Organization; an organization is social arrangement which pursues collective goals which control its own performance and which has a boundary separating it from its environment. Examples; supermarket, car manufacturing, Audit firm, Army, navy…etc…

Why organizations exist?
•	Because it overcome individual limitation.
•	It encourages expertise (specialist) and division of work and more productivity.
•	It offer synergy, i.e. the sum is greater than whole.
•	Accumulate knowledge.
Differences of organization; 
1.	By objectivities; for profit making organizations and not for profit organization.
2.	By sector; private or public
Public organization is run by government.
Private sector organization is not own by government.

Differences	Company	partnership	
•	Legal personality	Legal person	No separate legal person	
•	Ownership of Asset	Own its property	Own by partners	
•	Management	Directors/managers	Partners or owners	

The public sector; NHS hospital, Armed force, Schools etc…
Characteristic;	Accountability to parliament
	 	Funding by taxes, charges, borrowing.
		Demand for services
		Limited resources are provided by government.
Advantages of public sector;
-	fairness
-	filling the gap that is not provided by private sectors
-	public interest
-	Economic of scale
-	Cheap finance
-	Efficiency
Disadvantages;
-	Accountability (agency problem)
-	Interference by politicians
-	Cost conflict. (conflict for economy)
Non-government-organization
	Not directly linked with national government and their aim is not a commercial but for social political and environmental change.

Organization structure (Mintzberg)

Strategy apex	Ensure the organization follow its mission,
Manage relationship with environment.	Direct supervision	
Operation core	People directly involve in production and system	Mutual adjustment of stand and skill.
	
Middle line	Convert the desire of strategic apex into the work done by the operating core.	Standardization of outputs. (result)	
Techno-structure	Analysis determine the best way of doing job; QC and performance measure.	Working process is Standaization	
Supporting staff	Ancillary service; public relation, legal counsel, separate from core operation.	Mutual adjustment	

Functional organization structure; Grouping together people who do similar tasks.
Adv;	
•	pooled expertise or specialist
•	Avoid duplication of work so economic of scale
•	Centralized management 
Disadvantages;	
•	Focus internal process not on external e.g. customer services.
•	Poor communication and corporate between department.
•	Vertical barrier; delay in decision making.

Head office
(Managing director)

Human resource department
(HR director)

Production department
(Production manager)

Accounting department
(Chief accountant)

Product/Geographical departmentation; organization is structure based on geographical area, product line e.g. geographical- Landon, Singapore, Paris, New York etc…
		Product line- Travel, hotel, guides etc…
Advantages;	Quick and suit decision making.
		Good training ground for general 
		Specialisation & focus on one area 
		More cooperation
Disadvantages;	Duplication of effort on cost/ resources/time
			Inconsistency in Standardizations

Head office

Mandalay branch

Yangon Branch

Taung-gyi branch

Human Resources

Selection &Training 

Branch manager

Account

Production

Marketing

Senior account

Designing

Advertising

Branding bring the product to the attention of buyers and creates brand recognition, differentiation & loyalty.   
 Often customer does not realize that two rival brands are under same control.
Customer departmentation is based on customer types to structure organization. Each department is responsibility for their own major customer.		                

Divisionalisation; Each division has its own revenue, expenditure and capital asset purchase program and its own profit and loss responsibility.
It may be subsidiary, profit center or investment center or strategic business units.
Key conditions to become Divisionalisation
•	Delegated authority
•	Enough management, independent from senior support 
•	Potential growth
•	There is an arm’s length transition between inters-departmental dealing.

Advantages	Disadvantages	
•	More focus on their divisions	•	Difficult to separate division 	
•	Reduce unpredictability division	•	May be discretion is at the hand of senior	
•	Attention on more efficiency and profit	•	Resource allocation problem	
•	Succession plan for junior	•	Budget slack & conflict of interest (goal)	
•	Delayer		

Hybrid structure; Combination of two or more structure e.g. product and Geographical structure.

 Simple structure; Strategic Apex exerts retain control over decision making called pull to centralized.
-	There is only strategic apex and operation core.
-	Small and young organization, managed by one senior.
-	If it becomes grow, it requires more manageable skills and succession crises.
-	It is a form of centralized so, management is full knowledge of the operation core and intervenes
-	Fast moving with no standard, no coordination activities by achieve by direct supervision.
-	Wide span of control.

Matrix and project organization
Subordinate is responsible or reporting to two senior/boss.
Functional manager control over specialist/functional area while project manager control over budget and responsible for deadline.
Advantages	Disadvantages	
•	Flexibility and good in work related decision	•	Conflict between dual authority	
•	Readily amended base on demand	•	Conflicting demand and 	
•	Mix of skill and expertise	•	Role ambiguous	
•	Improve motivation because of participation	•	Sometime slow decision because of complexity	
•	Market awareness	•	Management cost more	
•	Communication is horizontal flow remove red tap.		

The new organization-
	
•	Flatter structure;	Delayer and more responsive. Strategy and customer services are more closely related	
•	Horizontal structure	Flexibility	
•	Chunked and unglued structure;		Team working	
•	Output focus structure	Results are more important, view outward	.	
•	Jobless structure	Employee become skill seller, mobile, portfolio of skill,                              employability is. more important	

The shamrock organization
A core of essential executives and workers supported by outside contractors and part time help.
This structure permits the buying in services as needed, with consequent reductions in overhead cost.(flexible firm)

1.	Professional core
	Professional, technicians and managers. They are essential to the continuity and growth of the organization. Their pays are linked with performance.	
2.	Self-employed professionals
	Hire on contract or project by project basis. No benefit , no security of job.	
3.	Contingent work force
	Temporary or part time. Employment on demand. So short period of employment and long period of unemployment. Pay by hour, day or time basis.	
4.	Consumer
	Who do the work of organization, self service.	

•	Advantages;	 Flexibility in term of personnel cost/number according to requirement
			 Multi-skilled.