According to the concept of Arthasastra, there are four factors of production - land, labor, capital, and organization. According to Kunz and O'Donnell total, the purpose of organization of an organization is to bind the employees to mutually constructive relationships so that individual efforts can be combined.
Methods of organization are –
Identifying the activities required to run the organization
These activities may be varied; Such as production, finance, purchase, sale, recruitment of manpower, security etc.
Division of Activities
Maintenance of machinery is an integral part of production activities. Therefore, such activities can be divided into two parts - production and maintenance of machinery. Two aspects of safety - fire fighting and fire prevention. Therefore such activities can be divided into two categories - factory safety and organization property protection. In this way it is possible to identify and divide an activity into a number of homogeneous work classes.
Appointment of an Acting Administrator or Manager in each category
(ii) No. In the paragraph we learned that it is possible to divide an activity into cohorts or similar activities. Appointing an administrator to take over the authority of this group or similar work is absolutely necessary. E.g. – Production Manager and Maintenance Manager. Managers, who are responsible for looking after all the work like production and maintenance respectively.
Creation of resources of horizontal and vertical integration
Every class and its manager are somehow related to the activities of other classes or their managers. For example, production manager is related to the work of materials manager for supply of raw materials etc. and marketing manager is related to the work of proper supply of manufactured goods to the market. These relationships depend on the activities of each individual in the organization, both horizontally or at the same level and vertically or at different levels - everyone is involved in these activities. From this line of thinking we are able to prepare an organization structure according to job classification. No worker position is shown in this structure because the purpose of organization is to identify similar tasks and create a structure that will integrate all the activities of the organization so that the overall integration can be successful. For the policy on recruitment to various positions, see "Staffing" paragraph.
