ORGANIZATION-CONCEPTS,OBJECTIVES AND PRINCIPLES

INTRODUCTION
Organization is the backbone of management. Without efficient organization, no
management can perform its functions smoothly. Sound organization contributes greatly to the
continuity and success of the enterprise. A poor organization structure makes good performance
impossible, no matter how good the individuals may be. The right organizational structure is the
necessary foundation, without it the best performance will be ineffectual and frustrated.

DEFINITION OF ORGANISATION

• An organization may be defined as a formally constituted group of people who have identified
tasks and who work together to achieve a specific purpose defined by the organization.

• Organization is a form of every human association for the attainment of common purpose and the
process of relating specific duties or function in a whole

-J D Mooney
• Organization consists of the relationship of individual to individuals and groups to groups which
are related as to bring about an orderly division of labor.

- Pfiffiner.
• Organization is a formal structure of authority through which work subdivisions are arranged,
defined and coordinated for the defined objective.

- Luther Gullick
• Organization is a system of co-operative activities of two or more persons.

-Chester I Bernard.
• An organization is defined as a designed and structured process in which individuals interact for
objectives

-Hicks and Gullet, 1975.

NATURE OF ORGANIZATION

Four P’s are required to form the bases for organization,

 P- Purposes
 P- Process
 P- Person target group
 P- Place setting
NATURE AND CHARACTERISTICS OF ORGANIZATION
The nature and characteristics of organization can be studied under following headings:
1. Organization as a group of persons
2. Communication
3. Organizing is a basic function of management
4. Organizing is a continuous process
5. Organizing is always related to certain objectives
6. Organization connotes a structure of relationships
7. Organization involves a network of authority and responsibility relationships

(i) Organization as a group of persons

It is an identifiable group of people contributing their efforts towards the attainment of goals.

(ii) Communication
It is the nervous system of organization. The organizational members are able to
communicate with each other and they coordinate their activities.

(iii) Organizing is a basic function of management

It is essential for the achievement of organizational objectives. It is done in relation to all
other functions of management, namely, planning, staffing, directing and controlling and all the
areas of business, namely, purchasing, production, marketing, personnel etc.

(iv) It is a continuous process

It is not a one step function. Managers are continuously engaged in organizing and re-
organizing. It is a process of defining and grouping the activities of the enterprise and establishing
authority relationships among them.

(v) It is always related to certain objectives

The operations are divided and authority and responsibility are determined to achieve the
predetermined objectives.

(vi) Organization connotes a structure of relationships

Both formal and informal relationships are necessary to understand the nature of any
organization.
 (vii) Organization involves a network of authority and responsibility relationships –
Organization must be clearly defined to achieve coordination and to avoid conflicts between
individuals and departments.

CONCEPT OF ORGANIZATION

The word ‘organization’ may convey at list tree meanings:

 Firstly it may refer to the activity of management in arranging people, tasks and resources
in the most orderly and efficient manner.
 Secondly it may also name the arrangement itself. the outcome of the organizing activity.
 Thirdly it may describe any number of business, behavioural and humanist concepts.

Organizational Concept - In Context: When all relevant and affected parties have been identified,
design team members creatively search for and develop a general Organizational Concept for the
organization.

In one sense, an Organizational Concept is the chaordic equivalent of the organization chart, though
it tends to resemble the neurons of the brain or the complex patterns of an ecosystem rather than a
traditional hierarchy. It also includes the key guidelines for interaction among Participants and for
the emergence of new elements in the system.

When the Organizational Concept phase is completed, the design team has several useful products.
They include a description of the organization as a totality, in its systemic context; initial
preferences concerning the legal structure of the organization; a set of diverse visual images of
potential organizational structures, decisions concerning basic organizational elements and their
relationships, and a sketch of the way that governance bodies will initially be composed.

Processes and Approaches

Developing an Organizational Concept typically requires a great deal of creativity, dialogue and
experimentation. It is as much about unlearning our conventional ideas about organization as it is
about creating new ones.

