Business communication- II

Chapter:04

ORGANIZATION

• An organization is a group of individuals who come together to

achieve common goals and objectives, often bounded by legal
entities.
• Organizations can be referred to as companies, institutions,
associations, government bodies, etc.
• They must follow specific legal procedures, including:
- Business registration
- Tax identification
- Maintaining corporate records
• The individuals who start the organization are known as the
founders.
• Founders are responsible for completing the necessary legal
procedures or hiring someone to do so.
• Once established, an organization requires a leader or head to
make important decisions.
• The leader's role includes guiding the group and ensuring that
everyone is working towards the organization's goals.

Examples:

1. World Health Organization (WHO): A specialized agency of

the United Nations that focuses on global public health issues. It
coordinates international efforts to combat diseases and enhance
healthcare.

2. Google: A multinational technology company providing internet-

related services, such as search engines, online advertising, cloud
computing, and software.
 3. Tesla: An electric vehicle and clean energy company that
designs and manufactures electric cars, solar energy products,
and energy storage solutions.

4. Microsoft: A technology company that develops and sells

software, hardware, and services, known for products like the
Windows operating system and Microsoft Office suite.

5. Apple Inc.: A multinational technology company recognized for

its innovative products, including the iPhone, iPad, and Mac
computers.

IMPORTANCE OF AN ORGANIZATION
• Organizations help businesses improve their operations and
efficiency.
• Having a hierarchy benefits teams and companies by:
- Simplifying administrative tasks
- Allowing employees to specialize
• Understanding the importance of organizational structure can
enhance productivity and profit margins.

The following are six fundamental points emphasizing the

importance of organization:

1. Optimizes the use of resources: Organizations facilitate the

optimum use of human and financial resources. It helps assign
jobs to the right employees and prevents duplication of work. This
ensures that resources and efforts are not wasted.

2. Helps make administration easier: A good organizational

structure helps with daily operations and long-term strategies. It
helps employees understand how the company works. It clarifies
job roles, avoids duplication and waste, and makes administration
easier.

3. Improves business stability: An organization promotes

stability by establishing clear processes and structures. It reduces
confusion, ensuring smoother operations and adaptability. It
enhances team collaborations, open communication, and effective
leadership strategies to make businesses more stable.

4. Promotes specialization of individuals: An organization

contains a diverse range of employees. Its structure allows for
focused roles and expertise. It empowers employees to develop
specialized skills and maximize productivity.

5. Fosters growth and development: An organized structure

facilitates scalability and resource management. It supports
strategic planning and continuous growth. Continuous growth
makes way for organizational change, which is fundamental in
expansion and development.

6. Supports a sense of culture: An organization develops a

sense of culture tied to its people. It is a collection of shared values
and beliefs that holds the organization together. This
organizational culture forms the backdrop of communication and
collaboration across teams focusing on the ultimate goals and
objectives.

CHARACTERISTICS/ FEATURES OF AN ORGANIZATION

An organization refers to the structure and arrangement of

resources, processes, and individuals within a company or group.
Embodying these characteristics can help streamline operations,
enhance productivity, and ultimately achieve their goals efficiently
and effectively.

1. Clear Structure: A well-organized entity has a clearly defined

structure that outlines roles, responsibilities, and reporting lines. It
establishes a hierarchy and establishes the flow of information and
decision-making.

2. Division of Labor: Organization involves dividing tasks and

responsibilities among individuals or teams based on their skills
and expertise. This division of labor ensures that each person
focuses on their specific area of competence, leading to increased
efficiency and productivity.

3. Coordination and Communication: Effective organization

requires seamless coordination and communication between
different departments, teams, and individuals. It ensures that
everyone is on the same page, working towards shared goals, and
exchanging relevant information in a timely manner.

4. Specialization: The organization allows individuals to specialize

in their respective areas, leveraging their expertise to deliver high-
quality results. This enhances efficiency and encourages
professional growth, enabling companies to tap into the full
potential of their workforce.

5. Standardization: Organized entities often establish

standardized procedures and policies. This ensures consistency
and uniformity in operations, leading to improved quality control,
reduced errors, and better customer experiences.

