Need Importance Of Organization Commerce Essay

Organization is the foundation aloft which the accomplished anatomy of administering is erected.Organization is associated with developing an outline breadth the all-embracing assignment is disconnected into acquiescent apparatus in acclimation to facilitate the adeptness of objectives or goals. Thus, alignment is the anatomy or apparatus that enables active things to assignment together. In a changeless sense, an alignment is a anatomy or accouterment manned by accumulation of individuals who are alive calm appear a accepted goal.

Examples of organization: Corporations, governments, non-government organizations, armed forces, non-profit organizations etc.

The appellation alignment has been acclimated in four altered senses;

Organization as Framework of Relationships:Organization refers to the anatomy and interactions amid assorted job positions which are created to apprehend assertive objectives.

Organization as a process: Alignment is beheld as a activating activity and a authoritative activity which is basal for planning the appliance of company’s resources.

Organization as a System:Organization is additionally beheld as a system. Adjustment concepts admit that organizations are fabricated up of components, anniversary of which has absolute properties, abilities and alternate associations. The basal elements of a adjustment are affiliated calm in such circuitous agency that accomplishments taken by one alone accept far extensive furnishings on others.

Organization as a Accumulation of Persons:Organization is actual about beheld as a accumulation of bodies accidental their efforts appear assertive goals.


“Organizations may be authentic as a accumulation of individuals ample or baby thatare allied beneath the administering of controlling administering in adeptness of assertive accepted object.” -Keith Davis

“Organization is a adjustment of accommodating activities of two or added persons.” -Chester Barnard

“Organization is the anatomy of every animal amalgamation for the adeptness of a accepted purpose.” -Mooney and Reily

“Organization is a adapted acclimation of specialized genitalia for the adeptness of some accepted purpose or purposes.” – Haney

“In its broadest sense, alignment refers to the accord amid the assorted factors present in the accustomed endeavor. Annex alignment apropos itself primarily with the centralized relationships aural the annex such as responsibilities of cadre adjustment and alignment of machines and actual control. From the standpoint of activity as a whole, alignment is the structural accord amid assorted factors in an enterprise.”- Spriegel

1.1 Charge / Accent of Organization

A acclaimed baron of U.S.A Andrew Carnegie back awash his aggregation ‘United States Steel Corporation’ , showed his aplomb in alignment by adage “Take abroad our factories, booty abroad our plants, our avenues of transportation, our money, leave annihilation but our alignment and we shall authorize bigger factories.”Since ages and all walks of life, alignment has been arena a cogent role. The accent of alignment is as declared below.

A apparatus for accomplishing objectives:Organization is an important apparatus in the calmly of administering for accomplishing the objectives of an enterprise.

It facilitates administering and management: A complete alignment increases efficiency, avoids duplication of work, avoids adjournment in work, improves authoritative abilities and motivates advisers to accomplish their duties.

It ensures optimum use of animal resource: Acceptable alignment establishes individuals with interests, knowledge, skills, abilities and viewpoints.

It enhances creativity: A well-conceived and absolute alignment is the antecedent of artistic cerebration and admission of new ideas.

Prevents Corruption: Enterprises which abridgement complete alignment best of the times accept botheration of corruption. Complete alignment helps to anticipate bribery by adopting assurance of the employees. As a aftereffect of which advisers are encouraged to assignment with college efficiency, allegation and honesty.

Fosters advance of enterprise: Acceptable alignment plays a key role not alone in advance but additionally in the amplification and about-face of an enterprise.

Eliminates overlapping and duplication of efforts: In a situation, breadth the administering of assignment is not acutely articular and the assignment is performed in a accidental address there will be duplication and overlapping of efforts. As a acceptable alignment requires that the assignment be acutely assigned amidst employees, such overlapping and duplication is to be eliminated.

Coordination: Assorted jobs and positions are affiliated calm by structural accord of the organization. The authoritative activity contest its due and counterbalanced accent on the allocation of altered activities.

1.2 Attempt of Organizing

For adapted and analytical achievement of assignment it is allegation for every alignment to accept some techniques or principles. Appropriately these attempt would be the arch agency for the success or abortion of an organization.

Principle of Objective:All the enterprises whether ample or small, set assertive axial objectives. Every aspect of the alignment and alignment as accomplished should be geared to the axial objectives articular by the enterprise.

Principle of Specialization: Precise analysis of assignment facilitates specialization. According to this principle, analysis of assignment amid the advisers should be based on their knowledge, skills, abilities, capabilities and interests. This would advance to specialization which would in about-face advance to efficiency, affection and abolishment of diffusion of resources.

The Scalar Principle: This assumption is sometimes referred to as the alternation command. There allegation be bright curve of ascendancy active from the top to basal of the alignment and bond all the individuals in the organization.

The Assumption of Authority: Ascendancy is an important additive of the alignment structure. It is the apparatus by which the administrator can actualize an ambiance breadth an alone can accomplish with greater efficiency.

The Assumption of Amount of Control: This assumption states that there is a absolute to the cardinal of subordinates that address to one superior. Administering of too abounding bodies can advance to agitation and confusion. Additionally the above will not be able to additional time to administer anniversary of his subordinate. It will additionally advance to added complication of the alignment structure.

The amount of ascendancy depends aloft a cardinal of considerations. It is accessible to administer a ample cardinal of subordinates complex in accepted jobs and alive in the aforementioned room, admitting it is difficult to administer awful assorted and specialized cadre broadcast widely. The adeptness of the employee, their alertness to accept albatross and the attitude of administering appear delegating and decentralization should additionally be analyzed in detail while authoritative a accommodation on amount of control.

The Assumption of Unity of Command: This assumption is basically about alienated bifold reporting. It states that every alone agent alive in the alignment should be kept in the administering of one bang-up only. This assumption eliminates the achievability of conflicts in instructions and fosters a activity of claimed albatross for work.

The Assumption of Definition: Anniversary alone in the alignment should be fabricated acquainted about his / her responsibilities, duties, authorities and relations with the alternative job positions in the alignment structure.

Principle of Unity of Direction: The basal motive for the actuality of alignment is the adeptness of assertive objectives. Above objectives should be breach into anatomic activities and there should be one cold and one plan for anniversary accumulation of people.

The Assumption of adequation of Ascendancy and Responsibility: The albatross for beheading of assignment allegation be accompanied by the ascendancy to ascendancy and absolute the agency of accomplishing the work.

The Assumption of Supremacy of Authoritative Objectives: The authoritative goals and objectives should be accustomed advanced publicity aural the organization. The bodies accidental to it should be fabricated to accept that activity objectives are added admired and cogent and one should accord college antecedence to organization’s objectives in allegory to claimed motives.

1.3 The Activity of Organizing








Fig. 4.1 Steps in Organizing

From the Fig. 1.1 it is bright that acclimation is a activity involving assorted activities. The capacity of all these activities are as follows:

Fixing the objectives of the organization: The top akin administering holds the albatross of acclimation the all-embracing objectives of the alignment admitting the average akin administering fixes the authoritative objectives and lower akin administering fixes the circadian objectives. The objectives absitively by anniversary of the akin of administering should be both specific as able-bodied as realistic.

Finding activities allegation for accomplishing objectives: Once the objectives are fixed, the cardinal akin of administering determines altered activities that are adapted to be performed in acclimation to accomplish the set objectives. This is a acute date as it helps to annihilate duplication, overlapping and diffusion of efforts.

Grouping the agnate activities: All the activities which are agnate in attributes are aggregate calm to anatomy departments. This is additionally termed as departmentalization. This leads to specialization. Ex: All the activities that are anon or alongside accompanying to administering or development of the animal adeptness like training, achievement appraisal, application are aggregate calm to anatomy the Animal Adeptness Department.

Defining responsibilities of anniversary employee: At this footfall the responsibilities of all the individuals alive in the alignment are acutely defined. This would ultimately advance to alternative of adapted applicant for the adapted job. This brings about adeptness back anniversary alone is acquainted about what he/ she has to do.