When working with a single organization, sometimes find it useful – and invariably revealing – to
have participants begin work on Organizational Concept by drawing their current organizational
structure. In most cases, different individuals will produce very different pictures of the
organization. Exploring these differences, and probing the relationships depicted, will illuminate
many of the issues that participants seek to resolve in reconceiving the organization.
In an inter-organizational initiative, we typically engage in a similar inquiry. In this case, the focus
is not on the structure of a single organization but on the relationships in an industry, field or
community. Having design team members diagram the dynamics of the system can provide
important information about current challenges, highlight key Participants, and illuminate the
fundamental social function that they are seeking to fulfill through their efforts. It can also help
them begin to imagine innovative systems of interaction more appropriate to emerging realities.

The point of these explorations of organizational structure and system dynamics is not to reinforce
what already exists but to begin seeing through and beyond it to more potent organizational
possibilities. Consider for a moment four ways of looking at things: as they were, as they are, as
they might become, and as they ought to be. The heart of the work on Organizational Concept
revolves around this fourth perspective. It begins when team members start to envision new
principle-based systems and structures that redefine relationships among Participants in flexible yet
coherent ways. They should be encouraged to put aside perceived constraints and obstacles,
including their preconceptions of what the law may or may not allow.

Nature of ownership

Ownership means different things in chaordic organizations. It tends not to include rights normally
associated with conventional stock ownership, such as proportional control of the governance
structure, rights to liquidate commonly held assets, or perpetual royalties based on the share of
externally invested capital (traditional equity).

Ownership is more likely to involve rights of participation, and access to or use of common
properties. It might imply the right to create new products or services. Owners (or owner-members)
may also have the right to create new parts of the organization in accord with the Principles.

In general, developing an Organizational Concept involves continually:

 Refining a new vision of the relationships among Participants

 Identifying and letting go of conventional assumptions about organizations
 “Unbundling” concepts of ownership, participation and value
 Deepening the inquiry into the organization’s essential social function
 Seeking higher level solutions to the creative tensions that will inevitable arise

Exploring different organizational forms of organizational structure – hub structures, cooperatives,

business webs, syndication networks, the open source movement and others – can be useful.
Participants will typically discern features they seek in an Organizational Concept and limitations
they aim to avoid.
As part of unbundling process, some groups find it useful to differentiate reasons that Participants
might join together and then begin to imagine different ways those activities could be undertaken
and related.

Every organization is unique – and an Organizational Concept most fully empowering its
Participants to realize Purpose in accord with Principles will also be unique. At the same time,
certain perspectives will tend to characterize the structure and functioning of chaordic
organizations. The organization will be:

 Inclusive. The organization will be open to all who subscribe to its Purpose and Principles in
conducting the organization’s activities.

 Multi-centric and distributive. There will be no single center of power – they will be
everywhere. The smallest or most peripheral parts of the organization will retain the most
power.

 Self-organizing and self-evolving. The organization will grow through self-organization

rather than through a centralized command-and-control process. Every aspect of the
organization will be subject to change as the whole evolves.

 Participant-owned and participant-governed. Participants will govern themselves and the

parts of the network in which they participate. Any central board or council will be
responsible only for those few decisions that concern the whole of the system.

 Diverse and adaptive. In a chaordic organization, there will be very few constraints on
innovation and experimentation. Rich collaboration can occur and competing strategies can
be pursued simultaneously. Good ideas will be able to spread rapidly, while bad ideas are
likely to be choked off before they do much damage.

 Strongly cohesive, with an unshakable focus on common purpose and core principles. The
overarching Purpose and core Principles of a chaordic organization are the basis for its
enabling structures, which will allow Participants to pursue tremendously diverse Practices
in a context of evolving agreement about issues that are fundamental to the whole.

ORGANISATION - AIMS & OBJECTIVES

Objectives give the business a clearly defined target. Plans can then be made to achieve these
targets. This can motivate the employees. It also enables the business to measure the progress
towards to its stated aims.
The most effective objectives meet the following criteria:
 S – Specific – objectives are aimed at what the business does, e.g. a hotel might have an
objective of filling 60% of its beds a night during October, an objective specific to that
business.
 M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales in the
next half year of trading.
 A - Agreed by all those concerned in trying to achieve the objective.
 R - Realistic – the objective should be challenging, but it should also be able to be achieved
by the resources available.
 T- Time specific – they have a time limit of when the objective should be achieved, e.g. by
the end of the year.

The main objectives that a business might have are:

 Survival – a short term objective, probably for small business just starting out, or when a
new firm enters the market or at a time of crisis.
 Profit maximization – try to make the most profit possible – most like to be the aim of the
owners and shareholders.
 Profit satisfying – try to make enough profit to keep the owners comfortable – probably the
aim of smaller businesses whose owners do not want to work longer hours.
 Sales growth – where the business tries to make as many sales as possible. This may be
because the managers believe that the survival of the business depends on being large. Large
businesses can also benefit from economies of scale.

PRINCIPLES OF ORGANIZATION

1. Principle of unity of objectives: Organizational goals, departmental goals, and individual goals
must be clearly defined. All goals and objectives must have uniformity. When there is contradiction
among different level of goals desired goals can’t be achieved. Therefore, unity of objectives is
necessary. The organizational goal should be formulated for the business as whole and organization
should be framed to achieve that goal. Departmental goals should be developed so that ultimate
common goal should be attained. If the common organizational goal is not decided, departments
may set their own goals and there may be occurrence of conflict about the common objective.

2. Principle of specialization:  Sound and effective organization believes on organization. The term
specialization is related to work and employees. When an employee takes special type of knowledge
and skill in any area, it is known as specialization. Modern business organization needs the
specialization, skill and knowledge by this desired sector of economy and thus, efficiency would be
established.
 Every single individual in the organization should be asked to perform only one type of
function (work). This function should be related to his educational background, training, work-
experience, ability, etc., in other words, there should be a division of work and specialization in the
organisation. This will increase the efficiency, productivity and profitability of the organisation.

3. Principle of coordination: In an organization many equipment, tools are used. Coordination can
be obtained by group effort that emphasize on unity of action. Therefore, coordination facilitates in
several management concepts.in every organization synchronization and harmonization of the
various departmental activities are indispensable to achieve the desired objectives.to ensure
harmonious and smmoth functioning of an enterprise the activities in all areas of the department,t
decision etc.are required to be pulled together.

co-ordination is the integration, synchronization or orderly pattern of individual and group

efforts to achieve the organizational objective.co-ordination affects the people,groups,organizational
units and all activities wiyhin every enterprise.lack of co-ordination causes tremendous waste of
time ,effort and money.

4. Principle of authority: Authority is the kind of right and power through which it guides and
directs the actions of others so that the organizational goals can be achieved. It is also related with
decision making. It is vested in particular position, not to the person because authority is given by
an institution and therefore it is legal. It generally flows from higher level to lowest level of
management. There should be unbroken line of authority.

5. Principle of responsibility: Authentic body of an organization is top level management, top

level management direct the subordinates. Departmental managers and other personnel take the
direction from top level management to perform the task. Authority is necessary to perform the
work .only authority is not provided to the people but obligation is also provided. So the obligation
to perform the duties and task is known as responsibility. Responsibility can’t be delegated. It can’t
be avoided.

6. Principle of delegation: Process of transferring authority and creation of responsibility between

superior and subordinates to accomplish a certain task is called delegation of authority. Authority is
only delegated, not responsibilities in all levels of management. The authority delegated should be
equal to responsibility

7. Principle of efficiency: In enterprise different resources are used. Therese resources must be
used in effective manner. When the organization fulfill the objectives with minimum cost, it is
effective. Organization must always concentrate on efficiency.

8. Principle of unity of command:  subordinates should receive orders from single superior at a
time and all subordinates should be accountable to that superior. More superior leads to confusion,
delay and so on. Dual command is a permanent source of conflict. there for in every organization,
each subordinates should have one superior whose command he has to obey.

Unity of command helps clarify authority and responsibility relationship in the organization.
there will be no possibility of the sub ordinates receiving conflicting orders. the organization
structure will be simple and management will be more effective because there will be no confusion
as to who is responsible to whom.

9. Principle of span of control: unlimited subordinates cant be supervised by manager, this

principle thus helps to determine numerical limit if subordinates to be supervised by a manager.
This improves efficiency.

