8/8/2019 OB-Lecture 1

1/1

Lecture One

1. What is an organization and why do organizations exist?

Organizations in one form or another have always been an integral feature of human

civilization. Farnham and Horton define organizations as: social constructs created

by groups in society to achieve specific purposes by means of planned andcoordinated activities. These activities involve using human resources to act in

association with other inanimate resources in order to achieve the aims of the

organization.Organizations exist in order to achieve objectives and to provide satisfaction for their

members. Organizations enable objectives to be achieved that could not be achieved

by the efforts of individuals on their own. It must be remembered that organizations

are structures of people. Through cooperative action, members of an organization canprovide a synergistic effect. Organizations are an integral part of society involving

both public and private sectors. There are then many different organizations which

are set up to serve a number of different purposes and to meet a variety of needs. The

structure, management and functioning of these organizations will all vary because ofdifferences in the nature and type of the organization, their respective goals and

objectives, and the behavior of people who work in them. For example; firm ofaccountants, school, retail shop, local authority, air-port, motor-car manufacturer,

hospital, hotel, leisure centre, quarry works, government department, pharmaceutical

company, and nationalized industry.

2. What are the common factors in any organization?

Not only are there many different types of organizations, there is some suggestion

that cultural differences in countries can reflect different conceptions of what actuallyis an organization. However, despite the differences, there are at least three common

factors in any organization:i. People,ii. Objectives, and

iii. Structure

It is the interaction of people in order to achieve objectives which form the basis of anorganization. Some form of structure is needed by which peoples interactions and

efforts are channeled and coordinated. To which we can add a fourth factor:

iv. management

Some process of management is required by which the activities of the organization,and the efforts of its members, are directed and controlled towards the pursuit of

objectives. The actual effectiveness of the organization will be dependent upon the

quality of its people, its objectives and structure, and the resources available to it.There are two broad categories of resources:

i. Non-human physical assets, materials and facilities; and

ii. Human members abilities and influence, and their managementThe inter-relationship of people, objectives and structure together with the efficient

use of available non-human and human resources, will determine the success or

failure of the organization and the extent of its effectiveness.