Chapter 5: Organization
Questions and Answers
Q1. Define Organization.
Organization is the arrangement of personnel for facilitating the accomplishment of an agreed
purpose through the allocation of functions and responsibilities.
It involves relating the efforts and capacities of individuals and groups engaged upon a common
task in such a way as to secure the desired objectives with least friction and with the
satisfaction of those for whom the task is done.
An organization is also defined as a social entity having:
- A common goal
- Resources
- A structure of authority and responsibility
- Pre-defined boundaries of operation
- Efficiency and effectiveness
Q2. What are the types of Organization?
There are two main types of organization:
1. Formal Organization: A deliberately designed structure with defined roles, responsibilities,
and relationships. It follows official rules and procedures.
2. Informal Organization: Naturally emerging relationships and interactions among members,
not officially designed. Examples include friendships and social groups within an organization.
Q3. What are the main theories of Organization?
The major theories of organization are:
1. Mechanistic or Structural Theory: Focuses on the formal structure of organizations.
Example: Classical and Administrative Management theories.
2. Humanistic and Socio-psychological Theory: Emphasizes the human element and social
relationships.
Example: Elton Mayo's Hawthorne Studies (1927–1932) — found that worker productivity is
influenced by social factors and attention.
3. Bureaucratic Theory (Max Weber): Emphasizes:
- Division of labor
- Hierarchy
- Written rules
- Rationality
- Impersonality
- Neutrality
- Selection on merit
4. Systems Theory: Views the organization as a system with interrelated elements.
- Can be closed or open system
- Includes subsystems that interact with each other and the environment.
Q4. What is the principle of Hierarchy in organization?
Hierarchy refers to the grading of duties not according to different functions, but according to
degrees of authority and corresponding responsibility.
Key points:
- Also known as the 'scalar system', 'chain of command', or 'control of higher over lower'.
- It arranges individuals' positions so that lower levels are supervised by higher levels.
- Authority, command, and control descend from the top down to the bottom, step by step.
Q5. What is Span of Control? What factors determine it?
Span of Control (also called Span of Attention) means 'how many persons can be supervised by
an individual at a time.'
Different scholars suggest different limits:
- Sir Ian Hamilton: 3 to 4 employees
- L. Urwick: 5 to 6 at higher levels; 8 to 12 at lower levels
- Wallace Survey (1937): Japan–13, England–25, USA–60, Canada/Germany/Italy–14, France–
17, Russia–19 to 20
Factors that determine Span of Control:
1. Nature of Work
2. Quality of Leadership
3. Time
4. Place or Location
Q6. What is Unity of Command?
Unity of Command means 'no individual employee should be subject to the orders of more than
one immediate superior.'
Scholars' views:
- Henri Fayol: 'An employee should receive orders from one supervisor only.'
- Prof. Pfiffner and Sherwood: 'Unity of command requires that subordinates formally report
to only one boss. Ultimately all authority and responsibility rest at the top.'
Q7. Explain Integration and Disintegration.
Integration:
- Means unification.
- The process of combining things so they become fully part of a whole.
- It is the process of becoming a full member of a community rather than remaining a separate
group.
Disintegration:
- Means breaking up or causing to break into small parts or groups.
- In the disintegration system, executive authority is distributed by statute or constitution
among members or administrative units.
- Authority at a given level is used to supervise all activities and coordinate them to resolve
conflicts.
Q8. What is Delegation? What are its types?
Delegation means the transferring of authority from a higher level to a lower level to facilitate
the work of an organization.
It involves three elements:
1. Assigning duties
2. Granting of authority
3. Creating obligation/accountability in subordinates
Types of Delegation:
1. Full or Partial
2. Conditional or Unconditional
3. Formal or Informal
4. Upward or Downward
5. Direct or Indirect
Q9. What is Centralization and Decentralization?
Centralization:
- The concentration of authority at the top level of an organization.
- Decisions are made by senior management.
Decentralization:
- The dispersal of authority among a number of individuals or units at lower levels.
- Gives more autonomy to lower-level managers and field offices.
Q10. How is the Federal and Provincial Government of Pakistan organized?
The organization structure of the Federal Government of Pakistan is an outcome of provisions
in the Constitution, as determined by:
1. Provisional Act 1947
2. Constitution of 1956
3. Constitution of 1962
4. Constitution (Interim) of 1972
5. Constitution of 1973
6. Provisional Constitution Order 1981
7. Provisional Constitution Order 1999
Organization of Federal Administration (Rules of Business 1973):
Functions are carried out through:
- Ministries
- Divisions
- Attached Departments
- Subordinate Offices
- Autonomous / Semi-Autonomous Bodies
- Corporations