Organization Need People or People Need Organization

Topics: Maslow's hierarchy of needs, Customer service, Insurance Pages: 13 (4285 words) Published: September 14, 2010





Definitely organization always works for its customers. Profits of any organization are only depending on the no. of customers it have. So you can say that organization needs people (as customers) for its proper growth and sustainability.

On the other side question arises that how an organization work? Simple answer!
The people working for the organization make it to work. This group of people is known as workforce. Is it not the two sides of the same coin which is always focuses for the profit, growth and personal requirements whether it is an organization or the people.

Without people, organization cannot achieve their goals, and vice versa without organization people cannot fulfill their needs and desires .So both the organization and people are mutually interdependent on each other. Let’s talk one by one.


There are two ways in which an organization needs people for its existence 1. As Customers
2. As workforce


With the increased globalization of markets, competition among market players has become more severe. In this competitive market, one of the most important factors is the achievement of customer satisfaction and excellence in service. Although the concept of customer satisfaction in customer oriented management is not new, the relationship between customers and corporations has been changing almost daily. Customers are becoming the absolute entity for corporations as the final decision makers for business deals and purchases of products.

All organizations exist to serve a customer. Customers are real people, not account numbers or enterprise names. Because of this, customer buying decisions are very often made for emotional reasons. It is therefore most important to understand customers, their level of satisfaction, and their opinions of an enterprise, as well as their opinions of its competitors, if the enterprise is to grow and improve its market share. SWOT analysis can also play a role in understanding customers.

Peter Drucker, the highly regarded management scholar and writer, stated, “The only valid definition of business purpose is to create a customer.” Successful organizations of the future will be those that can provide goods and services to the customers who want it, where they want it, and in the quantity and at the price they want it, thereby delighting rather than merely satisfying customers. Customer delight will lead to loyalty, which is one of the critical indicators used to measure the success of a marketing strategy. Services cannot, however, be performed without some form of relationship between the producer and the consumer and cannot be stored and retained for later use in the way typical of many tangible goods.

Business corporations make efforts to create and provide their customers with higher value added, which consists of elements such as lower prices, additional benefits, and uniqueness in services. With rapid advances in information and communications technology, corporations can take advantage of the emerging IT systems to create infrastructure within the organization to improve responsiveness to customer needs and to track those needs, thereby improving customer satisfaction significantly. Top management should be aware of how to tap the power of IT to enhance customer services, resulting in better service quality and streamlining of processes.

Here is an example where you can find that why customers are important for the existence of a company or organization

EXAMPLE 1: Auto insurance companies require information about people who live with you Are car insurers allowed to require information about the people who live with you for your auto insurance policy? The very idea of an auto insurance company demanding such information from you may seem offensive....
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