An organization is a collection of people, systems and procedures which are put together to earn profits. In order to better manage the huge resource base and assets organizations need to be in some sort of organizational structure so that it can be formed into some form and clear lines are defined in order to control and get the productive use of organization’s resources.

“Decision making may take place by default; that is, without consciously recognizing that an opportunity for decision-making exists. This fact leads us to an important first element in a definition of decision-making. To have a decision-making situation, there must be at least two alternatives available. If only one course of action is available, there can be no decision-making, for there is nothing to decide. We would have no alternative but to proceed with the single available course of action. (One might agree, however, that it is a rather unusual situation when there are no alternatives course of action. More frequently, alternatives simply are not recognized.) “

A Manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career.

A leader is “a person who influences a group of people towards the achievement of a goal”

Formal organization is a fixed set of rules of intra-organization procedures and structures. As such, it is usually set out in writing, with a language of rules that ostensibly leave little discretion for interpretation. In some societies and in some organization, such rules may be strictly followed; in others, they may be little more than an empty formalism.

Within any company, there are two types of organization – Formal Structure and Informal Structure. Both effect the organization and relationships between staffs.

1. The formal Organization refers to the formal relationships of authority and subordinates withing a company. While the informal organization refers to the network of personal and social relations that is developed spontaneously between people associated with each other.

Forms of Communication

There are several forms of communication. These forms of communication fall under the umbrellas of communication that is symbolic, written, verbal, and of the body. In addition, there are digital and/or electronic forms of communication. Although these latter forms of communication are efficient, we must be mindful of the human element of face to face live communication that we require as human beings, and that a steady diet of digital and electronic communication can have a tendency to alienate us from one another.

Organizational structure involves, in addition to task organizational boundary considerations, the designation of jobs within an organization and the relationships among those jobs. There are numerous ways to structure jobs within an organization, but two of the most basic forms include simple line structures and line-and-staff structures.