ORGANIZATION

I. INTRODUCTION

An organization or organisation is an entity comprising multiple people, such as

an institution or an association, that has a collective goal and is linked to an external
environment. The word is derived from the Greek word organon, which means "organ" .The
word organization may convey at least 3 meanings: Firstly it may refer to the activity of
management in arranging people, tasks and resources in the most orderly and efficient
manner. Secondly it may also name the arrangement itself, the outcome of the organizing
activity. Thirdly, it may describe any number of businesses, behavioural and humanistic
concepts. It is often said that good people can make any organization pattern work. Some
events assert that vagueness in organization is a good thing in that it forces team work, since
people know that they must cooperate to get anything done. However there can be no doubt
that good people and those who want to cooperate will work together most effectively if they
knows the parts they are to play in any team operation and the way their roles relates to one
another. Designing and maintaining these systems of roles is basically the managerial
function of organizing.

II. DEFINITIONS OF ORGANIZATION

Organization is the form of every human association for the attainment if common purpose
and the process of relating specific duties or function in a whole.

-J D Mooney

Organization is a system of cooperative activities of two or more persons.

-Chester I Bernard

Organization consists of the relationship of individual to individuals and groups to groups

which are related as to bring about an orderly division of labour.

-Pfiffiner

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III. AIMS OF ORGANIZATION
1. To increase managerial efficiency in a number of ways.
Organization increases managerial efficiency in a number of ways. It provides
the structure, within which the functions of administration are performed .It avoids
delay , duplication or confusion in performance and remove, friction or rivalry among
personnel. Analysis of objectives of institution provides all pertinent activities.
Activities in turn are allocated to particular individuals. Assignment of fixed duties
helps to add certainty and promptness in their work.
2. To ensure an optimum use of human efforts through specialization
Organization ensures an optimum us of human efforts through specialization
and also make use of all resources, determines needs for innovative and new
technologies in terms of cost effectiveness and accomplish objectives. Details job
specification helps for right persons are placed in the right position on the basis of their
knowledge, skill and experiences.
3. To place a proportionate and balanced emphasises on various activities
Organization places a proportionate and balanced emphasis on various
activities .Money and efforts can be spent proportionately with the importance of
activities.
4. To facilitate co-ordination in the enterprises
Organization facilitates co-ordination in the enterprises. Different departments
and section, positions and jobs functions welded together by structural relationship of
the organization.
5. To provide training and developing managers.
Organization provides scope for training and developing managers. Encourages
individual's growth and development of personnel according to individual potentials
through job enrichment, training and participation.
6. To encourage individuals growth development according to individual potentials
through enrichment, training and participation.
Organization helps to consolidate growth and expansion of the enterprises or
institution ,It helps in growth and development of the establishment ,in planning for
need based change through appropriate division and allotment of works.

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 7. To invite creative and innovative ideas to working through adopting human
relation approach
Organization invite creative and innovative ideas by working through adopting
human relation approach
8. To prevent overlapping
Organization prevent growth of laggards, wirepuller,intriguers or other form of
corrupters. Unsound organization becomes the breeding ground of corruption,
dishonesty and such odd things.
IV. PRINCIPLE OF ORGANIZATION
A. General Principles

The task of the manager in planning organization becomes easier if he takes into
consideration lining the following general principles

1. Principle of objective:

The objective of an enterprise should be clearly laid down. Within the enterprise, there
should be unity and uniformity in the policies and objectives of different departments so that
every part of the organization, including the office, is geared to the attainment of these
objectives. Not only should the objectives be stated in clear terms, the method of achieving
them, too, should be indicated in detail and in precise terms so that the organizers may know
the type of organization that is needed.

2. Principle of Interrelated function:

Because organizations no longer have mutually exclusive function, but rather

integrated functions, the functional areas are interrelated. Because of the inter relationships
of the functions, the objectives of one function must be consistent with the objectives of
other functions. Further, similarities between various activities should be used as the basis for
determining the function to which each activity belongs. Otherwise coordination between the
activities will be seriously hampered of organization.

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3. Principle of Definition:

The duties, responsibilities, authority and relations of everyone in the organizational

structure should be clearly and completely defined, preferably in writing. An individual will
accomplish a task in a given period when the responsibility for the task is fixed upon that
individual.

4. Principle of work assignments:

The work assignment for each individual in the organization should take into
consideration the special strengths and talents of the individual. This means that an
individual should be given an assignment commensurate with his or her ability and interests.

5. Principle of span of control:

The maximum number of employees or subordinates that can be supervised

effectively by a person is known as the span of control. The span of control should be limited
to a reasonable number according to circumstances. A span of control of 6 subordinates has
been considered to be the most desirable.

6. Principle of unity of command:

The core of this principle is that a man can serve only one boss. It means that
instructions and directions to a subordinate must come from one person only. Each
subordinate must have one superior, to whom he should be answerable. This helps in
avoiding conflict in command and in fixing irresponsibility.

7 Principle of chain of authority (The Scalar Principle):

The chain of authority or command refers to the formal specifications of 'who reports
to whom within an organization. The chain of authority must be clearly defined for sound
organizational purposes. Every subordinate must know who his superior is and to whom
policy matters beyond his own authority must be referred for decision.

8. Principle of Commensurate Authority and Responsibility:

According to this principle, when an individual is responsible for a certain task, he

should be given the authority to carry out that task. Without commensurate authority and

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responsibility, he cannot be held accountable for the unsuccessful completion of the tasks
because he has very little control over the situation.

9. Principle of Ultimate Responsibility:

The responsibility of a higher authority for the acts of his subordinates is absolute, that
responsibility to his worker to do a given job, and the worker commits a mistake, the
supervisor is the one accountable to his superiors. He cannot escape responsibility by saying
that the mistake was committed by a particular worker.

10. Principle of Flexibility:

Organizational structure must be flexible considering the environmental dynamism.

Sometimes, dramatically change may occur in the organization and in that condition,
organization should be ready to accept the change. The structure of an organization must be
flexible so that adjustments, necessitated by changed circumstances, may be planned and
incorporated in it.

11. Principle of division of work:

Specialization in organizational functions is necessary for the most effective

attainment of objectives. Specialization depends on division of work. The total activities of
an enterprise should be divided and grouped into departmental, sectional and individual to
facilitate division of work.