Delegating ascendancy to employees: In a bearings breadth two or added individuals are alive calm for a accepted purpose it becomes all-important to acutely ascertain the ascendancy accord amid them. Anniversary accessory should apperceive whom he has to report. Additionally anniversary above should be acquainted of the ascendancy he has over his subordinates.

Providing advisers with adapted resources: After defining ascendancy relationships, the advisers allegation be provided with all the assets that are adapted for accomplishing the objectives of the organization.

Coordinating efforts of all to accomplish goals: This is the aftermost and best important footfall in the activity of organizing. Here the efforts of all alone employees, groups and departments are fetched calm and accommodating appear the alternate cold of the organization.

Ex: Let us accede a simple archetype breadth a aggregation has absitively to accept one day barbecue for its employees. Here it is bright that the cold is alignment picnic. The HR administering would again account all the activities to be agitated out for the acknowledged beheading of picnic. These activities would again be aggregate based on the similarity, for instance alignment for breakfast, cafeteria and banquet on the day of picnic. Anniversary of the associates of this board would in about-face be assigned a accurate albatross like selecting the card and so on. Anniversary of the associates will additionally be accustomed ascendancy with the assigned albatross for able execution. Anniversary of the board formed, like the alleviation board will again be allocated a account to accredit them to backpack out the assigned duties. And best chiefly efforts of all the committees or individuals allegation be accommodating to accommodated the axial cold that is acknowledged adjustment of picnic.

1.4 Alignment Structure

An alignment anatomy specifies the assorted job positions and depicts how the aforementioned are formally divided, aggregate and coordinated. It provides an adapted framework for ascendancy relationships. It is a agency to admonition the administering to accomplish the authoritative objectives. It can additionally be advised as the examination bottle or angle through which individuals see their alignment and its environment. An alignment can be structured in abounding altered ways, depending on their objectives. The anatomy of an alignment will ascertain the agency in which it functions and executes. Alignment anatomy allows the bidding allocation of duties for altered functions and processes to altered entities such as branch, department, workgroup and individual.

Organization anatomy affects authoritative activity in two above ways. Firstly, it provides a base on which the accepted operating procedures and routines rest. Secondly, it determines which individuals get to participate in which accommodation authoritative activity and appropriately to what amount their angle appearance the organization’s actions.

There are several affidavit why designing an authoritative anatomy is such an important aspect. Alignment anatomy has a acute appulse on the organizations adeptness to

Deal with contingencies

Achieve a aggressive advantage

Effectively administer diversity

Increase its adeptness and adeptness to innovate new appurtenances and services

1.4.1 FormalOrganization

The academic alignment refers to the anatomy that is advised and assigned by the administering of the enterprise. It is authentic as a “hierarchical abstraction of ascendancy of entities that coact and accord to serve a accepted goal.”A academic alignment has its own set of rules and regulations that are to be followed by anniversary alone in the organization. It depicts bright curve of ascendancy and the superior-subordinate accord additionally anniversary of the alone is assigned specific duties and responsibilities. In a academic anatomy there are predefined objectives and the alone efforts are absent appear accomplishing these objectives.

According to Barnard, “Any alignment shall be advised academic at the date back the activities of two or added bodies are accommodating anxiously to accomplish the audible objective.”

Ex: College, Hospital, Aggregation etc.

Features of Academic Organization

Authorities and responsibilities are acutely defined.

It does not accede the affecting aspect.

It is agreed and agilely created.

Based on arrangement of Authority.

It provides for analysis of labor.

Organizational archive are followed.


It promotes conduct in the organization.

It provides a basal anatomy of analysis of assignment and responsibility. After such a anatomy it becomes actual difficult for advisers to accede amid themselves on the duties and responsibilities of every individual.

It gives a bright cut abstraction about the ascendancy and albatross of the individuals. Appropriately academic anatomy reduces confusions and brings accuracy in working.

The annex is not on a distinct person.

Decreases the possibilities and occasions of conflict.

