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Module 1
Organization
Organization is a pattern of relationships among the individuals working together for a common goal.
The systems approach considers organization as a system composed of sub systems that are inter-related. Systems have boundaries, but they also interact with external environment. That is, they are open systems. This approach recognizes the importance of studying inter-relatedness of planning, organizing, and controlling in an organization as well as the many subsystems.
Characteristics of Organization
1) Organization is made up of a group of people
2) The group works under an executive head
3) Organization is a tool of management
4) It leads to division of work and responsibilities
5) It defines and fixes the duties and responsibilities of employees
6) It establishes a relationship between authority and responsibility and controls the effort of the group
7) Organization is a step towards achievement of established goals
Elements of Organization
The main elements or components of an organization are:
1) Well defined objectives
2) Well organized and coordinated group of people
3) Proper division of work and labour
4) Clear and well defined policies and procedures
5) Proper division of authority and responsibility
6) An effective system of communication
Organization Chart

Simple Organization Chart

Lecture Notes on Industrial Organization and Management
Subject handled by: Dr. Shouri P.V., Asst. Professor in Mechanical Engineering, MEC, Cochin (for S7 Biomedical)

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An organization chart is a simple drawing of lines and boxes showing how the firm is organized. Boxes represent the activities of the firm and the people who perform these activities. Lines indicate the relationships among them. Positions near the top of the chart have more authority and responsibility than those below them. The number of