Organization: Definition, Aspects and Need | Management

In this article we will discuss about:- 1. Definition of Organization 2. Aspects of Organization 3. Need/Importance.

Definition of Organization:

Some of the definitions of organization are:

Organization is a group of people who are co-operating under the direction of leadership for the accomplishment of a common goal.

OR

Organization is the framework of duties and responsibilities through which an undertaking works.

OR

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.

Aspects of Organization:

Organization involves the following aspects:

i. Identifying the activities required to achieve organizational objectives.

ii. Grouping up of these activities into workable units.

iii. Assigning duties and responsibilities to subordinates in order to achieve the tasks assigned.

iv. Delegating authority necessary and useful for the accomplishment of tasks assigned.

v. Establishing superior-subordinate relationship.

vi. Providing a system of co-ordination for integrating the activities of individuals and departments.

Need/Importance of Industrial Organization:

Organization combines the various people working together in an industry. Efficiency of an industry depends on the good organization. Organization facilitates efficient administration, direction and control. It avoids wastage of raw materials and human efforts. Every management has to establish its own organization structure for efficient conduct of business activities.

The need of industrial organization is because of the following reasons:

i. Complexity of industry.

ii. Increase in competition.

iii. Optimum utilization of resources.

iv. Facilitates administration.

v. Communication.

vi. Co-ordination.

vii. Industrial peace.

vii. Economic necessity.

ix. Ensures growth, expansion and diversification.

x. Stimulates creativity.

i. Complexity of Industry:

Due to increase in size of industrial units, introduction of modern machines and increasing labor problems, there is need for every industry to be well organized.

ii. Increase in Competition:

Due to increase in completion in the market, companies have to produce the quality products to stay in the market.This is possible only with the help of a sound organization.

iii. Optimum Utilization off Resources:

A good organization structure is must for an industry to use all its resources such as men, materials, machines, money and methods.

iv. Facilitates Administration:

Effective administration of business will not be possible without the support of sound organization structure. Delegation of authority, departmentation and decentralization are the tools for effective administration.

v. Communication:

Orders are to be passed from top to bottom. A good organization devises the system, which communicates the orders, messages, complaints etc. between various levels of management.

vi. Co-Ordination:

Good organization co-ordinates and controls the activities of individuals or groups to achieve the common goals of industry.

vii. Industrial Peace:

Good organization is required for maintaining industrial peace as various categories of workers are working in an industry.

viii. Economic Necessity:

Good organization will remove all the unwanted and wasteful expenditures of the industry.

ix. Ensures Growth, Expansion and Diversification:

Sound organization structure facilitates expansion/diversification of an enterprise. Organization structure has in-built capacity to absorb additional activities and also have effective control on them.

x. Stimulates Creativity:

Organization provides training and self-development facilities to managers and subordinates through delegation and departmentation. It also encourages initiative and creative thinking on the part of managers and others.