STRUCTURE AND THEORY OF organization
Basic Model of Organization Structure
The word organization means two things. The first meaning of
the word organization is an institution or a functional group. A business organization, a hospital, a
school, a university are some such institutions. There is another meaning of
`organization', that is an arrangement of people in an institution keeping in
view the concept of division of labor, authority, responsibility and decision
making so that the institution, as a stable system, works coherently towards the
achievement of goals.
The organization structure is built by arrangement of
organizational subsystems. The organization structure is built on four basic
principles, viz. Hierarchy of
authority, specialization, standardization or formalization and, centralization. The structure is built to achieve goals
and objectives fitting into the environment. The structure built on any
principle shows division of work, managerial and non-managerial manpower
allocation as well as flow of decision responsibility and exchange of
information.
