OFFICE MANAGEMENT
Office Organization and Administration
2.1 Organization Definition
Meaning: Organization is one of fundamental functions of management. After having thought out the
objective or goal of an enterprise and course of action to be followed, it is necessary to give a practical shape
to the work to be performed to meet that objective. in organization, we divide the work, and prepare a structural
plan.
Definitions
“Organization is a group of people who are co-operating under the direction of leadership for the
accomplishment of common end”-Ralph C.Davis.
“Organization is the arrangement of function deemed necessary for the attainment of the objective and is an
indication of the authority and the responsibility assigned to individual charged with the execution of their
respective functions”
2.2 Characteristics of an Organization
On Careful analysis of the above definitions the following characteristics of an organization emerge
(i) It is a group of individual which may be small or large.
(ii) The group in the organization works under the direction of executive leadership.
(iii) It is a function of arrangement.
(iv) It consists of some direction authority which controls the collective efforts of the group.
(v) It refers to a structure of duties and responsibilities.
(vi) It is established for accomplishments of common objective.
(vii) It is continuous function and is preferred in varying degrees by all levels of management, from the first
line supervisor to the top executive of the enterprise.
(viii) It cannot be static for simple reason that an organization which is effective today may not be satisfactory
tomorrow. it needs periodic changes and modifications according to current needs and situations in terms
of objective, jobs and personnel.
2.3 Importance of Organization
The need for organization arises when two or more people work together. A one-man business will have no
difficulty about co-coordinating the efforts of the buying, selling and other management functions of business.
“but when the business starts to grow, and separate departments are created for buying. Sales, accounting
administration, and so on, the need for organization grow with it”.
With the growing complexities of a large scale organization, the need and importance of organization has
grown substantially. The importance of organization can also be judged from the fact that a good organization
is now regarded as the foundation of sound management.
2.4 Steps in Organization Management
Organizing refers to the grouping of activities necessary for the attainment of objective. It also indicates the
authority and the responsibility assigned to individual charged with the execution of their respective functions.
Principles of Office management 1
OFFICE MANAGEMENT
The following steps are involved in organizing the structure of an enterprise.
(a) Knowledge of objectives: While organization, it is important bear in mind the objective or target of
department. The objective must be determined, keeping in view the environmental situation. They must be
clear, complete, and free from confusion. Unless the manager or supervisor knows the objective, he may not
be able to organize properly and motivate people towards the attainment of the objective.
(b) Division of work into activities: After laying down objectives, the manager must identify the total work
involved in achieving them. For instance, the total work involved of a manufacturing enterprise may be divided
into production, finance, personnel, marketing and such other activities.
(c) Grouping the activities: The next step is to group the various activities into practical units based on
similarities and importance, and to indicate the person who would do the work. For instance, purchasing,
assembling may be placed under manufacturing while recruiting, training job grading, compensation may be
placed under personnel.
(d) Defining and assigning activities to jobs: Jobs must be clearly defined and the activities related to them
must clearly identified and assigned. This will help the management to fix the authority and responsibility of
the employees concerned.
2.5 Administration
There is a sharp difference among experts about the meaning of the term “administration “, “management” ,
and “ organization”.
Some writers maintain that there is no difference between these terms, while others are of the view that they
are not synonymous and have different meanings.
Management versus administration
The term administration is that function of an enterprise which relates to the overall determination of policies
and major objectives.
(i) “Administration is the function of “determining the policies upon which the enterprise is to be
conducted, while the function of management is to carry out the policies given by the
administration group.” -Leffingweel and Robinson
(ii) “Administration is largely determinative, whereas management is essentially executed.”-Oliver
sheldon.
(iii) “Administration includes broad policy-making and management is a part or element of
administration” -Prof. Walter.
Formal and Informal organization: -
Formal organization: a formal organization is one in which position, responsibility, authority and
accountability at each level is clearly defined. a formal organization is bound by the rules, systems, producers
and methods as given by the top management from time to time.
