Introduction to Organization and Management
Peter F. Drucker (1997, 1) noted that the 21st century is the century of social organizations. He pointed out that:
“Society in this century has become a society of organization. Social tasks--from providing goods and services to education and care of the sick and the elderly… Careers in organizations--that is, careers as managers and other professionals--are the principal careers opportunities for educated people.”
With this word, it is clear that our society and our living depend on organizations to provide essential goods and services. Everyone has a stake in making sure that organizations perform up to expectations. Good organizations make real and positive contributions to society. The performance of the organization, however, depends on its management system.
With this in mind, the purpose of this chapter is to acquaint reader with the concepts of organization and management. It will first discuss organization, its components and environment, and its social functions. The second part will discuss management process.
Organization: Definition and Characteristics
What is organization? This question was answered differently with different scholars. In the simplest form, however, the organization is referred to as “a collection of people working together to achieve a common purpose (Schermerhorn, 2001, 5). With this simple definition organization can be characterized as a social creature consists of:
1. People
2. Activities
3. Goals and Objectives
4. Materials and Money
5. Management
People: This is the essential part of the organization. Without people organization will cease its existence as it was created to serve people. It is possible that we can live without organization. With the organization, on the other hand, we can accomplish tasks that are far beyond the reach of anyone acting alone.
Activities: As organization was a human creation to serve us, it is only possible that various appropriate activities must be organized and carried out. Activities refer to functions that are designed, organized, and carried out in order to achieve organization goals and objectives.
Goals and Objectives: The purpose of any organization is what judge the usefulness of the organization. As purpose of any organization is to produce goods and/or services that are satisfy needs of its members. Something useful for society should ideally be produced in order for any organization to be able to justify its existence. The clear sense of purpose that are tied to “quality and satisfaction” is increasingly viewed as a source of organizational strength and performance.
Materials and Money: Without materials and money, it is impossible for organization to perform its mandated functions and purpose. Organization is responsible to convert appropriate raw materials and money into goods and services that are satisfy needs of the society. As materials and money are finite and scare, it is important that organization must use them effectively, efficiently, and economically.
Management: In order to carry out its functions effectively, efficiently, and economically, organization uses a management system. With this system organization can plan, organize, direct and control all its activities.
Organization as an Open System
A system is a collection of interrelated parts that function together to achieve a common purpose (Schermerhorn, 2001, 5). For example, a digestive system consists of mouth, food artery, stomach, intestine, etc. that work together in order to convert food and water for the body to used. They are all interrelated that if one is missing the whole system may fail. In general the system is considered to have four parts: input, process, output, and feedback as depicted in figure 1.1.
Figure 1.1: Components of a system
A system works by taking input as resources in to a system. Through its conversion processes input is converted into output that are feedback through the feedback loop.
It is helpful to view organization as an open system. An open system is a system that has and interacts with its environment in the continual process of transforming resource inputs into product outputs in the form of finished goods and/or services (Schermerhorn, 2001, 5). Figure 1.2 shows an organization as an open system.
Figure 1.2: Organization as open systems.
Source: Schermerhorn, John R. (2001). Management, 6th edition. New York: John Wiley & Sons, Inc. p. 6.
As depicted in Figure 1.2 an organization interacts with the environment by receiving various resource inputs include people, money, materials, technology, information, etc. from the environment. These resource inputs was converted by the organization’s transformation process into product outputs consist of finished goods and/or services that are feed back to the environment. The feed back loop also provide avenue for the environment to express its demands and support for the organization. These demands and support act as an engine that drives organization existence since it allows organization to extract resources from the environment. Without this permission it is impossible for the organization to have the resource input required for its performance. Hence, it is very important that organization carries out its functions according to its purposes and to meet society expectation.
Another aspect of the relationship between organization and its environment is that most of the environment is external to the organization and doesn’t influence by the organization. In addition, the environment is complex and uncertain. Hence, it is very important that organization knows and understands its environment.