12.Principle of discipline:

Fayol has emphasized that a sense of discipline should be present in all employees of
the organization at all level so that the organization can perform and achieve its objectives in
the best possible way. For maintaining discipline in the organization managers should
consider clear explanation of the rules, effective supervision, reward system on better
obedience and possible provision for penalty on non obedience. Discipline is vitally
important in all types of organizations. In its absence, it is difficult to achieve success.

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13. Principle of continuity of operations:

The form of an organization should he such that it facilitates the continuous

performance of all the activities necessary for the continuance and growth of the enterprise.
All performance and actions should be continuous on its way.

14. Principle of employee participation:

Employees should be encouraged to participate as much as possible in the decision

making process. By encouraging participation, employees are given recognition, and are
motivated to work harder. But in spite of participation by employees in the decision making
process, the ultimate responsibility for the decision must rest with the manger or supervisor.

B. Principles of organization by Henry Fayol

1. Hierarchy
Hierarchy means the rule of control to higher to lower. Any organization like a
pyramid broadest at the base and tappering towards the top. I n this pyramid there is a
hierarchy. Organization is essentially the division of functions among a given number of
persons. The distribution of functions and responsibilities is both horizontal and vertical. An
organizational structure grows horizontally and vertically .When additional levels are added
in an organization structure, it is called vertical growth. But when more functions or more
positions are added without increasing the number of level, it is called horizontal growth.
Vertical distribution creates levels like top management, middle management and low level
management supervision and specific performance.
However, due to the difference in nature of responsibility of various levels,the
difference in the salary scales as between different levels and difference in their
qualification and qualities of personal levels,superior,subordinate relationship does emerge
in the organization.It is also called as scalar process. This process is the vertical division of
authority and definite assignment of duties at various levels. The degree of authority and
corresponding responsibility will be defined.It helps to rule or control of the higher to lower.
Hierarchy consists in the universal application of the superior-subordinate relationship
through a number of levels of responsibility reaching from top to bottom of structure .Each
of the levels will be immediately subordinate to the next higher.eg.

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Every organization must have its scalar chain but it should work with proper confidence and
loyalty between superior and subordinates at each level, to reduce delay.

The advantages of scalar principles of hierarchy will includes:

a. It is an instrument of organizational integration and coherence.

b. The scalar chain serves as a channel of communication upwards and downwards.
c. The rule of through the proper channel created by the scalar principle ensures that there
will be no short circuiting procedures or ignoring of the intermediate links.
d. It establishes below the top executives, a number of subordinate levels of each of which
is centre of decision for specified matters of a less important nature.
e. It helps to clarify and define the relative positions and responsibilities of each post in the
organization.
The disadvantages of hierarchy is the delay inevitably caused every proposal or actions must
be laboriously climb up the various steps of the ladder and descent to get disposed down to
get disposed off ,eg .in a Directorate of Health and Family welfare services , a case worker
of nursing sections draft a proposal for transfer of a nurse, submits first to office
superintended ,then it goes to Asst. Administrative officer, then goes to chief Administrative
officer, Finally reaches the Director, then draft approved by the director ,reaches the
caseworker of nursing section in the same way leading to delay.
Hierarchy provides the much needed channels of communications in the organization from
top to the bottom and bottom to the top. It is also built in facilitates delegation of authority.
The general function of hierarchial structure are as follows:

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  Fixing the responsibility
 Providing leadership with areas of description at successive levels
 Providing means of exerting influence and exercising fellowship.
 Making any particular organization and the general government managable.
 Making it acceptable
 Determining the levels at which decision of various kind be made.
 Providing for ready movement of decision making from one level to another.
 Bringing to bear relevant ,competing complementary interest, functions and view
points.
2. Delegation
It is the process of assigning responsibility and authority to co-worker/subordinates
and ensuring his accountability. It is the process by which a manager assigns a portion of his
or her total work load to others. Delegation of authority/responsibility always remains with
the superiors. It helps to enable the manager to get more work done. Helps to develop
subordinates. By participating in decision making and problem solving, subordinates learn
about overall operations and improve their managerial skills. In some instances, subordinates
may have more expertise in addressing a particular problem than the manager does. For e.g.
the subordinate may have had special training in developing information system or may be
more familiar with a particular product line or geographic area.
 Step 1 : the manager assigns responsibility or gives the subordinates a job to do.
 Step 2 : along with the assignment the subordinate is also given the authority.
 Step 3 : finally the manager establishes the subordinate’s accountability, i.e. the
subordinate accepts an obligation to carry out the tasks assigned by manager.
The delegated authority still belongs to the principal, but its de facto exercise is the sub-
ordinate now ordinate or agent. Delegation implies transfer of certain specified functions by
the superior to the subordinates authority. The subordinate authority acts as the agent of the
superior authority and the superior always retains the right to issue directions to revise
decisions. In other words, delegation of responsibility always remains with the superior.
Delegation is the process of assigning responsibility and authority to co-worker and ensuring
his/her accountability. One person constitutes only one manpower. Wherever a person's job
grows beyond his/her capacity, his/ her success lies in his/her ability to multiply himself/

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herself through others. Delegation is the means by which he/she can share his/her duties with
his/her immediate subordinates and the process is continued until manage-rial work reaches
supervisors and the operating work is assumed by operators.
Principles of delegation
There are four fundamental principles which serve as guides for effective delegation.
a. Assignment of duty in terms of expected results.
b. Parity of authority and responsibility .While assigning duties to subordinates,there should
be equality of authority and responsibility.
c. Clarification of limits of authority that permits subordinates to exercise initiative to
develop their personal capacity through freedom of action and to know their area of
operation.
d. Unity of command : As employee should receive order from one superior only. So
subordinates should always be placed under the guidance, control and supervision of one
supervisor or superior who will set up work priorities and will arrange for cooperation.
Advantages
a. Delegation serves as a vehicle of coordination .The various levels of the organization
are used more appropriately.
b. A sound system of delegation tends to develop an increased sense of responsibility
and enhanced potential work capacity of individual employees.
c. It reduces the executive burden, it relieves the superior of time consuming ,minor
duties and allows him to concentrate more effectively on major responsibilities of his
own position.
d. Delegation minimize delay when decision have no longer to be referred up the line.
e. Proper delegation of authority is conductive to an effective control over operation.
f. As delegation provides the means of multiplying the limited personal capacity of the
superior it is instrumental for encouraging and diversification of business.
g. Delegation permits the subordinates to enlarge their jobs ,to broaden their
understanding and to develop their capacity.
h. Delegation raises subordinate position in stature and importance and importance and
increases their job satisfaction.

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Effective delegation is a more sophisticated process requiring" professional skills. Delegation
involves matching aspects of work required to carry out the prescribed nursing orders. With
the most appropriate personnel while maintaining professional standard. There are three main
reasons for nurse, why attempted delegation fails to produce desired results:
1. Nurses fail to recognize and incorporate the principles of effective delegation.
2. Nurses do not recognize that habits ingrained from old practice patterns prevent
improvement in delegation skills.
3. Nurses are unwilling or unable to view delegation from the perspective of the delegate.
As stated earlier delegation depends upon a balance of responsibility, accountability and
authority. Responsibility is the condition of accepting important duties or obligation, whereas
accountability in the condition of being answerable and an authority is the right and power
to determine ,influence of evaluate.
There are five basic concepts that build the foundation for effective delegation will
include:
1. Delegation is not a system that reduces responsibility. It is a way to make responsibility
meaningful.
2. Responsibility and authority must be delegated equally.
3. The process of delegation allows staff nurse to assign responsibility; extend authority and
create accountability within the resource group.
4. The concept of empowerment applies to all members of the resource group.
5.The caregiver must play an active role in accepting the delegating patient care.
3. Authority and Responsibility
Authority is the right or power to give orders to the sub-ordinate. It is the right of
person to command other person to do things and generally to get the work done by them.
Responsibility means the duty which the subordinate is expected to perform by virtue of his
position in the organisation. Responsibility must be expressed either in term of functions or
in terms of objectives. When the subordinate is asked to produce a certain number of pieces
of a product, the responsibility is created in terms or objectives.
4. Division of Labour
This is the principle of specialization which applies to all kind of work. The more
people specialize, the more efficiently they can perform their work. Specialisation increases

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output by making employees more efficient. This principle is equally applicable to
managerial work as to technical work. It refers to the division of work among various
individuals in the organization to bring about specialization in every activity. Fayol observed
that specialization belongs to the natural order. It tends to increase efficiency. It helps to
avoid waste of time and effort caused by changing from one work to another. But when
carried too far, it leads to loss of skills and craftsmanship of the employee, and makes the job
monotonous and less interesting. Since division of work makes the job less satisfying,
management practice of today gives serious thought to the possibility of job enlargement as a
tool of job satisfaction.
5. Discipline
Discipline means getting obedience to rules and regulations of the organization.
According to Fayol, discipline is obedience to agreements reach between parties in the
organization. Employees need to obey and respect the rules that govern the organization.
Discipline is necessary for the smooth running of the organization. Good discipline is the
result of effective leadership, a clear understanding between management and works
regarding the organization’s rules and the judicious use of penalties for violation of the rules.
6. Unity of Command
This principle emphasises that one sub-ordinate should receive orders from one
superior only. If he receives order from more than one superior, he will not be able to carry
out the orders in a proper manner. Fayol observed that if this principle is violated, authority
will be threatened. Dual command is a permanent source of conflict. Therefore, in every
organization, each sub-ordinate should have one superior whose command he has to obey.
Unity of command helps clarify authority and responsibility relationships in the organization.
There will be no possibility of the subordinate receiving conflicting orders. The organization
structure will be simple and management will be more effective because there will be no
confusion as to responsible to whom.
7. Unity of Direction
Fayol expressed this principle to mean one head and one plan for a group of activities
having the same objectives. It is the condition essential to the unity of action, co-ordination
of strength and focussing of efforts. Unity of direction is provided for by sound organisation
of the body corporate, unity of command cannot exist without unity of direction, but it does

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not form it. The principle of unity of direction is useful for designing and functioning of the
organization structure i.e. creating departments and sub departments. Thus, sales activities
having common objective should constitute one group, have one plan, and be the
responsibility of one manager.
8. Co-ordination
In every organization synchronization and harmonization of the various departmental
activities are indispensable to achieve the desired objectives. To ensure harmonious and
smooth functioning of an enterprise, the activities in all areas, departments, decisions etc. are
required to be pulled together. At the same time, it is necessary to avoid the splintering
efforts that may destroy the unity of action through their cross purpose of working or
interdepartmental conflicts. All these require effective co-ordination. Co-ordination is the
integration, synchronization or orderly pattern of individual and group efforts to achieve the
organizational objectives. Co-ordination affects the people, groups, organizational units and
all activities within every enterprise. Lack of co-ordination causes tremendous waste of time,
effort and money.
9. Centralization Vs Decentralisation
It means concentration of authority at one place or at one level in the
organization. On the other hand, decentralization refers to the dispersal of authority to the
lower levels in the organisation. It is the matter of findings the optima-degree for the
particular concern. In small organization where the manager’s orders go directly to sub-
ordinates there is absolute centralization where the manager’s orders go directly to sub-
ordinates there is absolute centralization. In a big organization, where the authority has been
delegated to lower levels to the maximum possible extent, it cannot be called to have
complete decentralization because the ultimate authority rests with the top management.
Thus centralization of authority is always present to a greater or less extent in every
organization.
10. Integration and Disintegration
Administration branch should be fully integrated. According to integration
principle, several administrative units combine together to make a single whole organization.
While under disintegration, every service is treated as an independent unit in itself and hear
no direct relation with each other, under integrated administration, whole administration is