According to George R.Terry , there are four basic components of a formal organization.
(i) The work- which is divisionalised.
(ii) Persons-who are assigned to perform the divisionalised jobs.
(iii) The environment-under which the work is done. and
Principles of Office management 2
OFFICE MANAGEMENT
(iv) The relationships-among persons or work units.
A formal organization is systematically planned and is based on the principle of the delegation of authority
and the principle of responsibilities .it makes use of organization charts and attempts to maintain a balance
among the various types of work to be done each being given the importance that its true value deserves.
The advantages of formal organization include
(i) Avoidance of role conflict.
(ii) avoidance of overlapping of authority and responsibility
(iii) advantage of specialization;
(iv) Defining and standardizing systems, rules, policies and procedures of an enterprise, etc.
The limitations are
(i) It does not recognize informal relationships;
(ii) It creates problem of communication;
(iii) It emphasizes structure rather than people.
Informal organization
An informal organization always exists together with a formal organization in every enterprise. In an
organization, people evolve informal groups among themselves which are bound together by common social,
technological work or other interests. Such groups make up an informal organization.
According to Davis “an informal organization is that network of personal and social relations which is not
established by formal organization.” It is an accepted fact that wherever people work together, social
relationships and groupings are bound to arise on account of their frequent contact with one another
which give rise to informal organizations.
The advantages of an informal organization are
(i) It provides a useful channel of communication;
(ii) It covers deficiencies of formal organizations;
(iii) It influences the formal organizations to work carefully;
(iv) It brings about mutuality among group members who derive job satisfaction by an exchange of ideas and
views, etc.
Its limitations are
(i) It may tend to act on basis of mob psychology.
(ii) It may be a source of rumours or wastage of time;
(iii) It may tend to oppose change.
2.7 Types of Organization
The process of organization involves the grouping of activities and the establishment of authority relationships
among these activities. But even this is not enough. The various activities have to be necessarily co-ordinate
for the accomplishment of organizational objectives.
Principles of Office management 3
OFFICE MANAGEMENT
There are four different types of organizations, such as,
(i) Line organization.
(ii) Functional organization.
(iii) Line and staff organization; and
(iv) Committee organization.
2.8 Functions of Administrative Office Manager
An Administrative Office Manager has to perform the following functions and duties:
(i) Layout: It includes planning the layout, maintenance and safeguarding of the building and providing a
proper work environment in the office.
(ii) Equipment: It includes selections, purchase, standardization, maintenance and replacement of furniture,
equipment and office machines.
(iii) Organization: It includes the preparation of organization charts and manuals, laying down of the
functions of department and supervising departmental operations.
(iv) Communication and Correspondence: It includes the hand-ling of inward and outward mail, the
organization and supervision of office correspondence and messenger service, telephone and intercom
system, data communication system, etc.
(v) Records Management: It includes the organization and supervision of filing and indexing, sorting,
classification, protection and destruction of records, etc.
(vi) Reproduction: It includes duplicating, copying, printing and other reproduction services.
(vii) Budgeting and cost analysis: It includes the preparation of departmental and master budgets, allocation
of revenues and expenses and control of office costs, etc.
(viii) Reporting: It includes the preparation of reports and minutes, and the collection and presentation of
data to the top management.
Principles of Office management 4
OFFICE MANAGEMENT
Short Answer Type Questions
1. Define Organization?
2. What is functional organization?
3.. What is formal organization?
4. Explain the principles of span of controller?
5. What is record management?
6. Mention the types of Organization.
7. What is meant by Administration?
8. What is informal organization?
Long Answer Type Questions
1. Give the definition of organization?
2. Explain the characteristics of an organization?
3. Write the importance of organization?
4. Describe the steps in organization?
5. What is formal & informal organization?
6. Explain the functions of administrative office manager?
7. Explain the principles of Organization.
Principles of Office management 5
