Organizations can be structured in various ways to achieve their goals and objectives. Some common bases of organization include purpose or function, process, persons or clientele, and place.
Key Facts
- Purpose or Function: One of the bases of organization is the purpose or function it serves. Organizations can be organized based on the specific purpose or service they aim to perform.
- Process: Another basis of organization is the process or workflow. This refers to how tasks and activities are structured and coordinated within the organization.
- Persons or Clientele: The third basis of organization is the persons or clientele it serves. This involves considering the target audience or customers and organizing the organization accordingly.
- Place: The fourth basis of organization is the physical location or place where the organization operates. This includes factors such as geographical location, infrastructure, and facilities.
Purpose or Function
One of the bases of organization is the purpose or function it serves. Organizations can be organized based on the specific purpose or service they aim to perform. For instance, a manufacturing company may have departments such as production, marketing, and finance, each with its own distinct purpose and responsibilities. By organizing based on purpose or function, organizations can allocate resources and coordinate activities effectively.
Process
Another basis of organization is the process or workflow. This refers to how tasks and activities are structured and coordinated within the organization. Organizations can be organized based on the sequence of tasks or the flow of work. For example, a manufacturing company may have departments such as raw materials, assembly, and finished goods, each responsible for a specific stage in the production process. Organizing based on process allows organizations to streamline operations and improve efficiency.
Persons or Clientele
The third basis of organization is the persons or clientele it serves. This involves considering the target audience or customers and organizing the organization accordingly. For instance, a retail store may have departments such as men’s clothing, women’s clothing, and children’s clothing, each catering to a specific customer group. Organizing based on persons or clientele enables organizations to tailor their products and services to meet the needs of different segments.
Place
The fourth basis of organization is the physical location or place where the organization operates. This includes factors such as geographical location, infrastructure, and facilities. Organizations can be organized based on their geographical spread or the location of their operations. For example, a multinational corporation may have regional or country-specific divisions to manage its operations in different parts of the world. Organizing based on place allows organizations to adapt to local conditions and better serve their customers in different regions.
In conclusion, organizations can be structured based on various factors, including purpose or function, process, persons or clientele, and place. By choosing the appropriate basis of organization, organizations can align their structure with their goals, streamline operations, and improve overall effectiveness.
FAQs
What are the different bases of organization?
Common bases of organization include purpose or function, process, persons or clientele, and place.
What is the purpose or function basis of organization?
Organizing based on purpose or function involves structuring the organization according to its specific purpose or service. Departments are created based on their distinct purposes and responsibilities.
How does the process basis of organization work?
Organizing based on process involves structuring the organization based on the sequence of tasks or the flow of work. Departments are created to handle specific stages in the production or service process.
What is the rationale behind organizing based on persons or clientele?
Organizing based on persons or clientele involves considering the target audience or customers and structuring the organization accordingly. Departments are created to cater to the needs of different customer groups or segments.
What is the significance of the place basis of organization?
Organizing based on place involves structuring the organization based on geographical location or physical facilities. Departments are created to manage operations in different regions or locations.
How do organizations choose the appropriate basis of organization?
Organizations choose the basis of organization that best aligns with their goals, objectives, and operating environment. Factors such as the nature of the business, customer base, and geographical spread influence the choice of organizational structure.
What are the benefits of using a clear and well-defined basis of organization?
A clear and well-defined basis of organization can improve operational efficiency, enhance coordination and communication, and facilitate decision-making. It also helps organizations adapt to changes in the market and better serve their customers.
How can organizations ensure that their chosen basis of organization remains effective over time?
Organizations can ensure the effectiveness of their chosen basis of organization by regularly reviewing and adjusting it as needed. This involves considering changes in the business environment, customer preferences, and technological advancements.