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INTERNAL FACTORS OF ORGANIZATIONAL …

237 INTERNAL FACTORS OF ORGANIZATIONAL structure Cirikovic Abstract In order to realize the mission of business organization, which is the reason of its existence, it requires certain organization of elements in a way to result with the achievement of outlined mission. All these elements, the parameters are organized into a single ORGANIZATIONAL structure . Such a structure shows in which way are the given elements connected to each other, parts of the organization and the hierarchy of authority and commanding.

237 INTERNAL FACTORS OF ORGANIZATIONAL STRUCTURE Mr.Elida Cirikovic c_elida@hotmail.com Abstract In order to realize the mission of business organization, which is the reason of its existence, it requires certain organization of elements in

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Transcription of INTERNAL FACTORS OF ORGANIZATIONAL …

1 237 INTERNAL FACTORS OF ORGANIZATIONAL structure Cirikovic Abstract In order to realize the mission of business organization, which is the reason of its existence, it requires certain organization of elements in a way to result with the achievement of outlined mission. All these elements, the parameters are organized into a single ORGANIZATIONAL structure . Such a structure shows in which way are the given elements connected to each other, parts of the organization and the hierarchy of authority and commanding.

2 It can be freely stated that the ORGANIZATIONAL structure is a mean through which managers achieve the outlined aims. ORGANIZATIONAL structure once defined, is not unchangeable or given once forever. It is influenced by numerous FACTORS which can be, more or less, influenced by the company. Initial FACTORS for changing the ORGANIZATIONAL structure can come from the organization itself, and the management can influence them, as opposed to FACTORS coming from the environment, outside, in which the impact is very small or impossible. The aim of this work is precisely to illustrate the INTERNAL FACTORS of ORGANIZATIONAL structure , and interdependence of these FACTORS and the organization.

3 Each business entity exists to realize its mission. Its aim will be achieved by a defined strategy and aims for achieving the intended strategy. In order to accomplish this aim, the management must involve the technology in its implementation phase as well as the human factor, as the most relevant one, without which all this would just remain as a piece of paper. This work will illustrate the INTERNAL FACTORS of ORGANIZATIONAL structure , but will also point out how changes in these FACTORS concomitantly cause the changing of the ORGANIZATIONAL structure , which leads to the fact that the ORGANIZATIONAL structure is a flexible category and that the degree of its successful realization is reflected in that flexibility.

4 Key words: organization, structure , management, FACTORS , mission, strategy, goals, technology, hierarchy, employees. Introduction The meaning for the existence of a business entity is the realization of mission and its vision, for what it was established. The company realizes its task by using and combining all the elements of business activity. Managers are the ones who organize the people and define the ways of their connection and operation. The managers realize their mission by defining and setting ORGANIZATIONAL structure . Only, the well defined ORGANIZATIONAL structure is a guarantee for the realization of ORGANIZATIONAL goals.

5 It is not once and forever given, but is subject to changes, which are coming from the organization itself and can be influenced, it can also come from external environment, which can not be influenced. The company will accomplish its mission by defining its aims, which must fulfil certain conditions in order to be efficiently realizable, and consequently the ORGANIZATIONAL structure will depend on their characteristics. The aims will be implemented by defining strategies, the ways how the accomplishment is planned. Depending whether the chosen strategy is the leadership cost one or differentiation strategy, it will also depend on which strategy will be chosen.

6 Defined goals and strategies we use to get them implemented can be accomplished by using appropriate technology. In a word, technology is the knowledge to do something. Depending on whether the traditional or modern technology is used, the choice of ORGANIZATIONAL structure will depend. The ORGANIZATIONAL structure is directly related to the size of organization. It is quite clear that a young company will not be organized as a large developed one. From the human potential, as a factor, will depend if the defined ORGANIZATIONAL structure will be implemented and to what extent the success will be shown.

7 Characteristics, types of products greatly influence the mode of its production, and if the production will be organized as a single, serial or mass production. In this way the product appears as a factor that largely determines how the company will be organized for its production, the way how the ORGANIZATIONAL structure will be shaped. What the ORGANIZATIONAL structure will be depends on the location of the company, videlicet whether all the sections, business units of the company are at the same or different locations. The aim of this document is to present what are those INTERNAL FACTORS of ORGANIZATIONAL structure and what kind of impact they have on the organization structure .

8 The concept, definition and FACTORS of business organization The objectives and purposes of the former, the original and present organizations are almost identical and all are based on a primary need that the realization of a planned activity to be implemented in a most optimal way (the realization of the objectives at minimum cost). As society evolved, so has the organization developed as well. With the development of society and with the raising of living standards, sprout new needs that ought to be met, and on the other hand, we are faced with restrictions in terms of availability of raw materials.

9 If we add to this the constant and increasable fast changes in surrounding, one can clearly see the importance of organization and importance of the organization s response to all challenges, which are in front of it. M. Novak gives a very detailed definition of the organization: The ORGANIZATIONAL structure includes the entirety of connections and relationships between all FACTORS of production, and the entirety of connections and relations within each individual factor of production or business operations. Taylor however gives a different definition, in which the ORGANIZATIONAL structure , beforehand designed form of relation, where the leadership thinks, and workers only carry out orders.

10 1 Babi , believes that it is organically connected and mutually consistent group of people who through adequate material resources achieves placed goals. 2 Also, unje provides a comprehensive definition, by which the organization is a managerial function of a strategic character through which ORGANIZATIONAL top management creates assumptions for the realization of designed 1 Ze ir H.,Senad S.,D enan K., Organisation, Faculty of Economics in Sarajevo, 2 Ibid, 238 business strategy. 3 The very notion of ORGANIZATIONAL structure means the composition, skeleton, the structure of the organization.


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