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centred in one and he is the chief executive. An integrated administrative system ,therefore,is
one, all the parts of which are connected together through common ultimate subordinates to
the Chief Executive of the country. In such system, the line of the authority runs unbroken
from the Chief Executive, through various levels to all the parts of the system, so that there
are no loose ends anywhere.
A disintegrated system on the other, hand, has got a number of loose ends in
the shape of in-dependent establishments and directly elective persons at which or whom the
line of authority from the Chief Executives stops short and it is broken. An administrative
system is called integrated in which all the executive authority is conferred by law or
constitution on one single person who thereupon becomes Chief Executive, e.g. President of
India, Prime Minister and other Executives. The reverse of it is a disintegrated system where
executive authority is distributed by statute or constitution among a number of coeval bodies
or agencies or persons, e.g. UPSC, KPSC; Election Commission, Comptroller of India.
Integrated administration facilitates coordination and disintegrated administration creates
anarchy and conflict.
11. Span of control
Span of control means the number of subordinates an officer can effectively supervise.
It is simply the number of subordinates or te units of work that an administrator can
personally direct. In other words, the number of subordinates that a supervisor can personally
direct or supervise is known as 'Span of control'. There is no agreement as to the exact
number ,but there exist a general agreement that the shorter the span ,the greater will be
contact and consequently more effective control. That there is a limit to the span of controls
of every person or officer is readily admitted. The span of control is related to psychological
problem of span of attention, Span of control nothing but the span of attention applied to
these works of supervision and control of subordinates. But the span of control greatly
determined by the type of activity and by the supervisors capability. For example the
effective supervision. It is agreed that span of control does exist at each level of supervision
and cannot be exceeded without danger of a breakdown, and it is recognized that the span of
control varies with four factors, that is functions, personality, time and space.
Functions means the type of the work to be supervised, personality means competence of
supervisors and the subordinates concerned; time refers to the age of the organization

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 concerned ,and space implies the place where the work to be supervised is located. It is deal
that one can supervise more subordinates with homogenous function .For example, medical
officers can supervise doctors, nursing officers can supervise nurses, engineers can supervise
engineering subordinates. It is very difficult task that one can supervise subordinates with
heterogeneous functions. Medical officers cannot supervise effectively engineering
subordinates or an engineer can't supervise the doctors.

C. Principles of organization in nursing

Board of Management or any such organization for Government,

Municipal or Private Hospital

Director, Superintendendent or Dean of the hospital

Head of various Director Assistant Director

Departments Nursing superintendent
Or Matron

Nursing supervisors Director Assistant

Or clinical Instructors Nursing Superintendent
Or Matron

Nurses
Work clerk Hospital ward servants
Staff Auxillary Student Private If any Auxillary Personnel
If any Ayahs ,cleaners

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V. TYPES OF ORGANIZATION

Following are the various types of organizations:

a. Formal Organization
b. Informal Organization
c. Line Organization
d. Staff Organization
e. Line and Staff Organization
f. Committee Organization
g. Social Organization
a) Formal Organization

The formal organization is a system of well-defined jobs, each bearing definite

measure of authority, responsibility and accountability to enable the people of the enterprise
to work most effectively in accomplishing their objectives and organizational goals. In the
formal organization, the work that each individual does is part of a larger pattern;
coordination proceeds according to a prescribed pattern in the formal organization. It setup
boundaries and path which must be followed to achieve the objectives.

Components of organization

According to George Terry there are four basic components of a formal organization

a. The work-which is divisionalized

b. Persons-who are assigned to and perform the divisionalized job
c. The environment - under which the work is done and
d. The relationships- among persons or work units.

A formal organization is systematically planned and is based on the principle of delegation of

authority and principles of responsibility. It makes use of organization charts and attempts to
maintain a balance among the various types of work to be done, each being given the
importance that its true value deserves.

Advantages

1. Avoidance of role conflict

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 2. Avoidance of overlapping of authority and responsibility
3. Advantages of specialization
4. Defining and standardizing systems, rules, policies and procedures of an enterprises
etc.

Limitations

1. It does not recognize informal relationships

2. It creates problem of communication
3. It emphasizes structure rather than people.
b) Informal Organization

It refers largely to what people do because they are human personalities. Their actions
are directed in terms of needs, emotions and attitude and not only in terms of procedures and
regulations. Organization is nothing systems of employees and employees groups which
develop in any work environment for achieving explicit goals. In the informal organization,
people work together because of their personal likes and dislikes. Informal group may extend
its activities to the groups as well as to the existing one within the organizational unit.

It is an accepted fact that wherever people work together, social relationships and groupings
are bound to arise on account of their frequent contact with one another which give rise to
informal organizations. Such organizations are not needed by formal organizations, and
therefore they find no place in organization charts or manuals. They establish their own
unwritten rules, which are usually followed by individuals in the formal organization; but
they form an integral part of formal organizations.

The advantages of informal organizations are:

1 . It provides a useful channel of communication

2.It covers the deficiencies of the formal organization

3. It influences the formal organization to work carefully and

4 .It bring mutuality among group members who derive job satisfaction by an exchange of
ideas and views etc.

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The limitations are:

1. It may tend to act on the basis of mob psychology

2. It may be a source of rumors of wastage of time
3. It may tend to oppose change

The informal organization is a reality in every enterprise, and every manager should accept
this fact. He should utilize it as a part of the total organization, as an effective channel of
communication; as a forum for the exchange of idea; and as an instrument for obtaining
support from the informal group. As a matter of fact, informal organizations are
complementary to formal organizations and are in no way less important.

c) Functional organization

Functional organization is an organizational structure which combines all aspects of

one activity or several related activities which are called "Functions" such as production,
finance, marketing, HRD etc. It is structured according to products dealt or service rendered
in the organization. It is the most logical and basic form of departmentation. Functional
organization leads to specialize in business skills. It also makes it easier to mobilize
specialized skills to needy areas of the business.

Advantages of Functional Organization

1. Specialization : It ensures maximum use of the principle of specialization at every work

point

2. Efficiency: Since the workers have to perform a limited number of functions, their
efficiency would be very high.

3. Mass Production: Due to specialization and standardization, large-scale production can

be undertaken without much inconvenience.

4. Co-operation: As there is no scope for one-man control in the organization, there is the
possibility of promoting cooperation.

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5. Relief to the Executives: Since instructions from specialists flow directly to the lower
levels, the line executives are free from worries about the technical problems faced by the
workers.

6. Flexibility: Any change in the organization can be introduced without disturbing the whole
organization and hence there is an element of flexibility in this type of organization

Disadvantages of Functional Organization

1. Conflict among Foreman: Under this type, foreman of equal rank will be many in
number and this may lead to conflict among them.

2. Discipline: Since workers have to work under different bosses, it is difficult to maintain
discipline among them.

3. Lack of Co-ordination: There are several functional experts in the organization and this
may create the problem of coordination.

4. Speed of Action: As control is divided among the various specialists, the speed of action is
very much hampered.

5 Lack of Fixed Responsibility : If there is any unsatisfactory progress, it is difficult to the

top management to fix responsibility.

