural and technical.
8. Technology: Technology is the integrated form of knowledge, skills, intelligence and tools. Organizations use new technologies to do their work. Proper and latest technology helps to complete the work of the organization at a low cost as well as to increase the work efficiency.
Organizational Goal

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