What is Organization? Nature and Importance of Organization

Organization is a economic and social entities in which a number of persons perform multifarious tasks in order to attain common goals organizations are effective instruments in that they help individuals accomplish personal objectives that they cannot achieve alone.


Meaning and Definition

According to Argyis___” Organizations are usually formed to satisfy objectives that can best be meet collectively”.

“The process of systematic and logical grouping of activities, delegation of authority and responsibility and establishing working relationships that will enable both the company and employee to realise their mutual objectives”.

Principles of Organization

  • Principle of Objective: It is established with a specific mission,purpose and objective like constructing building for profit.
  • Principle of Specialization and Division of Labour: It’s activities are divided into departments and units and tasks and each employee may be assigned with each task employees can specialise in that activity.
  • Principle of Coordination: All the activities,units and departments should be coordinated with the organization objectives,purpose and mission.
  • Principle of Continuity: Organization should continue their operations. Therefore, they should be flexible and responsive to the environmental changes.

Nature of Organization

  • Subdivision of main work into small groups
  • Based on principles of equality division of different activities ties
  • Selection of suitable personnels and allocation of jobs according to suitability
  • Allotments of rights and authority to those who have been assigned the job so that may be able to accomplish their job satisfactorily
  • Determination of positions at different levels.

Importance of Organization

  • Organizational Life: Organizational behaviour involves scientific research that helps us to understand the organizational life.
  • Industrial RelationsTrue that deficiencies in working conditions or inefficiencies employee stress Industrial relations. Nevertheless,often,conflicts among management, employees and trade unions arise to the indifference management shows to trade unions or other such personal aspect.
  • Organizational Efficiency: Successful manager is expected to have “people skills” to improve efficiency of an organization as a whole, individuals pursing.