6. Expensive: As a large number of specialists to be appointed under this system, it is very

expensive and small firms cannot afford It

d) Line Organization

The line type organization is commonly used for small enterprises, especially by
retailer and manufacturers having perhaps seven to eight employees. It has outstanding
advantages: quick decision-making is fostered.This type of organization has inherent
disadvantages: executives tend to become overloaded with too many duties; specialization is
not practiced; management members may be difficult to replace; and insufficient time and
effort is given to activities such as managerial planning, research and development, and
overall controlling measures.

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Advantages of Line organization

The advantages of line organization are:

1. It follows the principles of chain of command and single accountability

2. Authority and responsibility are clearly stated and identified
3. Effective control can be exercised over supervisors
4. Discipline is no problem
5. It ensure flexibility and quick action
6. It is simple uncomplicated and easily understood

Disadvantages of Line organization

1. It is rigid and suitable only for small enterprises where the number of employees is small.
2. The entire organization becomes dependent on a few line supervisors or executives. Their
absence may be fatal to the organization.

3. The services of functional specialists are not utilized. Specialization is difficult to practice.
4. It is sometimes characterized by an absence of team work, working together towards a
common end.

5. In such an organization, managerial planning, research and development activities may be

neglected because of greater reliance on line authority.

e) Line and Staff Organization

The line authority remains the avenue of command or performance of the work. It
consists of the authority relation relationships between lien managers. Generally speaking
most staff managers do not exercise their staff authority along the channels of line authority.
Staff managers exercise their proper staff authority to help the managers who command to
achieve work performance. What is a line manager and what is staff manager depends on the
type of authority possessed.

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Types of staff

a. General staff

Such staff is located at the head office/central office/corporate office to assist and
advise top management on problems faced by the organization in general and shared by
different departments.

b. Specialized staff

It refers to an arrangement where each line official has an advisor or personnel

assistant. Such staff provides advice and service to the line executives with whom they are
attached.

Advantages

1. It enables an enterprises to secure the full benefits of the specialized knowledge o its staff.
2. It permits line personnel to concentrate on the basic activities of business because the
necessary advice and services are provided by the staff .It thus efficiency and
performance.
3. The principles of the unit of command and unit of direction are followed, for line
executives exercise full authority over their staff.
4. It facilitates executive training and management development.

Disadvantages

The disadvantages of a line and staff organization are

1. It often creates confusion between line and staff executives.

2. If staff undermines line authority, or if line ignores staff's advice, a conflict may arise and
the job of the chief executive may become complicated. A lot of his time may be wasted
in the resolution of line and staff conflicts.
3. Staff authority, because it is not responsible to a higher authority, may act recklessly.
4. Line authority may, by not implementing the advice of the staff, make the Staff
absolutely ineffective.
5. The line department may not admit and probably may not realize that without staff help,
it would do a poor job.

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f) Committee Organization

It can be defined as: “A body of persons elected or appointed to meet on an organized

basis for the discussion and dealing of mattes brought before it”. The committee usually has
a formally recognized and permanent place in the organization structure. It makeup, duties,
membership and decision-making power may be carefully spelled out.

The reasons for the widespread use of committees as given below:

a. Expert and collective knowledge can be concentrated upon a specific problem.
b. Coordination is assisted
c. Too much authority concentrated in one person is prevented
d. Social values are provided
e. Motivations is supplied
f. Education of members is promoted

Advantages of Committees:

1. A committee may consist of all the departmental heads as members. In the committee
meetings, the members are enabled to understand the various problems faced by the other
departments in the Organization and this promotes better understanding among the
departmental heads.

2. In committee meetings, decisions are taken after taking into consideration the different
views of its members and thus the committee provides a forum for the pooling of knowledge
and experience of many persons.

3. The committee encourages team spirit and co-operation of various departments in the
execution of the plans.

4. The committee's work develops awareness of the problem of other departments among the
members and this promotes co-ordination of the various activities of an enterprise.

5. In committee meetings, members discuss the various organizational problems and hence it
can be said that the committee is an excellent means of transmitting information and ideas to
the interested organizational members.

21
6. Members of the committee take part in the decision-making process and because of this;
they will not resist the implementation of the decisions.

Disadvantages of Committees

1. Members with different background and ideals may express different views on the same
subject and this may cause delay in taking a decision.

2. Committee is an expensive form of organization because of the huge amount to be spent

for convening committee meetings.

3. In case there is no mutual confidence among the members, not only will they fail to
appreciate each other's views but also misrepresent each other's statements.

4. Because of the. large number of members in a committee difficult to maintain secrecy

regarding the committee's decisions. regarding be individually held

5. No member can be individually held responsible in case the committee takes incorrect
decisions .Because of this members may not actively participate in the deliberations of the
meeting.

6. Decision may be arrived at on the basis of compromise among the members or the
decisions may reflect accommodation of various viewpoints of the members and because of
this, the quality of decision is watered down and not the best est from anyone's viewpoint.

VI.THEORIES ORGANIZATION

Organizing basically involves analysis of activities to be performed for achieving

organizational objectives, groupings them into various department and section so that can be
assigned individual and delegations them appropriate so that they can carry the work
properly. This are various approached to carry these activities. Organizational
theory consists of approaches to organizational analysis. Organizations are defined as social
units of people that are structured and managed to meet a need, or to pursue collective goals.
Theories of organizations include rational system perspective, division of labour,
bureaucratic theory, and contingency theory.

22
In a rational organization system, there are two significant parts: Specificity of Goals and
Formalization. The division of labor is the specialization of individual labor roles, associated
with increasing output and trade. Modernization theorist Frank Dobbin states "modern
institutions are transparently purposive and that we are in the midst an evolutionary
progression towards more efficient forms". Max Weber's conception of bureaucracy is
characterized by the presence of impersonal positions that are earned and not inherited, rule-
governed decision-making, professionalism, chain of command, defined responsibility, and
bounded authority. The contingency theory holds that an organization must try to maximize
performance by minimizing the effects of varying environmental and internal constraints.

Definition of theory
Fred IV kerlingar defines theory as “a set of interelated constructs (concept)
definitions’ and propositions’ that present a systemic view of phenomena by specify relations
among variables with the purpose or explaining and protecting the phenomena” Applying the
concept of theory in organizations it can be defined as “the study of structure and design of
organization”
Tosi defines organization theory as “a set of interrelated concepts definitions and
propositions that present a systematic view of behavior of individuals, groups and subgroups
interacting in some relatively patterned sequence of activity the intent of which is goal
directed”
Features of organization theory
a) It contains various formulations dealings with organizational phenomenon
b) It can be treated as macro examinations of organization because it analysis whole
organization as a unit.
It prescribes relationships among variables in the organization. To understand the
organizations of health care agency or any other kind of institution one must be familiar with
organizational theory.

