Organisation begins when people combine their efforts for some common purpose. It is a universal truth that an individual is unable ability and resources.
Organisation as a System: In the fourth sense, the organisation is viewed as system. The constituent element of a system are linked together in such complex ways that actions taken by one producer have far reaching effect on others.
In short, organizing is the determining, grouping and arranging of the various activities deemed necessary for the attainment of the objectives, the assigning of people to those activities, the providing of suitable physical factors of environment and the indicating of the relative authority delegated to each individual charged with the execution of each respective activity.
Definitions of Organisation Different authors have defined organisation in different ways. Other objectives must be established by the administration from time to time to aid and support this main objective. Within the department, the functional duties should be allotted to particular individuals. A close relationship between authority and responsibility should be established. It involves deciding who will act under whom, who will be his subordinates, what will be his span of control and what will be his status in the organisation.
Besides these formal relationships, some informal organizations should also be developed. A sound organisation increases efficiency, avoids delay and duplication of work, increases managerial efficiency, increases promptness, motivates employees to perform their responsibility.
Sound organization prevents corruption by raising the morale of employees. They are motivated to work with greater efficiency, honesty and devotion. The organizational process exerts its due and balanced emphasis on the co-ordination of various activities. Since a good organisation demands that the duties be clearly assigned amongst workers, such overlapping and duplication is totally eliminated.
Whether an organisation is good or bad depends on the fact as to how much efficiently and promptly it is in a position to achieve the objectives. An ideal organisation is one which is expected by all.
Some people think that an ideal organisation stands in a dream only and actually it does not exist. However, it is a wrong concept. An ideal organisation is a reality which can be achieved through the active cooperation of all the members of an organisation and also by following the principles of organisation is not an exact science as physics and chemistry.
An organisation conceived and developed on the above lines will reward its leaders and well as its members Personnel. Not only will the objectives be achieved more easily, and conveniently, but the physical operation of the organisation will also be greatly enhanced. Thus, a sound or good or ideal and result-oriented organisation must posses the following characteristics.
For this purpose, the organisation should be divided in several department, sub-departments, branches and units etc. Ordinarily, a person personnel cannot control more than five or six subordinates. Every executive must know his scope of activities, the ideal number is three. Man works in a group or in an organisation and hence the success or failure of any organisation depends on as to how much the organisation is in a position to provide satisfaction to individuals or group working under him.
Further, there should also be active coordination and cooperation amongst the various departments an sub- departments. It will also assist in elimination the evil of red tapism. No one in any organisation should report to more than one line supervisor, and everybody must know to whom he reports and who reports to him.
No subordinate should get orders from more than one supervisor, otherwise it will lead to confusion, chaos and conflict. The inter-communication system should be clear and easier and there should be no ambiguity at and level. They work with full capacity, energy, enthusiasm, devotion and sincerity. Thereafter, many other writers on the subject have added a few more principles of organisation. Organisation serves as a tool in attaining these prescribed objectives. Every part of the organisation and the organisation as a whole should be geared to the basic objective determined by the enterprise.
According to this principles division of work between the employees must be based on their ability, capability, tasks, knowledge and interest. This will ensure specialization and specialization will lead to efficiency, quality and elimination of wastage etc. There must be clear lines of authority running from the top to the bottom of the organisation. It is the tool by which a manager is able to create an environment for individual performance. This principle avoids the possibility of conflicts in instructions and develops the feeling of personnel responsibility for the work.
The duties, responsibilities, authorities and organizational relationship of an individual working on a particular position should be well defined. Major objective should be split into functional activities and there should be one objective and one plan for each group of people.
For effective grouping and assigning activities, this principle calls for putting balance on all types of factors human, technical as well as financial. If the organisation has sound labor policies along with a number of welfare activities it is bound to succeed.
It requires the management to follow the following process of organisation. The result is the establishment of departments like Purchase, Sales, Production, Accounts, Publicity and Public relations. The departments can be further classified just as production department into 1 Planning 2 Designing, 3 Operations, 4 Production Control and 5 Repairs and Maintenance. The division of the work is based upon the fact that specialization is keynote of efficient organisation. Grouping process is called departmentation.
Department may also be based on products, such as textiles, cosmetic, stationery etc. These departments may have different sections as per requirement. Here are some steps that you can follow when filing for your LLC registration. When it comes to business names, you need to take note of both the legal and trade name of the venture.
On the other hand, some companies have a trade name. The article of organization requires a business name that pertains to the legal name of the business. The nature of business refers to the category of commerce sector that your business belongs in.
For this form, you must indicate the purpose of the corporation along with its North American Industry Classification System NAICS code, which is used to classify the different registered establishments in the country. An article of corporation identifies critical individuals that are vital for the corporation. These individuals are the director and the corporator. The director is the designated leader of the corporation; this person is at the helm of the business.
The form requires the complete name and accurate mailing address of the appointed director. The same directive is extended to the designated corporator of the company. It is common knowledge that several people share ownership over a corporation.
Thus, it is impossible to create a framework of how corporations work without tackling the shares of stocks. It is an essential part of the entire corporation ordeal—to share the benefits from the company and to shield from debts and other liabilities. As for this document, you only need to disclose the type of stock that will be shared among the different stakeholders. It also asks for the number of the available sharable stocks. To fill this part of the document, make sure to come up with an amenable arrangement among all the owners.
An article of corporation is easily a one-page document, but it contains several crucial information that can compromise the registration of the company when not appropriately filed. So, before you skim through and fill up the document in one go, make sure to review all the details that will reflect on the form.
Check the names, primarily if you provided the legal name of the business and not the trade name. Yes, nonprofit organizations require this document because it is necessary for its registration. Filing the document usually goes together with a payment for a separate filing fee. No, a business license is a completely different document. A business license is a permit from the government that allows the business to operate.
On the other hand, the article of the organization registers the business as an official enterprise in the state. The main difference lies in the purpose of the document.
An article of incorporation is for creating a corporation while an article of the organization is for LLCs. Several states offer an online filing and application for the article of organization of their LLCs. One of the pioneering states that allow this process is California. A simple document such as this article of organization rarely gets amended but if necessary, you can file for an amendment and pay the subsequent fee. One of the most challenging decisions that owners make for their business is deciding for their business ownership.
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