Wednesday, January 19, 2011

Meaning characteristics of organization

Today’s, more and more people are employed by organization. We need so many services to sustain life. Which are provided by them. Hence, organizations are processing units, which transform certain inputs from the environment into specified outputs desired by society. They have become instruments of work that produce essential goods and services for the greater society.
An organization comes into existence when there are a number of persons willing to contribute towards a common goal.
First, an organization is a collection of people. Their combined effort produces synergy or a total effort that is greater than the sum of the individual efforts. Second, through division of labor or specialization the work is subdivided which permits individuals to develop expertise in their assigned task. As a result, they improve their own and the group’s effectiveness. Third, these specialized tasks must be coordinated as the people work together towards the fourth component, a common goal. Thus, an organization is a group of people who come together to attain a common goal.

Characteristics of organization are as under:
Social composition: organization is a social unit which consists of two or more people. They work together and develop social relations and patterns of interactions. They set and pursue common goal.
Goal orientation: an organization is deliberately created to achieve certain goals. Without a goal no organization would have a reason to exist. They provide direction and guide actions of the organization. A typical organization seeks to accomplish three primary goals: profit, growth, and survival. Goal can be multiple and confliction. Thus, organizations exist for stated and sometimes unstated goal/purposes.
Differentiated functions: organizations must have people with different skill and knowledge to perform varied types of functions to achieve the common goals. For efficiency, organization typically divides the work so member can specialize in one or two areas. Every function is assigned to the employee who is the most fit to perform the particular function.
Rational coordination: the efforts of various people working in different functional areas need to be coordinated. Work activities are coordinated in some rational manner to achieve common goal. If different departments work independently, it may lead to chaos and make uncertain to achieve common goal.
Continuity: members may join and leave the organization. But organization continues and enjoys eternal equity. Most organizations are born with the intention of staying alive, although that does not always happen.
Structure: an organization is a structure, in which jobs to be performed are arranged in a hierarchy. It is the skeleton around which an organization is built. The coordination and integration of human activities requires a structure where various people are fitted. Within the structure, people work to achieve the common goal.
Environment: organization exists and operates in a dynamic environment. Their internal as well as external environments such as economic, social, political-legal and technical environment influence every organization. Hence, organizations have to maintain a close relationship with them.

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