Types of theories of Organization

There are three principal theories of organization.

1. Classical organization theory

2. Humanistic organizational theory
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 3. Modern organizational theory
1. Classical doctrine / organization theory

It is the oldest theory of organizational it emphasis rigid, centralized control of worker

to promote high production. An institution organized under classical theory tends to treat
workers in mechanical yet objective way. The institution is very efficient and effective in
accomplishing its goal.

a. Many theorist have contributed to classical organizational theoryMax weber in late

1800”s” and easily 1900‘s’ have developed the concept of bureaucracy as ideal forms
of organization
b. Fredrick Taylor in 1911 proposed principal of scientific management which focuses
primarily on improving individual productivity.
c. Honey favor in 1940’s laid foundation for classical management function of planning,
organizing controlling and evaluating.
d. The Classical writers viewed organization as a machine and individuals working in it
as different components of this machine. They believed that efficiency of organization
can be increased by making each individual more efficient:
It is originated from the writings of classical management thinkers such as Taylor and
Fayol. It is the oldest theory of organization :
i It emphasizes on the direction on the detection of errors occurred and hen
correction. It aims at maximizing control.
ii It focuses on objectives and tasks and not on the human beings performing the
tasks. It deals with formal organization structures.
iii It believed that efficiency of organization can be increased by making each
individual more efficient.
iv It is based on organization as a machine and individuals working in it as
different components of this machine.

Characteristics or contributions of classical organization theory

a. Structural relationships among various tasks, activities and people.

b. Parity of authority and responsibility.

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 c. Span of control
d. Line and staff relationship
e. Unity of direction
f. Unity of command
g. Delegation of authority
h. Scalar chain i.e. hierarchy of authority
i. Division of labor and departmentization.

The classical theory has been developed round the following principles or pillars:

Principles or Pillars

a. It regards organization as a closed system instead of open system. Thus it ignores the
influence of external factors on organization and its members.
b. It takes static view instead of dynamic view of the organization.
c. It is based on certain principles which are based mainly on experience and not tested
by scientific researches. It is an authoritarian theory.
d. It believes that people at work can be motivated solely through monetary incentives.
e. It ignores human aspect and views human beings as components of the organization
machine.

Concept of the theory

This theory is based on formal organizational strict known as bureaucracy and on

individual productivity kept elements or bureaucracy includes:

a. Centralized authority, structure

b. Highly specialized division of labour
c. Rigid hierarchy or management
d. Rigid rules and regulation
e. Routine formal communication and detail record keeping
f. Emphasizes task communication, efficient operation and high individual productivity.
g. Views mentally reward as primary incentive for encouraging high individual
productivity.

25
 h. Promotes many level of management with in an organization with each level
overseeing one aspect of work and employees developing expertise in particulars task
or set of task.
i. Promotes managers rigid, yet fays control of employee and employee’s strict
obedience to those in authority.

Application to nursing

a. Most health care organization is structured based on applied principals of classical

organizational theory.
b. Health care organizations have specific chains of commands, clearly delineated levels
of authority written policies and procedure, specific rules and regulations for
employees.
c. Health care organization emphasizes tasks efficiency and productivity in patient care.
d. Functional and team system or patient care are based on this theory
e. Nurse and other professionals receive training, in the form of in-service and
orientation, to job expertise.
f. Personnel receive monetary rewards for their work
g. In future health care organization may become move flexible structure with
decentralized authority.
2. Humanistic organizational theory

It was the demonstrated lack of concern for the workers that led to the formation of
new theory of organization in 1930’s. This theory is also known as behavioral or new
classical theory. It identifies two major functions of organizations. One is maintaining the
internal balance that is social organization of the workers through which they satisfy their
own desires and needs by working together. Second is maintaining the external balance that
is economics much this therapy grew out of the Hawthorne experiment a study done between
1927 and 1933 researchers form Harvard University.

 The major assumption- people desire social relation ship, respond to group pressure a
search for personal fulfilments.

26
 The Hawthorne experiment studied certain as per of classical organization theory in
particular the relationship between working conditions and working productivity.
 Researchers discovered that various psycho and social factors in work situation exert
more influence on productivity than do actual physical condition.
 Hawthorne experiment altered the course of organization study and moved it towards the
exploration of organization the informal organization all structures.
Concept of theory
 Humanistic organizational theory is concerned with formal and informal organization
structure and with the people working with the organization.
 Focus of group productivity rather than on individual productivity and factors which
increases or decreases it.
 Promote general job satisfaction or workers because according to this theory, concern for
workers need, as well as for profit and production will lead to improve production and
economic effectiveness.
 Promote workers morale
 This theory has led the way for active study of informal and formal structure.

Application to nursing

 Staff nurse must understand the informal and formal structure of health care organization.
 Nurse Managers fosteling or group cohesion and loyalty encourages the nurse to work to
capacity even certain work environment is less than ideal.
 Encouraging staff nurse to participate in planning decision making, improve decision
making improved marale and increases productivity.
 Health care organization follow humanistic principle when it address employees social
needs by providing non-monetary benefits/ rewards as heal benefits and an site child care.
 Primery patient care delivery is based on human organizational thearoy.
E.g.: primary nursing which aims at quality of patient care.
3. Modern organization theory

This theory began in late 1950’s and early 1960’s as researchers recognized that in the
humanistic as well as in classical approach something was missing.This theory consists of
two main approached

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 1. Systems and Contingency
2. Human system
1. System and contingency: - This theory comes from field of sociology, economics,
Mathematics, engineering and administration but its unifying stand is looking at human
system in their totality.
2. Human system on their totality:- This theory continues to evolve today and as a result
of this continuing evolution, modern organization theory takes many forms.
a) Matrix theory
This stresses importance of team built directly into the organizing structure, team
communicate and co-ordinate with high management and with subordinates affected,
teams have authority make decision and implement them.
b) Organize theory
It is similar to system theory stresses interrelates needs of phenomena. It’s not
possible to deal with problem in isolation.
c) Technical theory

Emphasize role of technology with in organization shapes communication and

workers rock and responsibility. Provides workers with access to rapidly and accurately.

d) Decision theory

Describes mechanisms of organization. Used to identify problems and needs and

how decision are based an information.

