Organization is a systematic arrangement of people

An organization is a systematic arrangement of people brought together to accomplish some specific purpose. Your college or university is an organization. So are the Tirupati Temple Trust, the Dempo Sports Club, the Spencers’ chain of supermarkets, ITC Ltd., the Hindu Group of Publications, and the HDFC Bank. As an organization, each has three common characteristics.

Developing a systematic structure that defines and limits the behavior of its members. Developing structure may include, for example, creating rules and regulations, giving some members supervisory control over other members, forming work teams, or writing job descriptions so that organizational members know what they are supposed to do. The term organization, therefore, refers to an entity that has a distinct purpose, has people or members, and has a systematic structure.

Not all organizational members have management responsibilities. Some are operative employees responsible for working directly on a job or providing direct service to customers. Even though this Best Buy salesman has specific job responsibilities, he is an operative employee and does not oversee the work of other employees.

What is Management and what do Managers do?

Just as organization have common characteristics, so too do managers. Despite the fact that their titles vary widely, they share several common elements in their jobs regardless of whether the manager is a head nurse in the cardiac surgery unit of Lilavati Hospital, Mumbai, who oversees a staff of critical care specialists, or the CEO of the 53,000 plus member Tata Consultancy Services. In this article we will look at these commonalities as we define management, present the classical management functions, review recent on managerial roles, and consider the universal applicability of managerial concepts.

Top Managers>>

Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members

Management>

The process of getting things done, effectively and efficiently through and with other people

Efficiency:

Means doing the task correctly refers to the relationship between inputs and outputs, seek to minimize resource costs.

Effectiveness:

Means doing the right tasks, goal attainment

The term management refers to the process of getting things done, effectively and efficiently, through and with other people. Several components in this definition warrant discussion: the terms process, effectively, and efficiently.

The term process in the definition of management represents the primary activities managers perform.

Effectiveness and efficiency deal with what we are doing and how we are doing it. Efficiency means doing the task correctly and refers to the relationship between inputs and outputs. For instance, if you get more output for a given input, you have increased efficiency. You also increase efficiency when you get the same output with fewer resources. Because managers deal with input resources that are scarce – money, people, equipment and they are concerned with the efficient use of those resources. Management, therefore, seeks to minimize resource costs.

Although minimizing resource costs is important, it is enough simply to be efficient. Management is also concerned with completing activities. In, management terms, we call this ability effectiveness. Effectiveness means doing the right task, which in an organization translates into goal attainment.

Although minimizing resource costs is important, it is not enough simply to be efficient. Management is also completing activities. In management terms, we call this ability effectiveness. Effectiveness means doing the right task, which in an organization translates into goal attainment.

Although efficiency and effectiveness are different terms, they are interrelated; for instance, it’s easier to be effective if one ignores efficiency, Brother, for example, could produce more sophisticated and longer lasting toner cartridges for its laser printers if it disregarded labor and material input costs. Similarly, some government agencies have been regularly attacked on the grounds that they are reasonably effective but extremely inefficient. That is, they accomplish their goals but do so at a high cost. Our conclusion: Good management is concerned with both attaining goals (effectiveness) and doing so as efficiently as possible.

Can organizations be efficient and yet not be effective? Yes, by doing the wrong things well. A number of colleges have become highly efficient processing students. Through the use of computer assisted learning, distance learning programs, or a heavy reliance on part time faculty, administrators may have significantly cut the cost of educating each student. Yet some of these colleges have been criticized by students, alumni, and accrediting agencies for failing to students properly. Of course, high efficiency is associated more typically with high effectiveness. And poor management is most often due to both inefficiency and ineffectiveness or to effectiveness achieved through inefficiency.

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