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How organizations work

Any organizational management has clear roles and responsibilities to lead the business. The primary foundation of any organization is to meet its objective and goal as mentioned in the Vision and Mission statements.

Organization helps to plan and execute the road-map for growth. To achieve this, there has to be a proper organizational structure of Sales, Marketing, Finance, Operations, HR and Admin. Define roles and responsibilities of each and every department and a detailed action plan about who will do what.

Common Purpose of the organization

An organization with a clear purpose or mission is the one that is easy to understand and manage. A common purpose unifies employees and helps them understand the organization's direction. An organization can run only if there is an organizational structure.

Organizational Structure

The organizational structure is the way an organization is organized. It can have a major impact on the way it performs. There are several model of organizational structure that are typically used in the business world and they continue to evolve. The first consideration is whether the power is centralized at the top, with decision making in hands of a few senior employees, or decentralized, with more power in the hands of staff and with fewer people to go through for approval.

Organizational Structure is the pattern of relationships among positions in the organization and among members of the organization.

The purpose of structure is the division of work among members of the organization and the co-ordination of their activities so that they are directed towards achieving the same goals and objectives of the organization. Structure defines tasks and responsibilities, work roles, relationships and channels of communication.

Organizations exist because groups of people working together can achieve more than the sum of the achievements which the individuals in the organization could produce when working separately.

It can also be argued that organizations exist as a result of the impact of transaction costs, because they can arrange transactions between their different parts at a lower total cost than that available in the open market. In crude terms, it may be cheaper to make or do something ‘in house’ because this cuts out the time consuming process of negotiating terms and renegotiating them every time your requirements change. As economic development gained pace, however, it became clear that it was more efficient to organize production internally within a firm rather than undertake each transaction externally through the market.

In order to run organization in better way . Its effectiveness is very important. This means an organization that produces a desired effect or an organization that is productive without waste.

Strategies to Improve Organizational Effectiveness

· Proper utilization of Human resources

· Focus on Training & development of the people working in the organization

· Be customer centric organization

· Work on Quality Services or Products. ...

· Efficient Use of Technology.

In order to make organization successful, the strong and well thought of Business plan is needed which need to be backed by innovative products & services , Efficiency with in the systems, growth mindset , discipline and finally a strong & motivating Leadership.

Dr Praveen Srivastava, Business Coach & Management Consultant

Recipient of Philip Kotler excellence award in the area of Consulting and Training

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