Use of organizational theories by health care services

It is important for the nurse- leader to know the theory of organization used by health
care.

a. Facility used by health care facility in which she functions. The treatment of employees
is
b. Determined by theory and based an determination the nurse leaded may decide whether
or not
c. Most hospital and public health agency are & till organized according to the classical
approach i.e., high production at low labor cost.

28
d. Many Hospitals have conducted time and motion studies to determine nurse-patient ratio.
When a hospital administrator determines through such studies, that a 1-5 nurse – patient
ratio is necessary, he or she is using the principles of scientific management.
e. Most hospitals still have centralized organizational structure. All authority and
communication come form and go to top level.
f. Some health care facilities try to use the humanistic approach. Though still centralized,
such institutions may try to decrease the number of levels in the institute.
g. Another possibility is that some departments in an institution are humanistic while others
including centre hospital administration are classical.
h. Few health care facilities have attempted to organize according to modern organization
theory, because administrating are comfortable with classical theory.
VI.MINIMUM REQUIREMENT FOR AN ORGANIZATION
1. Communication

a) Effective Communication is significant for managers in the organizations so as to

perform the basic functions of management, i.e., Planning, Organizing, Leading and
Controlling.

b) Communication helps managers to perform their jobs and responsibilities.

c) Communication serves as a foundation for planning. All the essential information must be
communicated to the managers who in-turn must communicate the plans so as to
implement them.

d) Organizing also requires effective communication with others about their job task.
Similarly leaders as managers must communicate effectively with their subordinates so as
to achieve the team goals.

e) Controlling is not possible without written and oral communication.

f) Managers devote a great part of their time in communication. They generally devote
approximately 6 hours per day in communicating. They spend great time on face to face
or telephonic communication with their superiors, subordinates, colleagues, customers or
suppliers. Managers also use Written Communication in form of letters, reports or memos
wherever oral communication is not feasible.
29
g) Thus, we can say that “effective communication is a building block of successful
organizations”. In other words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as follows:

a. Communication promotes motivation by informing and clarifying the employees about

the task to be done, the manner they are performing the task, and how to improve their
performance if it is not up to the mark.
b. Communication is a source of information to the organizational members for decision-
making process as it helps identifying and assessing alternative course of actions.
c. Communication also plays a crucial role in altering individual’s attitudes, i.e., a well
informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and written
communication help in moulding employee’s attitudes.
d. Communication also helps in socializing. In todays life the only presence of another
individual fosters communication. It is also said that one cannot survive without
communication.
e. As discussed earlier, communication also assists in controlling process. It helps
controlling organizational member’s behaviour in various ways. There are various levels
of hierarchy and certain principles and guidelines that employees must follow in an
organization.
f. They must comply with organizational policies, perform their job role efficiently and
communicate any work problem and grievance to their superiors. Thus, communication
helps in controlling function of management
g. An effective and efficient communication system requires managerial proficiency in
delivering and receiving messages.
h. A manager must discover various barriers to communication, analyze the reasons for
their occurrence and take preventive steps to avoid those barriers. Thus, the primary
responsibility of a manager is to develop and maintain an effective communication
system in the organization.

30
2. Team work
a. Teamwork is the process of working collaboratively with a group of people in order to
achieve a goal.
b. The external factors of teamwork are the political, economic, social and technological
factors that affect teamwork whiles the internal factors of teamwork constitute leadership
style, diversity (culture, talent and personalities) communication, cohesiveness etc. which
affects teamwork.
c. Teamwork is as old as mankind, and many organizations use the term teamwork in either
one sense or the other, such as in the production, marketing processes, etc.
d. Management team, production team or an entire organization can be referred as a team.
Cook (1998) claimed that there is a growing consensus amo ng scholars in the world that
organizations may be getting works done through individuals, but his super achievement
lies in the attainment of set goals through teams (teamwork).
e. It is a well-known fact that teamwork is not only the foundation of all successful
managements, but the means of improving overall results in organizational productivity.
f. Wage (1997) described Teamwork as an idea of working together in a group to achieve
the same goals and objectives for the good of the service users and organizations in order
to deliver a good quality of service (productivity).
g. Ruth (2007) claimed that employees’ teamwork is seen as constituting a larger group of
people than what job position describes. The essence of teamwork is that workload is
reduced and broken into pieces of work for everyone to take part. Alan (2003) defined
teamwork as a grouping of professionals whose members work intensely on a specific,
common goal using their positive synergy, individual mutual accountability and
complementary skills. Employees take many steps toward accomplishing key action items
and nothing important is finished.
h. Team work is the ability to work together towards a common vision. It is a fuel that
allows common people to attain uncommon results.
3. Self development
Employees have a unique insight into the requirements of their own role and when
they direct their own development, with support from line managers, those needs are
more likely to be addressed.

31
 self development helps to :

a. Improve employees’ skills and performance

b. Create an upwardly mobile workforce, enabling you to promote from within more
often

c. Increase productivity, maximizing the value of employees to organization

d. Help your organization handle change more effectively, as employees are

continuously updating their skills.

Self development isn’t just beneficial for employers, either. It also helps employees to
pursue their own career goals and interests, build confidence and be more autonomous.

Identifying areas for employee self-development

The development activities your employees undertake will depend partly on the
budget and time you provide for self development.Activities can be diverse, covering
any kind of personal development. They can include:

a. Formal learning, such as taking external training courses and educational

qualifications, attending conferences, or e-learning
b. Work-based learning, such as undertaking special projects, shadowing colleague and
taking on new duties
c. Self-directed learning, such as reading academic and industry texts
d. Professional activities such as training or mentoring others, being part of a
professional body and networking with other professionals
4. Development of employees

Employees are the most valuable assets and truly the backbone of an organization.
Every employee in his/her own way contributes towards the success or failure of an
organization. Without employees in an organization, even the most powerful machinery with
the latest technology would not function.

