What Is Organization and Why Do They Form?

Topics: Formal organization, Organization, Management Pages: 1 (406 words) Published: February 19, 2013
Organization is basically a group of people who are striving towards a common goal and in this process they control their own performance and have a boundary which separates them from their environment. The purpose of the modern organization is to make it easy and natural and expected for people to take risks. Organizations exist to overcome the problem of individual limitations, physically, mentally and of course financially. This can enable the individual to specialize in their strengths. An organization that is established as a means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. Organizations exist because there are certain things that individuals, even when they’re motivated and cooperating with each other, cannot do very effectively as individuals. People who work in organizations may become more productive and efficient at what they do rather than people who work alone. Most of organization exists for the basic aim to make money. But in addition of this, an organization also pools resources (like men, money, machines and materials). It shares skills, knowledge and expertise. It also sets into play a sort of 'synergy'. The ultimate aim of most organizations is to make money so that the shareholders and owners can benefit from it. On the other hand, there are some organizations which are not for profit. Their aim is to work for the betterment of the society as a whole. They have no concern with profit making. However, they are active seekers of sponsorships and aid from...
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