6. Flexibility and Adaptability: While the organization provides

structure, it also allows for flexibility and adaptability to changing
circumstances. A well-organized entity can adjust its strategies,
processes, and resources to respond to market dynamics and
evolving business needs.

PROCESS OF ORGANIZATION

The process of organization involves arranging resources, tasks,

and people to achieve goals. It is essential for effective
management, productivity, and smooth operations.

Step 1- Identifying goals and objectives

The first step in the process of the organization includes setting
goals that define the purpose and nature of work that the
organization wants to achieve. These goals are divided into further
 team objectives so that individuals are encouraged and motivated
toward unified aspirations.

Step 2- Determining functions and division of work

This step focuses on the activities that would be performed by the
organization to achieve the common goal and how work is to be
divided. To avoid wastage of resources and duplication of duties,
proper division of work among individuals is done.

Step 3- Categorizing groups and departments

Individuals possess different talents and competencies and are
accordingly categorized into common groups thus forming
departments of an organization. Each department is responsible
for specific activities. Examples are sales, marketing, HR, finance,
etc.

Step 4- Setting hierarchies

A hierarchical structure of an organization ensures effective cross-
department communication and collaboration. All employees must
be aware of their point of contact and to whom they report to. This
creates a sense of accountability and responsibility.

How to Manage an Organization?

• Management of an organization ensures better coordination of

tasks across diverse departments.
• Facilitates growth at a faster rate.
• Leads to a collaborative and more positive work environment.
• Fosters job satisfaction and a healthy work culture.
• Companies primarily use HRMS (Human Resources Management
Systems) to automate basic HR functions in the employee life-
cycle.
• Provides benefits for employees, allowing direct access to leave,
attendance, payroll, personal records, compensation, etc.

Recruitment and onboarding:

- From job posting to onboarding employees, all tasks can be
scheduled and automated in an HRMS.
- Each phase can be monitored and controlled by the HR/manager
for efficient processing of candidates.
- This ensures a clear and structured hiring process.

Leave and attendance management:

- A human resources management system tracks the leaves and
attendance of employees safely.
- It allows the organization to access this information anytime.
- Attendance management is crucial for calculating payroll, and
automating it reduces a significant burden.

Project and task timelines:

- Tracking employees' tasks and projects is an important aspect of
organizational management.
- An HRMS eases project management and enables managers to
oversee tasks more efficiently.

Performance management:
- The entire performance management process can be automated
and optimized using an HRMS.
- Employees' competencies and goals can be measured, allowing
for simpler employee evaluation and performance reviews.

Payroll and compensation management:

- The user of the HRMS can provide guidelines for managing
payroll, including bonuses, incentives, and rewards.
- This makes the payroll process more reliable and consistent.
- Compensation for employees can also be directly linked to their
performance, resulting in a more transparent system.

What is the Structure of an Organization?

The structure of an organization refers to how it is organized and

the relationships between different roles and departments.
Common organizational structures include:
• Functional structure: Employees are grouped according to their
common skills or functions, such as marketing, finance, or
operations.

• Divisional structure: Employees are organized based on specific

products, services, or geographic locations.

• Matrix structure: This is a combination of functional and divisional

structures, where employees have dual reporting lines.

• Flat structure: This type has few hierarchical levels and a broader
span of control, which promotes a more decentralized decision-
making process.

How does organization operate?

Organizations operate by aligning resources, people, and

processes to achieve specific goals and objectives. They set up
procedures, hierarchies, and systems to enhance communication,
decision-making, and coordination among employees.

What is the role of administration in an organization?

The role of administration in an organization is to manage and

oversee its operations. This involves tasks such as planning,
organizing, coordinating, and controlling resources to ensure the
smooth functioning of the organization.

How do organizations raise funds to support their activities?

• By generating revenue through sales.

• Through investments from venture capitalists, angel investors, or
crowdfunding.
• By obtaining grants or sponsorships from government agencies,
foundations, or corporate donors.
• By securing loans from financial institutions.
• Through fundraising events or campaigns to collect donations from
individuals or organizations.