ABSTRACT

Organizations have always existed in one form or another. When human beings began to do collective activity as a means of improving their chances of survival and quality of life, the basis of the social organization was formed. Organizations can also be categorized into those that operate for profit and not for profit institutions. An organization could be described as a collection of individuals who are organized into groups and subgroups and “interact” with each other in an “interdependent relationship.” The Great Pyramids, and cultures and civilizations like Indus valley are few examples of prescientific era organizations. Organization design is the process by which managers create a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way. Organizational structure is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals.