Organizational Behavior: Dr. Prasanjit Dasgupta

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Organizational Behavior

Dr. Prasanjit Dasgupta


What is an Organization?

•Organization can be defined as a collective social unit deliberately created by


a group of people to accomplish specific goals and purposes within a loosely
delineated boundary on a continuing basis with enabling factors for sustained
growth.
• Key elements outlined in this definition are:
• Organization is a collective social unit;
• It has specific goals and purposes;
• It has loosely delineated boundary;
• It operates in continuing basis;
• It has enabling factors.
Types of Organization

•Mutual Benefit Associations;


• Business Organizations;
•Service organizations;
•Commonweal Organizations
Types of Structure

• Simple Structure: The entrepreneurial organizations in formative phase are


typically small in size with no defined rules, procedures and systems. It is
characterized by simple structure where decision making and control are
centralized with owner. There is low degree of departmentalization, wide span
of control and centralized authority.
• Functional Organization: The organization is divided into a number of
functional areas. Each function is performed by a specialist who operates with
considerable independence. This functional specialist has authority over all
employees of the function. It is usually appropriate for single product,
technology and market.
Types of Structure

•Bureaucratic Organization is characterized by a structure with highly routine


operating tasks achieved throughout the organization, very formalized rules
and regulations, tasks are grouped into functional departments, narrow span of
control, and decision making following the chain of command.
• Product/Market Organization brings together all those involved in production
and marketing of a product or a number of products. When a company’s
departmentalization becomes too complex for coordination top management
creates semi autonomous structure.
Types of Structure

•Project Organization model is adopted when an organization has to execute


large projects of long duration. It is effectively applied when:
The project offers a unique or unfamiliar challenge;
The project has definite goals and well defined specifications;
The project is complex with interdependent tasks;
Successful completion of the project is critical to the organization
The assignment to be completed within the given time limit.
• Matrix Organization refers to a structure in which each employee reports to
both functional and divisional manager. It is a structure that creates dual line of
authority and combines functional and product departmentalization.
• Strategic Business Unit (SBU) refers to separate operating division of a
company with considerable degree of autonomy. It is a business unit within
overall corporate identity which serves a defined external market where
management can formulate independent strategies.

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