It enhances creativity: A well-conceived and comprehensive organization is the source of creative thinking and initiation of new ideas.It ensures optimum use of human resource: Good organization establishes individuals with interests, knowledge, skills, abilities and viewpoints. 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.A tool for achieving objectives: Organization is an important tool in the hands of management for accomplishing the objectives of an enterprise.The importance of organization is as stated below. From the standpoint of enterprise as a whole, organization is the structural relationship between various factors in an enterprise.”- SpriegelĪ 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. 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. “In its broadest sense, organization refers to the relationship between the various factors present in the given endeavor.“Organization is a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes.” – Haney.“Organization is the form of every human association for the attainment of a common purpose.” – Mooney and Reily.“Organization is a system of cooperative activities of two or more persons.” – Chester Barnard.“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 as a Group of Persons: Organization is very often viewed as a group of persons contributing their efforts towards certain goals.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. System concepts recognize that organizations are made up of components, each of which has exclusive properties, abilities and reciprocated associations. Organization as a System: Organization is also viewed as a system.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.Organization as Framework of Relationships: Organization refers to the structure and interactions among various job positions which are created to realize certain objectives.The term organization has been used in four different senses Examples of organization are Corporations, governments, non-government organizations, armed forces, non-profit organizations etc. In a static sense, an organization is a structure or machinery manned by group of individuals who are working together towards a common goal. Thus, organization is the structure or mechanism that enables living things to work together. 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. Organization is the foundation upon which the whole structure of management is erected.
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