What is Organization: Nature of Organization?
The concept of organization has been evolved from the commencement of human civilization when they started to live in groups. It means that the family is the beginning form of organization. But nowadays, people have to form different types of an organization on the basis of their goals consisting of business, social, religious, clubs and so on.
Groups of people are associated and coordinated for achieving common goals. Member having similar interests and goals becomes ready to form a group for a joint effort with different tasks and responsibilities. The division of works is carried out on the basis of the efficiency and specialization of the group members. Activities of each member get coordinated with the help of an effective communication network. Responsibility and authority are delegated on the basis of the structure of the organization.
An organization comes into existence when a number of persons willing to contribute their efforts to achieve a common goal. It is a human association for the attainment of a common goal. In common sense, a group that is formed by two or more persons to achieve a common objective is called an organization. In other words, the organization is an association of two or more individuals working together in a coordinated manner to achieve common goals. It is a collection of people working together with a division of labor or work to achieve a common purpose. When people decide to accomplish any work or job for mutual benefit, they need to form an organization.
In fact, work or job that cannot be performed by a single person, but can be performed effectively in a group. People should join organizations when they could not perform the work or job in an effective manner.
Therefore, people form an organization on the basis of their goals, allocate works on the basis of efficiency, delegate authority and responsibility, maintain communication among them and coordinate the activities among all the members. The term “organization” has been defined in many ways by experts.
The organization can be viewed in two ways. In a static sense, an organization is a structure performed by a group of individuals who are working together toward attainment for a common goal. In a dynamic sense, the Organization is a process of combining and assigning various functions to different people and fixing the responsibilities for accomplishing the works to achieve the organizational goals.
In conclusion, a group of people working together for the achievement of a common objective is called an organization. It is an essential social aspect of human life. The name of organizations can be given on the basis of the nature of its works. Furthermore, the common features or characteristics of an organization clarify the meaning.’
The main characteristics of the organization are:
Association of People: An organization consists of people who interact with each other while they are at work. In an organization, people perform a variety of activities to achieve a goal. Mutual understanding and cooperation are necessary for the smooth operation of an organization. Hence, an organization is a human association formed to achieve a common goal.
Common Goal: The basis of an organization is a common goal. It is a reason to be associated with an organization. All activities of the members cocreate on the attainment of a common goal. It motivates them to devote their effort to produce synergy.
Allocation of Works: All the works are allocated into small units on the basis of the nature of the jobs and ability of the members. Each work is assigned to different individuals on the basis of their skills, ability, and experience. This enables the development of the concept of specialization among the individuals and also contributes to developing the working efficiency.
Coordination: All activities in the organization are performed through coordination. The works which are divided into individuals need to be linked together to focus on objectives. Coordination integrates the efforts of various departments and members for the uniform performance of the organization.
Social composition: An organization exists to serve the needs of people caring norms and values of the society. So, it is a social unit. People in the organization interact with each other as social relations in workplaces. They prefer participation with dignity and equity for mutual benefits.
Hierarchy of authority: The hierarchy of authority is performed on the basis of the degree of responsibility and accountability. It clarifies the role of each individual from the top of the subordinate level in the organization. Therefore, authority or power has a clear hierarchy delegated from higher to the lower level to perform organizational activities successfully.
Environment: An organization operates its activities in a dynamic environment. It consumes or takes the necessary resources from the environment and converts them into output. Its suppliers’ output to its external environment. But the environmental elements may or may not remain under the control of the organization. Basically, the impact of external environments like political, economic, socio-cultural and technology must be taken into consideration. But the internal environments like objectives, policy, structure, resources and internal culture, etc. remain under control of the organization.
Types of organization, We most Understand!
The organization can be classified on the basis of its nature of works.
- Business Organization: The organizations involved in the production and distribution of goods and services to the customers are called business organizations. The main objective of the customers are called is to earn a profit. So, they are established for the purpose of making financial profits. Such business organizations are conducted by the private sector as well as public sectors. They are mainly engaged in trading, concerns, partnership firms, joint-stock companies, and multinational companies.
- Professional Organizations: The organizations which are formed by the persons of various professions with a purpose to protect professional rights and interest are called professional organizations. These kinds of organizations are also called mutual benefits associations. So, the main objective of such organizations is to protect professional rights and interest to its members. They are established to satisfy the needs of people who have common interests. They work to serve the interest of members, for example, professional associations like Chartered Accountant Association, Teachers Associations, Chamber of Commerce, etc.
- Service Organization: The organization established with the purpose of providing specialized service in a certain sector of the society is called service organization. Service organizations are formed for providing different social services to people. They promote social welfare activities in the country. They are non-profit motives for social organizations. For example schools, hospitals, campuses, religious, cultural, social and non-governmental organizations.
- Governmental Organizations: All government bodies are called government organizations. The main purpose of a governmental organization is to provide service to the general public. Such organizations are run wit the revenues collected from the people. So, they are established for the need and satisfaction of the common people and their wellbeing. For example Ministers, Government Departments, Police Administration, Army, Arm Force, etc.
- International Organizations: The organizations established by two or more countries for a common purpose are called international organizations. The organizations are the associations of many countries. Their purpose is to promote the interest of member countries. Such organizations are established with special objectives in tow or more countries, for example, UNDP, IMF, World Bank, UNICEF, etc. They are involved in promoting trade and socio-cultural relations among the member countries and also providing financial aid to them.
The concepts of Organizational Goals
The organization is an association of two or more individuals works in together in a coordinated member to achieve common goals. An organization is a collection of people working together in a division of labor to achieve a common purpose. The management process begins with setting organizational goals.
Goals provide direction to the organization about what is to be done. The goal serves as the reason for the organization to exist. They are the end result to be achieved. If an organization fails to achieve it is it can be said that is has failed in its objectives.
Goals are objectives or aims for which an organization has been formed. The intended results of an organization are the initial is called organizational goal. Setting the goals of an organization is the initial function of management. Goals are what organizations want to achieve in the future. They are objective toward which organizations direct their resources and efforts. Goals give meaning and purpose to the organization. They determine the scope of future activities. They are also determining the action to be taken at present to obtain results in the future.
Without the formation of the goal, no work can be done. Without a goal, no organization can be established and conducted. So, “Goal is the soul of any organization.” Organizational goals may be both short term and long term. The goal intended to achieve in the short term is short term goal and goal intended to achieve in the long term is long term goal.
For example, the goal to satisfy customers by providing quality goods and services only for the three months or for the limit duration is called short term goal whereas maximizing long term profit, maximizing shareholders’ wealth and social welfare are long term goals.
Goals are what an organization wants to achieve in the future applying all of its resources. It determines the destination of an organization that is to be attained as a success of the management. Goals provide guidelines to concentrate the resources and efforts of the organization.