32
Importance of Employee Development

a. Employee development activities help in the growth and development of employees, who
are the true assets of an organization

b. Don’t forget the employees strive really hard for almost the entire day to accomplish the
organization’s goals and objectives. They need to be appreciated. The management ought
to acknowledge their hard work.

c. Employees who give their heart and soul to the organization also expect something in
return

d. Employees need to grow with time. One cannot apply similar skills and techniques
everywhere. Technology also becomes obsolete with time. An individual needs to keep
himself/herself abreast with the latest developments to survive the fierce competition.

e. Employee development is important for employees to enhance their skills and upgrade
their existing knowledge in order to perform better.

f. Employee development activities and trainings make an employee aware of the latest
developments and what is happening around him.

g. Employee development is important not only for professional but also personal growth of
employees. Employee development activities prepare individuals for adverse conditions
and unforeseen situations.

h. Every employee likes to acquire new skills and learnings while at job. A sense of pride
develops when they feel that their organization is investing time and resources to train
them. Employee development is essential for extracting the best out of employees.

i. Employee development creates a learning culture in the organization where every

employee is motivated to learn new skills and acquire new learnings. You really need to
give their careers an extra push. Motivate them to inculcate the habit of reading.
Encourage them to register for various online or distance learning courses which will help
them enhance their skills along with their jobs.

33
j. Employee development helps an employee to do a self analysis of himself/herself. He
knows where he is lacking and what all new skills and learnings will help him/her
improve his performance and deliver better results.

k. Organizations who train their employees from time to time do not face the problem of
employee attrition. Employees hardly leave such organizations where they are being
trained along with their routine jobs.

l. Employee development also goes a long way in strengthening the relationship among
employees. Individuals as a result of various trainings, open house sessions, forums tend
to interact with each other more and thus come closer.

VII. SUMMARY
As far discussed about organization, definition ,objectives, types of organization,
theories of organization, principles of organization and minimum requirement of
organization. All these information focus on the organizational development.
VIII. CONCLUSION

Organization is the backbone of management. Without efficient organization, no

management can perform its functions smoothly. Sound organization contributes greatly
to the continuity and success of the enterprise. A poor organization structure makes good
performance impossible, no matter how good the individuals may be. The right
organizational structure is the necessary foundation, without it the best performance will
be ineffectual and frustrated.
IX. RESEARCH ABSTRACT
Inspiring research and inspiring scholars

Join us at the 2019 POS Research Conference to share and advance empirical and
theoretical research in the field of Positive Organizational Scholarship (POS). This biennial
gathering of scholars promotes research that inspires and enables leaders to build high-
performing organizations that bring out the best in people.
At the conference, the Michigan Ross Center for Positive Organizations will present
the Award for Outstanding Published Article, which recognizes research in Positive
Organizational Scholarship.

34
 Call for Abstracts

Scholars are invited to submit a 1-2 page, single-spaced structured abstract of an empirical
and/or theoretical research project for potential presentation at the 2019 POS Research
Conference. Abstracts should summarize already conducted (as opposed to planned)
scholarly work and should be structured with the following components:
 Purpose and theoretical background
 Design/methodology/approach
 Findings
 Implications for research
 Implications for practice
 Originality/value
 Keywords (up to 5)
 Paper type (Conceptual or Empirical)
Abstracts may be selected for one of the following 12 research track sessions (oral
presentations) or for the visual presentation session (poster session).

Track Name Description Host(s)

Positive Emotions In this session, we will explore how Joyce Bono,

at Work positive emotions contribute to University of
flourishing among individuals, teams, Florida
and organizations. The session will
provide the opportunity to consider Michelle
the use of positive emotions to build Duffy, University
personal, interpersonal, and of Minnesota
organizational resources. Moreover,
we will consider the dynamics and Theresa Glomb,
mechanisms through which positive University of
emotions influence outcomes and Minnesota

35
 spread through teams and
organizations.

Crafting Positive This session will feature research on Brianna Barker

Identities and positive identities and identity work Caza, University
Enacting our Best in the new world of work. We will of Manitoba
Selves in the New explore the challenges and
World of Work opportunities individuals and
organizations face in building and
maintaining positive work identities
in the age of the 24-7 workplace, the
gig economy, hybrid jobs, dual career
couples, globalized careers, and other
emerging forms of work and
organizing. Research in this session
will examine the identity and image
processes that individuals, dyads, and
collectives engage in to create and
sustain multiple positive personal,
role, relational and collective
identities, and the contextual
variables that constrain or enhance
these processes. In addition, we will
explore the mechanisms underlying
the construction and maintenance of
both positive identities and positive
selves. Finally, we will discuss the
impact of positive self-construction
processes on individual, relational
and organizational flourishing.

36
X. BIBLIOGRAPHY
1. B T Basavanthappa .Nursing administration.2nd edition.New Delhi:Jaypee
Publication;2009.142-157.
2. Nisha Clement.Introduction of nursing service and administrartion.1stedition.EMMES
publication;2014.89-104.
3. D C Joshi.Hospital Administration.1stedition.New Delhi:Jaypee publication;2009 .84-
89
4. Harold Koontz.Essentials of management.6th edition.Newdehi:Mc Graw Hill
publication;2006.252-257
5. ChabbraT.N. Principles and Practice of Management.8th edition.New Delhi; Dhanpat
Rai and Co. Pvt. Ltd. Publishers; 2003. 317-319
6. Prasad LM. Organizational Behaviour. 2nd ed. New Delhi: Sultan Chand and Sons;
1994

7. Robbins P Stephen .Fundamental Of Management. 3rd Edition. Pearson Publishers

;2001.153-165.
8. A.G Chandorkar. Hospital administration and planning. 2nd edition. Paras medical
publisher. New Delhi. 2009. pg no. 67-72.

9. https://rapidbi.com/organisational-organizational.

37
Programme : MSc(N) II Year
Name of the student : Mrs.Jessy L
Subject : Nursing Management
Unit : IV
Topic
:Organization(Introduction,Aims,Principles,Types,Theories and
minimum requirements)
Hours Allotted : 2 hours
Name of the HOD : Mrs.Smitha Mohan
Name of the Evaluator : Mrs.Smitha Mohan
Submitted to : Prof V Mary Elizabeth
Submitted on :06/03/2018

38
 INDEX

Serial no Content Page no

I Introduction of organization 1
II Definition of organization 1

III Aims of organization 2-3

V Principles of organization 3-14
VI Types of organization 15-22

VII Theories of organization 22-29

VIII Minimum requirement for an organization 29-34

IX Summary 34

X Conclusion 34

XI Research Abstract 34-36

XII Bibliography 38

39