Differences Between Organisation as Structure and as Process

Topics: Organization, Organizational studies, Business Pages: 3 (706 words) Published: April 2, 2013
Week 3 reading on The Purpose of Business Organisation defines organisation as " the form taken up by individuals who must work together as a collective enterprise in order to achieve the ultimate goals of the business". Roberts (2004) further adds that firms exist to coordinate and motivate people's economic activity. This means that by deciding to pull their efforts towards achieving set goals or objectives, these individuals stand to enjoy economic gain.

Organisation : Differentiating Between Structure and Process Division of labour is described as the basic structure of an organisation in Week 3 reading on The Purpose of Business Organisation defines organisation. This structure involves setting clear roles and responsibilities for each member of the organisation. This brings about clarity in the management process by creating a system of order and command through which the organisation's activities can be planned, Organised, directed and controlled. A good organisation structure is a key element in formulating strategies in an organisation.

Organisation is a process on the other hand seeks to establish that an organisation is not a rigid structure that has been put in place but a continuous process of interactions by individuals whose activities are interdependent. These interdependent activities are coordinated to ensure cost minimization and value creation for the organisation.

From the above explanations, I see my organisation as exhibiting characteristics of both types of organisational definitions. It has both elements of the organisation as a structure and as a process. As a structure, the company is clearly divided into various sections playing specific roles. In a typical wholesale banking setting, there is the relationship management team, the treasury team, the trade services team, transaction banking and client services. This division of labour is done according to objectives set by the bank for the various teams. The various teams...

References: Hearn S & Choi I. 2013. Creating a Process and Organization Fit Index: an Approach toward Optimal Process and Organization Design. [Online]
Available from
Accessed on March 24 2013.
Module 1: Strategic OrganisationWeek 3: The nature and purpose of business organisation. The purpose of business organisation
Available from http://elearning.uol.ohecampus.com/bbcswebdav/xid-516339_4
Accessed March 24 2013
Roberts, J. (2004) The modern firm: organizational design for performance and growth (Chapter 3, pp. 88–103).
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