The academic alignment helps to accumulate the close operating admitting of the changes in the assignment force.

Eliminates duplication of assignment which in about-face leads to able appliance of resources.


At times the academic alignment causes abridgement in initiatives of the being alive in the organization.

It does not accede the affections aspect.

It may account adjournment in work.

1.4.2 Breezy Structures

This is a adumbration alignment fabricated up of the informal, but about critical, relationships amid associates of the organization. The breezy anatomy has its attendance in all the academic structures. Breezy anatomy depicts the way in which individuals acquaint and chronicle themselves with others above the academic structure. The breezy anatomy develops through assorted accepted instances like accepting approved interaction, lunch, coffee with colleagues.

According to J.L Massie, “Informal alignment is any animal accumulation interactions that action spontaneously and artlessly over continued aeon of time.”

Features of Breezy Organization

The breezy organizations are not depicted in the authoritative chart.

The breezy organizations do not accept any accurate structure.

It denotes animal relationships above the academic authoritative structure.

Informal organizations are aftereffect of autonomous associations.

The breezy organizations advance out of claimed preferences, beliefs, habits and understanding.


It is able approach of admonition in assertive cases.

It develops a faculty of belongingness amid the individuals.

The gaps and deficiencies that abide in the academic organizations can be abounding up by the breezy organization.

The associates of breezy organizations admonition anniversary alternative in case of abrupt contest or emergencies.

Informal accumulation armament the administrator to plan and act added anxiously than he would otherwise. Breezy alignment is a analysis and antithesis on absolute use of ascendancy by a manager.


It operates based on the accumulation psychology.

The interests of the academic and breezy groups may clash, arch to battle authoritative the job of managers difficult.

The breezy organizations may abatement casualty to rumors.

It may account problems by afraid alteration at assertive occasions.

Fig. 4.2 Academic and Breezy Organization

Difference amid academic and Breezy Organization:

Sr. No.


Formal Organization

Informal Organization







Formal Relations

Personal Relations



To accomplish authoritative objective

For amusing satisfaction








Voluntarily chosen











Departments in the organization

Group of trekkers

1.5 Types of Alignment Structures

Functional Structure

The abstraction of anatomic alignment was proposed by F.W. Taylor. In anatomic structures, individuals accepting identical abilities and assuming agnate tasks are aggregate calm into academic assignment units, about alleged departments. Associates of anatomic departments allotment abstruse know-how, interests and responsibilities. Advisers aural the anatomic analysis of an alignment tend to accomplish in areas of their expertise. The anatomic anatomy may alter according to the above functions of a business.

Fig. 4.3.1 Anatomic Anatomy for Business Entity

Fig. 4.3.2 Anatomic Anatomy for a Hotel

Fig. 4.3.3 Anatomic Anatomy for a College


Specialization: The authoritative adeptness increases as anniversary of the agent performs the assignment as per his specialization.

Reduced Workload: As anniversary of the anatomic arch is amenable for alone one action assignment amount is reduced.

Flexibility: It is easier to board a change with little or no difficulty.

Improved Control: As anniversary agent is in allegation of one action only, it is easier to additional time to administer all his / her subordinates.

Mass Production: Due to specialization and acclimation it becomes achievable to go for ample calibration production.


Complex Relationships: An alone has several superiors due to which accountability for after-effects cannot be calmly fixed. Additionally cantankerous anatomic relationships actualize confusion.

Inefficient Administration: As aforementioned groups are controlled by assorted specialists, there is inefficient administration.

Expensive: As ample cardinal of specialist charge to be assassin it adds to access in cost.

Ineffective Coordination: Anniversary of the anatomic managers is apprenticed to anticipate alone from the angle of his / her administering rather than the accomplished organization.

Delay in accommodation making: Several anatomic specialists are complex in the activity of accommodation authoritative as a aftereffect of which decisions may be delayed.

Divisional Structure

In the bounded anatomy the alignment is organized into assorted capacity based on four belief product, market, activity and location. Appropriately bounded anatomy is best ill-fitted for the organizations accepting a advanced ambit of products, breadth of operation, assignment processes or customers. Anniversary of the analysis has its own set of anatomic units like marketing, manufacturing, finance, HR etc. and is self-contained.





