Organization is an important tool to achieve organizational objectives Comment

Organization is the foundation upon which the whole structure of management is erected. Organization is associated with developing an outline where the overall work is divided into manageable components in order to facilitate the achievement of objectives or goals. Thus, organization is the structure or mechanism that enables living things to work together. In a static sense, an organization is a structure or machinery manned by group of individuals who are working together towards a common goal. Examples of organization are Corporations, governments, non-government organizations, armed forces, non-profit organizations etc.

The term organization has been used in four different senses;

1. Organization as Framework of Relationships: Organization refers to the structure and interactions among various job positions which are created to realize certain objectives.
2. Organization as a process: Organization is viewed as a dynamic process and a managerial activity which is vital for planning the utilization of company’s resources.
3. Organization as a System: Organization is also viewed as a system. System concepts recognize that organizations are made up of components, each of which has exclusive properties, abilities and reciprocated associations. The constituent elements of a system are linked together in such complex ways that actions taken by one individual have far reaching effects on others.
4. Organization as a Group of Persons: Organization is very often viewed as a group of persons contributing their efforts towards certain goals.

Definitions of Organization

• “Organizations may be defined as a group of individuals large or small thetre cooperating under the direction of executive leadership in accomplishment of certain common object.” – Keith Davis
• “Organization is a system of cooperative activities of two or more persons.” – Chester Barnard
• “Organization is the form of every human association for the attainment of a common purpose.” – Mooney and Reily
• “Organization is a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes.” – Haney
• “In its broadest sense, organization refers to the relationship between the various factors present in the given endeavor. Factory organization concerns itself primarily with the internal relationships within the factory such as responsibilities of personnel arrangement and grouping of machines and material control. From the standpoint of enterprise as a whole, organization is the structural relationship between various factors in an enterprise.”- Spriegel

Need / Importance of Organization

A renowned industrialist of U.S.A, Andrew Carnegie when sold his company ‘United States Steel Corporation’, showed his confidence in organization by saying “Take away our factories, take away our plants, our avenues of transportation, our money, leave nothing but our organization and we shall establish better factories.” Since ages and all walks of life, organization has been playing a significant role. The importance of organization is as stated below.

1. A tool for achieving objectives: Organization is an important tool in the hands of management for accomplishing the objectives of an enterprise.
2. It facilitates administration and management: A sound organization increases efficiency, avoids duplication of work, avoids delay in work, improves managerial skills and motivates employees to perform their duties.
3. It ensures optimum use of human resource: Good organization establishes individuals with interests, knowledge, skills, abilities and viewpoints.
4. It enhances creativity: A well-conceived and comprehensive organization is the source of creative thinking and initiation of new ideas.
5. Prevents Corruption: Enterprises which lack sound organization most of the times have problem of corruption. Sound organization helps to prevent corruption by raising morale of the employees. As a result of which employees are encouraged to work with higher efficiency, commitment and honesty.
6. Fosters growth of enterprise: Good organization plays a key role not only in growth but also in the expansion and diversification of an enterprise.
7. Eliminates overlapping and duplication of efforts: In a situation, where the distribution of work is not clearly identified and the work is performed in a haphazard manner there will be duplication and overlapping of efforts. As a good organization requires that the work be clearly assigned amongst employees, such overlapping and duplication is to be eliminated.
8. Coordination: Various jobs and positions are linked together by structural relationship of the organization. The organizational process exercises its due and balanced emphasis on the coordination of different activities.

Principles of Organization

For timely and systematic completion of work it is must for every organization to adopt some techniques or principles. Thus these principles would be the deciding factor for the success or failure of an organization.

What is the importance of objectives in an organization?

Why objectives are important for organizational success?

Is a management tool to achieve organizational objectives?

What are the means to achieve the organization objectives?