Introduction to Organizational Structures

Introduction to Organizational Structures

Organizations are systems of some interacting components. Levitt (1965) sets out a basic framework for understanding organizations. This framework emphasizes four major internal components such as: task, people, technology, and structure. The task of the organization is its mission, purpose or goal for existence. The people are the human resources of the organization.

Organizations are systems of some interacting components. Levitt (1965) sets out a basic framework for understanding organizations. This framework emphasizes four major internal components such as: task, people, technology, and structure. The task of the organization is its mission, purpose or goal for existence. The people are the human resources of the organization.

What is an Organization?

The term organization is derived from the Greek word organon i.e., tool or instrument. It is often been understood as the embodiment of persistent efforts to coordinate, influence and control human behavior in order to reach some desired result. Organizations as Systems Organizations are systems of some interacting components. Levitt (1965) sets out a basic framework for understanding organizations. This framework emphasizes four major internal components such as: task, people, technology, and structure. The task of the organization is its mission, purpose or goal for existence. The people are the human resources of the organization. The technology is the wide range of tools, knowledge and/or techniques used to transform the inputs into outputs. The structure is how work is designed at the micro level, as well as how departments, divisions and the overall organization are designed at the macro level.

In addition to these major internal components of the organization as a system, there is organizations' task environment, such as suppliers, customers, and regulators. In simpler terms it is that part of external environment which is relevant at present or expected in foreseeable future to the organizations' goal attainment (Thompson, 1967).

Features of Organization

Max Weber has defined the following features and dimensions as basic for all organizations:

    1. The organization has transparent and definite boundaries and has a collective identity of its own.
    2. The organization has a central coordination system to manage the concentrated efforts of the organization
    3. The organization is differentiated internally and decisions are implemented by a disciplined, specialized, continuously and rationally operating staff.
    4. The organization is legitimate and organizational order, including the distribution of authority, power and responsibilities, is legitimate. 
    5. The organization's characteristics establish what is achieved and there is a high degree of steadiness between organizational goals, structures, processes, behavior and outcomes. 
    6. The organization is flexible and are deliberately structured and restructured in order to improve their problem solving capacity and their ability to realize predetermined goals.

 

 

 

 

Related Links

Creation Date Wednesday, 28 December 2022 Hits 1230

You May Also Like

  • The Subsidiary Ledgers

    The Subsidiary Ledgers

    For any company that has a large number of transactions, putting all the details in the general ledger is not feasible. Hence it needs to be supported by one or more subsidiary ledgers that provide details for accounts in the general ledger. Understand the concept of the subsidiary ledgers and control accounts. 

  • GL - GAAP Accounting

    GL - GAAP Accounting

    Generally Accepted Accounting Principles define the accounting procedures, and understanding them is essential to producing accurate and meaningful records. In this article we emphasize on accounting principles and concepts so that the learner can understand the “why” of accounting which will help you gain an understanding of the full significance of accounting. 

  • Company Form

    Company Form

    A Company (also called corporation) may be understood as an association of persons in which money is contributed by them, to carry on some business or undertaking. Persons who contribute the money are called the shareholders or the members of the company. A corporation is an artificial being, invisible, intangible and existing only in contemplation of law. Being the mere creature of law, it possesses only those properties which the charter of its creation confers upon it.

  • GL - Intercompany Accounting

    GL - Intercompany Accounting

    After reading this article the learner should be able to understand the meaning of intercompany and different types of intercompany transactions that can occur. Understand why intercompany transactions are addressed when preparing consolidated financial statements, differentiate between upstream and downstream intercompany transactions, and understand the concept of intercompany reconciliations.

  • Concept of Foreign Branches

    Concept of Foreign Branches

    As the business grows, the company may want to transition to a branch structure as branches are allowed to conduct a much broader range of activity than representative offices. Branches can buy and sell goods, sign contracts, build things, render services, and generally everything that a regular business can do.  A company expands its business by opening up its branch offices in various parts of the country as well as in other countries.

  • The Accounting Equation

    The Accounting Equation

    In this article we will help you understand the double-entry accounting system and state the accounting equation and define each element of the equation. Then we will describe and illustrate how business transactions can be recorded in terms of the resulting change in the elements of the accounting equation.

  • Record to Report Process

    Record to Report Process

    Record to report (R2R) is a finance and accounting management process that involves collecting, processing, analyzing, validating, organizing, and finally reporting accurate financial data. R2R process provides strategic, financial, and operational feedback on the performance of the organization to inform management and external stakeholders. R2R process also covers the steps involved in preparing and reporting on the overall accounts. 

  • GL - Enter & Analyze Journals

    GL - Enter & Analyze Journals

    In every journal entry that is recorded, the debits and credits must be equal to ensure that the accounting equation is matched. In this article, we will focus on how to analyze and recorded transactional accounting information by applying the rule of credit and debit. We will also focus on some efficient methods of recording and analyzing transactions.

  • Global Business Services (GBS) Model

    Global Business Services (GBS) Model

    Global business services (GBS) is an integrated, scalable, and mature version of the shared services model. Global Business Services Model is a result of shared services maturing and evolving on a global scale. It is represented by the growth and maturity of the Shared services to better service the global corporations they support.

  • Operational Structures in Business

    Operational Structures in Business

    Large organizations grow through subsidiaries, joint ventures, multiple divisions and departments along with mergers and acquisitions. Leaders of these organizations typically want to analyze the business based on operational structures such as industries, functions, consumers, or product lines.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved