Organizational Concept

Organizations are viewed as established social systems designed to carry out specific objectives. To accomplish the goals & objectives of the organization efficiently & effectively, human & material resources are essential.
An organization includes people working together for a common purpose while working in different areas.Relationships are emphasized in an organization.

Organizational Structure

The organizational structure provides the framework in whick management process is carried out in an organization. It is designed to show clear lines of authority, flow of communication, & relationships among the various departments, & to pinpoint person/s responsible & accountable.
There are 2 types of organizational structure:
1. Formal type : planned and made public
2. Informal type: unplanned & covert

Informal Structure

The Informal organizational structure consists of personal & social erlationships among the members of the organization.It is not reflected on the organizational chart. It is through the informal structure that people with little or no formal status or position may gain recognition. The informal structure also has its own channel of communication called the grapevine, where information is disseminated faster than in the formal system of communication. However, information transmitted through the grapevine may or may not be accurate.

Formal Structure

The formal structure describes the positions, the responsibilities of those occupying the positions, and the working relationships among the various units or departments.
There are two basic forms of formal organizational structure :
1. The Hierarchic or Bureaucratic model
2. Adaptive or Organic model

Hierarchic or Bureaucratic Model

This model is designed to facilitate large-scale administration by coordinating the work of many personnel. It is associated with subdivisions, specializations, technical qualifications, rules and standards, impersonality & technical efficiency.

Adaptive / Adhocracy or Organic Model

Tomey describes the adaptive or organic model as newer organizational framework that are more free form, open, flexible, and fluid than the older bureaucratic models.

Characteristics of an Organic model are:

1. Motivation is not derived from supervision but rather from the needs of the system, peer pressure & task-related factors;
2. Rewards and recognitions are based on the results of individual & group work rather than on subjective evaluations from supervisors or managers;
3. Management is participative;
4. since relationships are flexible, the organizational chart is likely to be used;
5. It is staffed by independent & self-reliant people; &
6. Job descriptions are less meaningful.

Adhocracy organizational models consist of several types of structures, as follows:

1. Free form
2. Collegial Management
3. Project Management
4. Task Forces
5. Matrix Organization

Free Form

Free form organizational structure stresses open communication, concensus, independent judgement & self-regulation.

Collegial Mangement

Collegial management enhances democratic management. It limits authocratic leadership and ensures that each functional area of the organization is represented. It maintains a division and balance of power among top management through collective responsibility.

Project Management

Project management is useful for long-range projects that need much planning, coordination and research. There are 2 types: (a.) General or Functional Management
(b.) Aggregate Management

General or Functional Management

- the most common type of project management. In this type of management, department heads manage activities of the functional groups. The functional group's activities are being coordinated by the general manager. In this type of management, there is no central authority and decisions are made not for the best interest of the project but to the advantage of the strongest functional group.

Aggregate Management

- the manager in this type of management is appointed, he has his own staff, and has full authority and control over the projects. The people directly involved in the project report directly to him.

Task Forces

Task forces are organized for special projects that are short-range. It is a temporary assignment of a group of people who have been selected because of their special qualifications and expertise. They are relieved of their usual tasks and duties to concentrate on the project which otherwise could not be accomplished while performing their usual work.

Matrix Organization

Matrix organizational design is a structure within a formal bureaucratic design. It allows the creation of groups within the organization itself. Although the groups may belong to various department or units, they have common goals and visions.