After reading this essay you will learn about:- 1. Concept of Organisation 2. Importance of Organisation 3. Characteristics 4. Elements 5. Process.

Essay on the Concept of Organisation:

Almost any business manager will affirm that sound organization is highly important to business success. Many will characterize organisation as the foundation upon which the whole structure of management is built. Organisation is a mechanism or structure that enables living things to work effectively together.

Organisation may be defined as the process of:

(i) Identifying and grouping the work to be performed,


(ii) Defining and delegating responsibility and authority, and

(iii) Establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.

Organisation is the pattern of ways in which a large number of people engaged in a complexity of tasks, relate themselves to each other in systematic establishment and accomplishment of mutually agreed purposes.



(i) Establishes the pattern of relationship by giving duties and responsibility to an individual or group;

(ii) Demarcates the authority, responsibility and duties of each individual or group;

(iii) Provides adequate communication; and

(iv) Coordinates or integrates and controls the activities of individuals or groups to achieve common objectives or objectives of the business enterprise.

Essay on the Importance of Organisation:


Sound organization can contribute greatly to the continuity and success of the enterprise.

The importance of organization can be judged from the following words of A. Carnagie, an American Industrialist:

“Take away our factories, take away our trade, our avenues of transportation and our money. Leave nothing but our organisation, and in four years we shall have re-established ourselves”.

Facilitates Administration:


A properly designed and balanced organisation facilitates both man­agement and operation of the enterprise; inadequate organisation may not only discourage but actually preclude effective administration.

Facilitates Growth and Diversification:

Sound organisation permits organizational elaboration.

The organization structure can profoundly affect the people of the enterprise. Proper organisation facilitates the effective use of the manpower.


Stimulates Creativity:

Sound organisation stimulates independent, creative thinking and initia­tive by providing well defined areas of work with broad latitude of the development of new and improved ways of doing things.

Optimum Use of Resources:

Sound organisation structure permits optimum use of technical and human resources. The organization can introduce latest technological improvements e.g., computers, computerized machines etc. It can also make optimum use of human efforts through specialisation, by placing right persons in the right positions etc.


A sound organization leads to specialization.

A sound organization minimizes corruption and inefficiencies.

A sound organization does not generate confusion.

There is less wastage and expenditure. A sound organization facilitates the training and managerial development of personnel.

Essay on the Characteristics of Organization:


The characteristics or essential features of an organisation are:

(a) Organisation is a group of people, small or large.

(b) The group works under an executive leadership.

(c) Organisation is a tool of management.

(d) It leads to division of work and responsibilities.

(e) It defines and foes the duties and responsibilities of employees.


(f) It establishes a relationship between authority and responsibility and controls the efforts of the group.

(g) Organization is a step towards the achievement of established goals.

Essay on the Elements of Organization:

By elements of organization, we mean the main parts or components of an organization:

The main components of the organisation are:

(a) Well defined objectives.

(b) Well organised and coordinated group of people.


(c) Proper division of work and labour.

(d) Clear and well defined policies and procedures.

(e) Proper division of Authority and Responsibility.

(f) An effective system of communication.

Essay on the The Process of Organisation:

The process of organisation may be described as the managerial function of organising.

The important steps involved in the process of organisation are:


(a) Determination of Objectives:

Objectives decide as to why the proposed organisation be set up (purpose) and what will be the nature of work to be accomplished through the organisation.

(b) Deciding Various Activities:

To achieve the objectives, the process of organisation is divided into functions, sub-functions and further sub-functions to be performed by an individual. The principles of division of work, specialization etc., are followed. This avoids duplication, confusion and wastage of men, machine, money and material.

(c) Grouping of Activities:

Activities of similar nature (or closely related ones) are grouped under departments, sections or divisions. These may be grouped on the basis of use, coordination, policy and control etc. There may be different departments in an enterprise like Personnel, Finance, Purchase, Production, Sales etc.


(d) Assignment of Responsibilities of Definite Persons:

Specific job assignments are made to different persons (subordinates) for ensuring a certainty of work performance. Right man is put on the right job.

(e) Delegation of Authority:

Corresponding to the responsibility given to a subordinate, authority is delegated to him, to enable him to show work performance.

(f) Providing Physical Facilities and Proper Environment:

Provision of right type of physical facilities and environment is essential for the smooth running and prosperity of the organisation. Physical facilities include – Proper machinery, tools etc. Right environment means proper lighting, ventilating and heating/cooling arrangements at the place of work, reasonable hours of work, rest intervals, safety devices, job security, job satisfac­tion and above all human approach by management.