What is Organization – Definition and Explanation

According to Business Dictionary. A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems–they affect and are affected by their environment.

According to Stephen P. Robbins A deliberate arrangement of people to accomplish some specific purpose.

Basically, an organization in its simplest form (and not necessarily a legal entity, e.g., corporation or LLC) is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from one person to tens of thousands.

There are several important aspects to consider about the goal of the business organization. These features are explicit (deliberate and recognized) or implicit (operating unrecognized, “behind the scenes”). Ideally, these features are carefully considered and established, usually during the strategic planning process. (Later, we’ll consider dimensions and concepts that are common to organizations.)

Vision. Members of the organization often have some image in their minds about how the organization should be working, how it should appear when things are going well.

Mission. An organization operates according to an overall purpose, or mission.

Values. All organizations operate according to overall values, or priorities in the nature of how they carry out their activities. These values are the personality, or culture, of the organization.

Strategic Goals. Organizational members often work to achieve several overall accomplishments, or goals, as they work toward their mission.

Strategies. Organizations usually follow several overall general approaches to reach their goals.

Systems and Processes that (Hopefully) Are Aligned With Achieving the Goals. Organizations have major subsystems, such as departments, programs, divisions, teams, etc. Each of these subsystems has a way of doing things to, along with other subsystems, achieve the overall goals of the organization. Often, these systems and processes are define by plans, policies and procedures.

How you interpret each of the above major parts of an organization depends very much on your values and your nature. People can view organizations as machines, organisms, families, groups, etc. (We’ll consider more about these metaphors later on in this topic in the library.)

What is Organization

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