Notes On Essentials Of Sound Structure Of An Organization:

       Normally organizational charts of an entity outline personnel involved, positions, posts and a distinct hierarchy of reporting 'Who reports to Who' and can change as and when needed. On the contrary, organizational structure is based on a entity‚Äôs vision and its goals - long-term and short term, and the structure is normally fixed. However, if changes occur, they are likely to be the result of a new mission, rebranding or a major shift within the organization. A sound organizational structure is vital to all facets of a successful business organization.

       Structure of an organisation is the framework or edifice of Management.

       In the words of Albert K. Wickesberg, "the set of inter personal relationship which operates in the context of position, procedures process, technology and social environment comprises what is known as the organisational structure"

       It should be noted that organisation is a means to an end. Organisational structure is an important means in this respect. Good structure is therefore indispensable.

       According to Albert K. Wickesberg, the following factors needs to be considered for setting up of organisation structure.

1. Nature Of The objectives:

       The objectives of an organisation govern the structure of the organisation and selection of personnel. For instance, the organisation structure of a temple cannot be same like an oil refining industry.

2. Operative Activities:

       No individual or groups in an organisation does the same work. They may either be negotiating sales to a customer, or assembling a machinery or collecting Market informations, or in charge of any other task assigned. These operative activities and the inter- relations that exists among different task have an important bearing on the structure of an organisation.

3. Sequence Of Steps:

       The Sequence of steps is defined by the technology involved and tasks to be performed. This step sequence greatly influence the organisation structure.

4. Managerial Functions:

       The Managerial function of one level or department is different from that of another. The organisation structure should be devised in such a way so that it maximize the effective inter- relationship at all level.

5. Skill Limitations:

       Every individual in an organisation is different from each other in respect of their skill and ability. As such, the organisation structure needs to be flexible and adjust taking into account the limitations of human skill and ability.

6. Social Needs:

       The structure of the organisation cannot ignore the social needs of the individuals involved. Status, recognition, sense of belonging, job satisfaction promotional scope needs considerations.

7. Size And Scope:

       The smaller the firm, the more informal and loose become the interpersonal contacts and relationship. But they will be otherwise in case of big companies. So, the size of the organisation and its scope of performance exert an effective influence on the structure of an organisation.

Formal And Informal Organization:

       Organisation is essentially a matter of relationship- Man to Man, job to job, and department to department. These relationships among the personnel of an organisation are based upon their positions in the whole structure- formal and informal.

1. Formal Organisation:

       Formal organisation arises from the clearly defined relationship of duty, authority and responsibility. The advantage of formal organisation is that it sets the limit of behavior and association of individuals within the organisation. Here freedom means discipline and not license. This discipline is ensured by prescribing policies and procedures that every one needs to follow with spirit.

       The limitation of formal organisation is that it comes into being only it, the persons are in position to communicate with each other, have willingness to act and share a common purpose is Mechanical in nature and rigid with no space for initiative and innovation.

2. Informal Organisation:

       Informal organisation refers to relationship that develops outside the formal organisation without any defined behavioral patterns and set out procedure and regulations. This organisation originates chiefly through personal emotions, interests and feelings.

       The advantages of informal organisation is that it ensure mutual cooperation, social needs and personal satisfactory for achieving a common goal. Here friendship binds the knot of group for some common purpose. Informal organisation solves any problem that with the same attitude.

       Informal organisation usually corps up with formal organisation side by side and is not less important than the other. A manager cannot ignore this aspect and should utilize this informal relationship to develop high morale and team work among the employees.

       The limitation of informal organisation is that it may help or hinder efficient work performance. Management cannot be effective and expeditions unless it recognizes and makes use of informal organisation judiciously.

       The functions performed by informal organisation are:

  1. To work in the role of communication.
  2. To form groups for social needs and satisfaction.
  3. To maintain and enforce certain standards of conduct.
  4. To contribute to work accomplishment sharing job knowledge and help and train one another and new- comers.