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What is Organization?


Meaning and Definition of Organization

Organizing, or the process of organization, is a function of identifying, classifying grouping and assigning various activities necessary to achieve objectives and prescribing authority relationship in the enterprise.

Various definitions as follows:

  1. It is defined by Allen as “the process of identifying and grouping the work to and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
  2. According to Koontz, O’Donnell and Weihrich, organizing may be defined as “the grouping of activities necessary to attain objectives. The assignment of each grouping to a manager with authority necessary to supervise it, and the provision for co-ordination horizontally and vertically in the enterprise structure”

Significance or Importance of Organization

The organizing process, if followed carefully, Results into a sound organization with the following chief benefits importance:

  1. Facilitates management:

    A properly designed and balanced organization facilitated both management and operation of the enterprise organization facilitated both management and operation of the enterprise. Inadequate organization may not only discourage but actually preclude effective administration. A company can provide for effective accomplishment of various managerial functions only if it is organizationally sound. Management work can take place with certainty and continuity only if it is built into every management job and appropriate functional groups are provided to help managers to manage.

  2. Facilitates growth and diversification:

    The organization structure is the frame work within which and enterprise grows, and a flexible structure facilitates expansion and diversification. A structure which is ideally suited to and enterprise today may be inadequate and unsuitable when the enterprise expands or certain changes take place in the enterprise. An alert, and well- managed enterprise anticipates the need for change to facilitate growth before it is hampered by shackles of its own making.

  3. Permits optimum use of technological improvements:

    New technological developments increasingly influence the need for more adequate organization structures and for understanding the proper forms of organisation best designed to accommodate these new factors. For example, the introduction of computers in an enterprise will require enterprise will require that compute facilities are concentrated in one physical location, and some changes are made in the existing organisational set up. Only a dynamic organization structure will permit these modification.

  4. Motivated and develops managers:

    A sound organisation ensures that right jobs are assigned to right person. There is a harmonious relationship between members of the organization, and work environment is congenial. This tends to provide motivation and improve job satisfaction thereby influencing in profoundly the people and their performance. Also, a sound organization structure may have a strong influence on the development of managers.

  5. Stimulates creativity and innovation :

    Creativity means the ability to develop new ideas, and innovation refers to the use of these ideas. In a business enterprise, this can mean a new product, and new service, or a new way and innovation by providing well – defines areas of work with broad latitude for the development of new and improved ways of doing things. It demands creative results from creative people, delegates routine work to supporting positions and provides recognition for the professional and the specialist in terms of their achievements.

  6. Improves efficiency:

    The ultimate effect of a sound organization is improvement in efficiency and quality of work of the enterprise through synergism. And that is the purpose of organizing to aid in making objective meaningful and to contribute to organizational efficiency.

  7. Enhances dignity of labour:

    A strong organization associated workers in decision making process. This helps in ensuring whole-hearted co-operation of the workers t achieve the set targets. In fact even the targets are set in consultation with the employees. In case targets are not achieved the workers will not blame the management by alleging that the targets sets were too high to be achieved as they themselves were a party to the setting of the targets.

  8. Contributes to high morale:

    It is a corollary of the previous point A healthy organization not only enhances dignity of labour but also it raises the morale of the employees. The employees clearly know their responsibility and authority and feel delighted when they are associated with decision making process.

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