What Is Organisation: Meaning, Definition, and Characteristics

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What Is Organisation: Meaning, Definition, and Characteristics. Learn more about Organization: Meaning, Definition, Concepts and Characteristics!

Organisation Meaning

An entrepreneur organizes the resources of production, such as land, labor, capital, and machinery, to channelize them into profitable endeavors. The product ultimately reaches customers through a variety of channels. Various business activities are divided into several departments; each department is headed by a different person.

Each individual effort must contribute to the accomplishment of company goals. The organizational structure is a framework for duties and responsibilities that individuals must fulfill in order to achieve business objectives via organization. To meet predetermined objectives, management attempts to integrate various commercial activities.

The company’s present business system is rather complicated. To stay competitive in the business environment, the unit must be operated effectively. People with the appropriate skills and talents are needed to perform a variety of tasks. First and foremost, various processes should be divided into separate functions. The power and duty are distributed across numerous levels. Efforts should be made to combine different activities in order to run units efficiently, so that costs of production may be reduced while profitability of the unit may be enhanced.

‘Organisation’ Definitions By Authors

  • Louis Allen, “Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility is fixed for accomplishing the same.
  • Wheeler, “Internal organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company………… It is essentially a blue print for action resulting in a mechanism for carrying out function to achieve the goals set up by company management”. In Wheeler’s view, organization is a process of fixing duties and responsibilities of persons in an enterprise so that business goals are achieved.
  • Koontz and O’Donnell, ‘The establishment of authority relationships with provision for co-ordination between them, both vertically and horizontally in the enterprise structure.” These authors view organization as a coordinating point among various persons in the business.
  • Oliver Sheldon, “Organization is the process so combining the work which individuals or groups have to perform with the facilities necessary for its execution, that the duties so performed provide the best channels for the efficient, systematic, positive and coordinated application of the available effort”. Organization helps in efficient utilization of resources by dividing the duties of various persons.
  • Spriegel, “In its broadest sense organisation refers to the relationship between the various factors present in a given endeavor. Factory organisation concerns itself primarily with the internal relationships within the factory such as responsibilities of personnel, arrangement and grouping of machines and material control. From the standpoint of the enterprise as a whole, organisation is the structural relationship between the various factors in the enterprise”.
  • Spriegel has given a wide definition of the organization. He has described it as the relationship among persons, factors in the enterprise. All factors of production are coordinated in order to achieve organisational objectives.
  • George Terry, “Organising is the establishing of effective authority relationships among selected work, persons, and work places in order for the group to work together efficiently”. According to Terry organisation is the creation of relationship among persons and work so that it may be carried on in a better and efficient way.
  • C.H. Northcott, ‘The arrangement by which tasks are assigned to men and women so that their individual efforts contribute effectively to some more or less clearly defined purpose for which they have been brought together”. According to Northcott the purpose of organisation is to co-ordinate the activities of various individuals working in the organisation for the attainment of enterprise goals.
  • L.H. Haney, “Organisation is a harmonious adjustment of specialised parts for accomplishment of some common purpose or purposes”. Organisation is the adjustment of various activities for the attainment of common goals.

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Concepts of Organisation

There are two concepts of organisation:

  1. Static concept
  2. Dynamic concept

Static Concept

The word “organization” is used in a variety of ways. In this usage, it refers to a group of individuals linked together in a formal relationship with the goal of attaining shared goals. It places emphasis on position rather than on individuals.

Dynamic Concept

The word “organization” is used in a dynamic concept as a process of an ongoing activity.

In this regard, organization is the process of arranging work, people, and technology. It is concerned with the process of determining tasks that are required to achieve an aim and putting them in appropriate groups so they can be assigned to individuals.

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It views organization as an open inclusive system rather than a closed one. The term “individuals” has greater priority in the dynamic notion, emphasizing that organisation is a continuous process.

Characteristics of Organisation

Different writers have their own point of view on the term “organisation.” One thing that all of these viewpoints have in common is that organization is the establishment of authority link among people, which aids in the accomplishment of organizational goals.

Some of the characteristics of organisation are studied as follows:

Division of Work

The term “organisation” refers to the process of running a business. The entire operation of a firm is divided into activities and functions.

Different people are responsible for specific tasks in order for them to be successful. Division of labor results as a result of this.

It’s not that one person can perform many duties; rather, it’s essential to specialize in different tasks in order to improve efficiency. Organisation aids in separating jobs into individual actions, which are then assigned to different people.


Coordination is just as important as division. It aids in the integration and harmony of several tasks. Coordination also eliminates duplications and delays.

In fact, various functions in an organization are interrelated, with one action affecting the other. Unless all activities are coordinated, the success of all parts is jeopardized.

Common Objectives

The goal of any company is to make money. All organization architecture serves a purpose in the achievement of corporate objectives.

The pursuit of various sectors’ goals leads to the accomplishment of major business objectives. The organizational structure should be built around shared and precise goals. This will aid in their fulfilment.

Co-operative Relationship

An organization is a group of people that has formed a co-operative relationship. An individual cannot establish an organization on his or her own.

At least two or more people are necessary. Organizational structures assist in the development of meaningful relationships between individuals.

The structure should encourage employees to execute their tasks together as a team. It’s important to build a framework that encourages personnel to work together as a team.

Well-Defined Authority-Responsibility Relationships

A hierarchy is a system in which various jobs are organized in order from top to bottom with well-defined authority and responsibility. A chain of command extends throughout the organization, always originating from a central authority. The hierarchy of roles establishes the channels of communication and pattern between individuals.

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