Organizational environment is classified into two types: general and specific environment. General environment consists of all the background conditions in the external environment. This environment forms a general context for organization works and activities. This environment sometime is referred to as socio-politico-economic environment that includes factor such as social-cultural condition, political-legal condition, economic condition, technological condition, natural environment condition, and international condition.
Specific condition refers to the actual organizations, groups, and persons with whom an organization must interact in order to survive and prosper (Schermerhorn, 2001, 30). Chapter 2 will discuss in more detail on organization environment.
Functions of Organization
As organization is required to perform its function for individuals and society, it is important to note the social functions that are performed by organization, Talcott Parson (1956), a Sociologist, pointed out 4 basic functions of the society. According to Parson, every society regardless of their stage of development is required to perform the following functions:
1. Adaptation
2. Goals Attainment
3. Integration
4. Pattern Maintenance.
Adaptation refers to the function that convert societal raw material into goods and services that are required by the society. Parson associated this function to economic function and is carried out by economic institutions such as business enterprise, factory, etc.
Goal Attainment refers to the function about setting society goals and direction and providing means to achieve those goals. Parson associated this function to the political function of the society and is carried out by political institution such as government, political party, interest group, etc.
Integration refers to the function that brings together and assimilates all the groups in the society together by sharing common heritages such as language, culture, nationality, etc. Parson associated this function with the social and national function and is recognized as history, monarchy, nations, national symbol, etc.
Pattern Maintenance refers to the societal ways of life that are passing from generation to generation. It is a cultural function of the society and is carried out by social institution such as family, church, school, etc.
Introduction to Organization and Management Peter F. Drucker (1997, 1) noted that the 21st century is the century of social organizations. He pointed out that:“Society in this century has become a society of organization. Social tasks--from providing goods and services to education and care of the sick and the elderly… Careers in organizations--that is, careers as managers and other professionals--are the principal careers opportunities for educated people.” With this word, it is clear that our society and our living depend on organizations to provide essential goods and services. Everyone has a stake in making sure that organizations perform up to expectations. Good organizations make real and positive contributions to society. The performance of the organization, however, depends on its management system. With this in mind, the purpose of this chapter is to acquaint reader with the concepts of organization and management. It will first discuss organization, its components and environment, and its social functions. The second part will discuss management process.Organization: Definition and Characteristics What is organization? This question was answered differently with different scholars. In the simplest form, however, the organization is referred to as “a collection of people working together to achieve a common purpose (Schermerhorn, 2001, 5). With this simple definition organization can be characterized as a social creature consists of:1. People2. Activities3. Goals and Objectives4. Materials and Money5. Management People: This is the essential part of the organization. Without people organization will cease its existence as it was created to serve people. It is possible that we can live without organization. With the organization, on the other hand, we can accomplish tasks that are far beyond the reach of anyone acting alone. Activities: As organization was a human creation to serve us, it is only possible that various appropriate activities must be organized and carried out. Activities refer to functions that are designed, organized, and carried out in order to achieve organization goals and objectives. Goals and Objectives: The purpose of any organization is what judge the usefulness of the organization. As purpose of any organization is to produce goods and/or services that are satisfy needs of its members. Something useful for society should ideally be produced in order for any organization to be able to justify its existence. The clear sense of purpose that are tied to “quality and satisfaction” is increasingly viewed as a source of organizational strength and performance. วัสดุและการเงิน: ไม่ มีเงินและวัสดุ มันเป็นไปไม่ได้สำหรับองค์กรที่ทำหน้าที่บังคับและวัตถุประสงค์ของการ องค์กรรับผิดชอบในการแปลงวัตถุดิบที่เหมาะสมและเงินเป็นสินค้า และบริการที่ตอบสนองความต้องการของสังคม วัสดุและเงินมีจำกัด และแผล มันเป็นสิ่งสำคัญที่องค์กรต้องใช้อย่างมีประสิทธิภาพ มีประสิทธิภาพ และสะอาด การจัดการ: การดำเนินงานได้อย่างมีประสิทธิภาพ มีประสิทธิภาพ และ กาญจน์ องค์กรใช้ระบบการจัดการ ด้วยระบบนี้ องค์กรสามารถวางแผน จัดระเบียบ โดยตรง และควบคุมกิจกรรมทั้งหมดองค์กรเป็นระบบเปิด ระบบคือ กลุ่มของส่วนที่เกี่ยวข้องที่ทำงานร่วมกันเพื่อให้บรรลุวัตถุประสงค์ทั่วไป (Schermerhorn, 2001, 5) ตัวอย่าง ระบบย่อยอาหารประกอบด้วยปาก หลอดเลือดแดงอาหาร กระเพาะอาหาร ลำไส้ ฯลฯ ที่ใช้ทำงานร่วมกันเพื่อแปลงอาหารและน้ำในร่างกาย พวกเขาจะเกี่ยวข้องทั้งหมดที่หนึ่งหายไปทั้งระบบอาจล้มเหลว โดยทั่วไป ระบบจะถือว่ามีสี่ส่วน: ป้อนข้อมูล กระบวนการ ผลลัพธ์ และผลป้อนกลับที่แสดงในรูปที่ 1.1 รูปที่ 1.1: คอมโพเนนต์ของระบบ ระบบการทำงาน โดยการป้อนข้อมูลเป็นทรัพยากรในระบบ ผ่านของกระบวนการแปลง อินพุตจะถูกแปลงเป็นผลผลิตที่มีผลป้อนกลับผ่านลูปผลป้อนกลับIt is helpful to view organization as an open system. An open system is a system that has and interacts with its environment in the continual process of transforming resource inputs into product outputs in the form of finished goods and/or services (Schermerhorn, 2001, 5). Figure 1.2 shows an organization as an open system.Figure 1.2: Organization as open systems.Source: Schermerhorn, John R. (2001). Management, 6th edition. New York: John Wiley & Sons, Inc. p. 6. As depicted in Figure 1.2 an organization interacts with the environment by receiving various resource inputs include people, money, materials, technology, information, etc. from the environment. These resource inputs was converted by the organization’s transformation process into product outputs consist of finished goods and/or services that are feed back to the environment. The feed back loop also provide avenue for the environment to express its demands and support for the organization. These demands and support act as an engine that drives organization existence since it allows organization to extract resources from the environment. Without this permission it is impossible for the organization to have the resource input required for its performance. Hence, it is very important that organization carries out its functions according to its purposes and to meet society expectation. Another aspect of the relationship between organization and its environment is that most of the environment is external to the organization and doesn’t influence by the organization. In addition, the environment is complex and uncertain. Hence, it is very important that organization knows and understands its environment. Organizational environment is classified into two types: general and specific environment. General environment consists of all the background conditions in the external environment. This environment forms a general context for organization works and activities. This environment sometime is referred to as socio-politico-economic environment that includes factor such as social-cultural condition, political-legal condition, economic condition, technological condition, natural environment condition, and international condition. Specific condition refers to the actual organizations, groups, and persons with whom an organization must interact in order to survive and prosper (Schermerhorn, 2001, 30). Chapter 2 will discuss in more detail on organization environment.Functions of Organization As organization is required to perform its function for individuals and society, it is important to note the social functions that are performed by organization, Talcott Parson (1956), a Sociologist, pointed out 4 basic functions of the society. According to Parson, every society regardless of their stage of development is required to perform the following functions:
1. Adaptation
2. Goals Attainment
3. Integration
4. Pattern Maintenance.
Adaptation refers to the function that convert societal raw material into goods and services that are required by the society. Parson associated this function to economic function and is carried out by economic institutions such as business enterprise, factory, etc.
Goal Attainment refers to the function about setting society goals and direction and providing means to achieve those goals. Parson associated this function to the political function of the society and is carried out by political institution such as government, political party, interest group, etc.
Integration refers to the function that brings together and assimilates all the groups in the society together by sharing common heritages such as language, culture, nationality, etc. Parson associated this function with the social and national function and is recognized as history, monarchy, nations, national symbol, etc.
Pattern Maintenance refers to the societal ways of life that are passing from generation to generation. It is a cultural function of the society and is carried out by social institution such as family, church, school, etc.
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