August 21, 2012

Concept And Meaning Of Organization

Organization refers to a mechanism which enables people to live together and perform the activities collectively. Organization is the foundation on which the whole structure of management is built. Organization is the backbone of management, without which managers cannot perform what they have to perform.

Organization or organizing is one of the important function of management. To achieve corporate goals, strong, reliable and effective organization is needed. Goals may net be achieved if all the sections, departments and divisions are not well organized, coordinated and integrated. Organizing involves those means, techniques, methods and procedures which help to integrate and coordinate different functions and units of the business.

Concepts Of Organization

'Organization'' as a word is being used in two sense. These two concepts of organization are as follows:

1. Organization as a structure/Organization in static sense
Organization as a structure is a static concept. It is a framework of the business and a structure of relationship between various positions of the organization. It can be understood as a structural framework of duties and responsibilities through which an organization functions.

2. Organization as a process/Organization in dynamic sense
Organization as a process is a dynamic concept. It is most acceptable concept of organization. As a process, organization determines, arranges, groups and assigns the activities of the enterprise to achieve the common goals.