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book Behavior in Organizations 9th Edition by Abraham Shani,James Lau cover

Behavior in Organizations 9th Edition by Abraham Shani,James Lau

Edition 9ISBN: 978-0073404936
book Behavior in Organizations 9th Edition by Abraham Shani,James Lau cover

Behavior in Organizations 9th Edition by Abraham Shani,James Lau

Edition 9ISBN: 978-0073404936
Exercise 2
What is meant by the term organization? Illustrate your understanding by applying your understanding to an organization that you know.
Explanation
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Organization
In common parlance, organization means institution. In context of management organization is defined as formal definition of work among the members of a firm. There also exists clear identification of authority and responsibility which helps in attaining organizational goals. Tasks and duties of members are defined clearly.
So, organization can be defined as a group of people, working together to achieve common objectives.
Features of an Organization:
• An organization comprises of individuals and groups of individuals.
• There is an orientation towards achieving some common goals.
• Organization consists of various functions.
• Functions in the organizations must be coordinated.
• Organizations are separate entity which exists independently of its members who may come and go.
Organizations can be of different types. The common types of organizations are:
• Line or scalar organization.
• Line and staff organization.
• Functional organization
• Project organization
• Matrix organization
• Freeform organization
One can discuss about the structure a coffee house chain follows and has gained world fame. And its success can be attributed to its organizational structure.
The organization's structure is such that it matches the needs of current business requirements. The organization has grown with the business which has helped the organization to optimize its processes and the quality of its products and services have improved.
The firm follows a Matrix structure. The firm comprises of functional structure where grouping is based on functions and CEO is the control center. The departments are at highest level of the firm and policies formulated by these departments are applicable to all the cafés of the firm. It facilitates monitoring and control.
The firm has geographical divisions to cater to the global market. Each geographic division is headed by geographic head say, senior vice president.
The organization has product-based divisions. These divisions are based on product lines that the firm offers. This structure helps in focusing on products of the company, which helps in innovation and development.
At the lowest levels there are teams which deliver products and services to the customers. Each café has organized team which helps in delivering services efficiently and effectively.
One cannot say that a structure is good or bad. Every firm must strive to follow such a structure that caters to the current business scenario and helps the organization to sustain itself in longer run. And it should also bear in mind that they should adopt such processes that uses the resources optimally and fulfill the needs of the customers.
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Behavior in Organizations 9th Edition by Abraham Shani,James Lau
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