2. Give synonym to the word profit-seeking organization.

3. Speak about the difference in management of large business, small business and international management.

Read text 3 and say what the difference between organization structure, organization design, chain of commands and organization chart is.

Text 3. The Nature of Organization Structure

If you are like most people, you have probably had the experience of running into a problem that made you want to speak to the supervisor or next in command in an organization. Under such conditions, you would probably respond with disbelief if you were told that no one knew who the supervisor was or whose job it was to handle a complaint like yours. We expect such matters to be worked out—at least by organizations that have some hope of long-run survival. In essence, we expect that the organizations with which we deal have developed reasonably effective organization structures.

Organization structure is the formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achiev­ing organizational goals. The word "formal" in this context refers to the fact that organization structures typically are created by management for specific purposes related to achieving organizational goals and, hence, are official, or formal, outcomes of the organizing function. Organizations also have informal structures, or patterns of interaction, which are not designed by management but which emerge usually because of common interests or friendship.

The process of developing an organization structure is sometimes referred_; to as organization design. Organization structure consists mainly of four ele­ments:

1. The assignment of tasks and responsibilities that define the jobs of individu­als and units.

2. The clustering of individual positions into units and of units into depart­ments and larger units to form an organization's hierarchy.

3. The various mechanisms required to facilitate vertical coordination, such as the number of individuals reporting to any given managerial position and the degree of delegation of authority.

4. The various mechanisms needed to foster horizontal coordination, such as task forces and interdepartmental teams.

One aid to visualizing structure is the organization chart. Thus we briefly exam­ine the notion of the organization chart and review the related concept of the chain of command before analyzing the four main elements of organization structure in greater detail.

The organization chart is a line diagram that depicts the broad outlines of an organization's structure. Organization charts vary in detail, but they typically show in visual form the various major positions or departments in the organiza­tion, the way the various positions are grouped into specific units, reporting relationships from lower to higher levels, and official channels for communicat­ing information. Some charts show titles associated with the positions, as well as the current position holders.

Because organization charts facilitate understanding the overall structure of organizations, many organizations have found them useful. Such charts are par­ticularly helpful in providing a visual map of the chain of command.

The chain of command is the unbroken line of authority that ultimately links each individual with the top organizational position through a managerial position at each successive layer in between. The concept of chain of command stems from two basic principles developed by contributors to the classical management viewpoint unity of command and the scalar principle. Unity of command means that an individual should have only one boss at any given point in time. The scalar principle states that there should be a clear line of authority from the position of ultimate authority at the top to every individual in the organization. Thus the basic idea is that each individual in an organization should be able to identify his or her boss and trace the line of authority through the organization all the way to the very top position.

Today, most organizations that include more than a few individuals are likely to have organization charts showing the chain of command and the basic structure of the organization. Although such charts provide a broad view, they do not include all aspects of the structure picture. For example, organization charts do not normally include detailed information about how work is divided into specific jobs. Yet, as noted earlier in defining organization structure, the design of jobs is an important aspect of structure.

Read text 4 and say what job design is and why it is important for an organization.