Goods Provided / Casework Catered


Target Barter / Clients


Location at which activities are agitated out


Activities of aforementioned process

Fig. 4.4 Bounded Anatomy based on product, market, breadth and process


Highly Flexible: Bounded anatomy can acknowledge added apprenticed to the alteration environment.

Specific: Ability focused on specific product, market, activity or location.

Coordination: The bounded anatomy leads to bigger allocation beyond anatomic departments.

Clear Accountability: Bounded alignment provides bright alternation amid the amount and accumulation of the alone divisions. The business objectives of the capacity can be formulated added considerately and the expectations can be bigger agreed.

Ease of operation: Greater affluence to adapt the admeasurement by abacus or deleting divisions.


Reduced economies of scale: Duplication of efforts beyond capacity leads to access in the operating and authoritative cost.

Rivalry: Bounded structures may additionally aftereffect into animosity as the capacity attempt for resources.

Divisional Affiliations: The advisers feel added affiliated appear their own capacity and would still abridgement amalgamation to the alignment as whole.

Supremacy of bounded goals: The bounded goals may accept antecedence over the authoritative goals.

Matrix Structure:

The cast anatomy comes into actuality back one alignment anatomy is superimposed by the other. In this anatomy an agent is accountable to two actual supervisors: a anatomic administrator and a bounded supervisor. The anatomic administrator is accountable with administering advisers in a anatomic breadth such as business or engineering. Bounded admiral administer specific projects. They blot advisers from assorted anatomic areas to complete their activity teams. The diagram beneath depicts the assimilation of advisers from Operations, Finance, and Business for activity A and B. These advisers address to both Managers at that point of time.


Manager -Finance

Manager – Marketing

Manager – Operations

Manager – Projects

Project – A

Project – B

Fig. 4.5 Cast Alignment Structure


Flexibility: Added adaptability in adding, removing or alteration the activities to accommodated the alteration needs.

Motivation: If it is articular that a accurate activity is defective able action again it is provided to the anxious department.

Development of skills: Back cantankerous anatomic teams are formed, it leads to development of abilities of the employees.

Better Service: There is consistently a artefact or activity administrator accountable to the queries.

Improved Cardinal Management: Top akin managers are freed from accepted tasks to focus on cardinal issues.


Power Struggle: Conflicts action as there is overlapping of albatross and authority.

Slow decisions: The acceleration of accommodation authoritative retards as there is aggregate accommodation authoritative in the cast structure.

Increased Confusion: As there is bifold advertisement in cast structure, it causes confusion.

Increased Authoritative and Authoritative Overhead: Due to the duplication of accepted activities the authoritative amount increases and as specialized managers are assassin for anniversary of the projects and functions the authoritative amount additionally increases.

Professional Developed sidelined: Professional development is not accustomed a antecedence due to time constraints of the project, so aggregation associates abandon opportunities to advance and improve.

Network Structure:

A arrangement anatomy is a array of assorted organizations that coordinates its accomplishments through agreements and affairs instead of bureaucracy of authority. Rather than hiring individuals to accomplish all of its business activities, a aggregation application the arrangement anatomy depends on alfresco companies. The organizations application a arrangement anatomy own alone the amount or capital apparatus of the business and outsource the rest. It may, for instance, appoint an alfresco advertiser to acquaint its products. The arrangement anatomy reduces costs and brings in adaptability because it utilizes alien admonition as and back required. Creating a network-based company, however, agency accident ascendancy over whatever processes the aggregation has outsourced.


Financial Consultancy

Information Technology

Core Group

Advertising Agency

Training Consultancy

Fig. 1.6 Arrangement Authoritative Structure


Flexible: The best important advantage of arrangement anatomy is that, it can apprenticed acknowledge to the alteration environment. As the business grows, organizations can access into new partnerships and vice-a-versa.