Span of control means the maximum number of subordinates which one superior can manage
effectively. The span of control should be as small as possible. Generally, at the top level, the span
of control should be 1:6, while at the lower level, it should be 1:20. Span of control depends on
many factors such as nature of job, ability of superior, skill of subordinate, etc. There should be
proper span of control. Span of control is the number of subordinate reporting directly to a manger.
The number of subordinates should be in such manner so that supervision can be done effectively. If
span is not planned appropriately efficiency of workers will be affected.

10. Principle of balance: the functional activities their establishment and other performances
should be balanced properly. Authority, centralization, decentralization must be balance equally.
This is very challenging job but efficient management must keep it.

There should be a proper balance between the different levels, functions and departments of
the organisation. Similarly, there should be a proper balance between centralisation and
decentralisation, authority and responsibility, etc. If there is no balance between these factors then
the organisation will not function smoothly.

11. Principle of communication:  Communication is the process of transformation of information

from one person to another of different levels. It involves the systematic and continuous process of
telling, listening and understanding opinions ideas, feelings, information, views etc, in flow of
information. Effective communication is important. A good communication network is essential to
achieve the objectives of an organization

12. Principle of personal ability: for sound organization, human resources is important. Employees
must be capable. Able employees can perform higher. Mainly training and development programs
must be encouraged to develop the skill in the employees

13. Principle of flexibility:  organizational structure must be flexible considering the environmental

dynamism. Sometimes, dramatically change may occur in the organization and in that condition,
organization should be ready to accept the change. The organization structure should be flexible so
that it can be easily any economically adapted to the changes in the nature of business as well as
technical innovations. Flexibility of organization structure ensures the ability to change with the
environment before something serious may occur.

14. Principle of simplicity: this principles emphasizes the simplicity of organizational structure, the
structure if organization should be simple with minimum number of levels do that its member an
understand duties and authorities.

15. Principle of Division of work: the organization should be framed in a manner such that every
individual should get work according to his ability, skills and knowledge. The employees should do
that work continuously to achieve specialization that particular work. This will increase his
efficiency. fayol observed that specialization belongs to rhe natural order. It helps to avoid waste of
time and efforts caused by changing from one to another. but when carried too far ,it leads to loss of
skill and craftsmanship of the employee, and makes the job monotonous and less interesting. since
division of work makes job satisfying.

16. Principle of Scalar chain: There should be proper chain of supervisor from top level to lower
level in vertical direction. This also shows the direction of communication in the organization. This
suggests that communication should pass through each position placed in the chain.
 BIBLIOGRAPHY:

1. Anoop N., Chetan kumar ; A Textbook of Nursing Management ; padmshree institute of

nursing; pp. 148-155

2. Basavanthappa B T : Nursing Administration ;Jaypee Brothers, medical publication (p) Ltd

, New Delhi : pp.146-158

3. Indira Gandhi National Open University: Nursing Administration And Management, Block-
1, school of health science, New Delhi, 2006. Pp: 49 to 53.

4. Indira Gandhi National Open University: Nursing Administration, Block- 3, school of health
science, New Delhi, 2006. Pp.52 to 57.

5. Indira Gandhi National Open University: Nursing Administration And Management ; BNS-
110, school of health science, New Delhi, 2006. Pp: 43 to 57.

5. Tomey A M: Guide toNursing Management ; , 4th edition. Mosby, Elsevier & co; St.
Levis 1992,pp. 112-126

Website:

http://www.tutor2u.net/business/gcse/organisation_aims_objectives.htm
 GUJARAT INSTITUTE OF NURSING
EDUCATION & RESEARCH
AHMEDABAD

SUBJECT : - NURSING MANAGEMENT

TOPIC :- PRESENTATION ON “ORGANIZATION–
CONCEPT,PRINCIPLES,OBJECTIVES”

SUBMITTED TO :-
MR. RAJENDRA MECWAN
LECTURER ,SR. SCALE (CL-I)
GINERA
SUBMITTED BY:-
NIKITA D.PATEL
S.Y.M.Sc NURSING
ROLL NO-12
GINERA