Introduction to Organization and Management - Chapter 1 - Part 1

Meaning of Organization and management 

Organization is the foundation upon which the whole structure of management is built. Organization is related with developing a frame work where the total work is divided into manageable components in order to facilitate the achievement of objectives or goals. In a static sense, an organization is a structure or machinery managed by group of individuals who are working together towards a common goal.

Different authors have defined organization in different ways. The main definitions of organization are as follows:

·         According to keith Davis, "Organization may be defined as a group of individuals, large or small, that is cooperating under the direction of executive leadership in accomplishment of    certain common object."

·         According to Chester I. Barnard, "Organization is a system of co-operative activities of two or more persons."

·         According to Louis A. Allen, "Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationship for the purpose of enabling people to work most effectively together in accomplishing objectives."

·         According to Mooney and Railey, "Organization is the form of every human association for the attainment of a common purpose."

The term organization has also been used in four different senses: as a process, as a structure of relationship, as a group of persons and as a system, as given below:

(i)                Organization as a Process: In this first sense, organization is treated as a dynamic process and a managerial activity which is essential for planning the utilization of company's resources,  plant an equipment materials, money and people to accomplish the various objectives.

(ii)             Organization as a Framework of Relationship: In the second sense organization refers to the structure of relationships and among position jobs which is created to release certain objectives. For example: According to Mooney and Reily, "Organization is the form of every human association for the attainment of a common purpose."

(iii)            Organization as a Group of persons: In the third sense, organization is very often viewed as a group of persons contributing their efforts towards certain goals. Organization begins when people combine their efforts for some common purpose. Barnard has defined 'Organization' as an identifiable group of people contributing their efforts towards the attainment of goals.

(iv)      Organization as a System: In the fourth sense, the organization is viewed as system. System concepts recognize that organizations are made up of components each of which has unique properties, capabilities and mutual relationship. The constituent element of a system is linked together in such complex ways that actions taken by one producer have far reaching effect on others.