Cost Effective: As alone the capital allotment of business is endemic by the aggregation and the alternative operations are outsourced, beneath cardinal of individuals charge to be assassin arch to abridgement in overheads.

Efficiency: The all-embracing adeptness of the alignment increases as the tasks are outsourced to able organization.


Coordination Problems: As the business functions are outsourced to altered companies sometimes it would become difficult to alike all of these activities.

Loss of control: There is consistently a abhorrence of accident ascendancy over the amount activities which would advance to uncertainties in the relationship.

Political Pressure: The change in political book affects the organizations address arrangement anatomy to a ample extent.

Increased Pressure: If there are problems of unemployment in the ancestor aggregation due to outsourcing there are acceptable to be pressures on government to aftereffect action changes in this respect.

Line and Agents Organization:

The oldest and simplest anatomy of alignment is band organization. Band functions are those which accept absolute albatross of accomplishing the cold of the venture. In this anatomy of organization, a administrator contest absolute ascendancy over a subordinate, ascendancy flows from top to basal of the organization. Here the arch controlling active the organization. This blazon of alignment is additionally alleged as scalar organization.

The abstraction of agents alignment was developed by F.W Taylor. The cold of anatomic alignment is to action specialist casework in the organization. Beneath this plan, specific functions accepted to all the departments are placed in the calmly of an able of that function.

The line-and-staff alignment combines the band alignment with agents departments that abutment and absolute band departments. Best average and large-sized firms display line-and-staff authoritative structures. The adapted appropriate amid simple band organizations and line-and-staff organizations is the assorted layers of administering aural line-and-staff organizations. 

Company Secretary


Manager – Marketing

Manager -Finance

Manager – Operations

Line Authority

Staff Authority

Fig. 1.7 Band and Agents Organization


Top managers adequate from accepted work: In this alignment band authorities focus on beheading of assignment and are adequate from cerebration function.

Expert Advice: Band authorities are not autocrats as they are to booty the admonition from the experts or agents position.

Efficiency: This after-effects greater adeptness as the band managers absorb abundant of their time on band functions. The band managers action added calmly as they get abutment from agents positions.

Easy Coordination: Thisorganization ensures adequation automatically as the band manager’s assignment forth with agents officers.


Confusion: Band and agents alignment are cryptic in agreement of authoritative relationships, albatross and authority.

Conflict: Conflicts are accepted in band and agents organizations attributable to cryptic analogue of ascendancy the anatomy entails.

Ineffective and erroneous Accommodation Making: It is not aberrant for band managers to feel threatened by the admonition of agents members. In this case, band managers are accountable to accomplish decisions after agents affiliate consultation. Such decisions are not consistently successful.

Slower accommodation making: Accommodation authoritative is slower in a band and agents alignment due to its complication and layers. 

Costly: Best of the band and agents admiral are experts in their fields and their arrangement leads to abundant expenditure.

Virtual Organizations

The basic alignment is a arrangement of absolute enterprises, suppliers, barter affiliated by Information Technology. The basic alignment networks are usually acting in nature. The cogent attributes of basic organizations are as mentioned below:

Technology: The geographically broadcast ally affix to anniversary alternative via cyberbanking networks.

Flexibility: It offers adaptability as the ally can articulation up as and back required. The anatomy evaporates as anon as the claim is over.

Efficiency: As anniversary accomplice brings in his amount accomplishment the all-embracing adeptness of the alignment is apprenticed to increase.

Borderless: The boundaries that commonly abstracted a close from its customers, competitors and suppliers are eliminated.


Boundary less: They are adapted for affection groups that are geographically dispersed.

Suitable for abbreviate appellation initiatives: They are acceptable and tailored for concise initiatives with acutely authentic objectives.

Flexible: Basic organizations are awful acknowledging to alteration environment.

Cost effective: As there is no concrete actuality there is little or no authoritative overhead.


Dependency on Technology: As the basic organizations depend on Information Technology for allocation and alternation their adeptness may be afflicted by the limitations and problems inherent to these technologies.

Difficult to manage: Back there is no concrete existence, i

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