The term organization is derived form the word “organism” which means structure with parts so integrated that their relation to each other is governed by their relation to whole.
The term organization is used both structural and functional sense. As a structure it means a developed enterprise being operated t achieve the given goals. As a function it refers to establishing relationship between activities and authority pertaining to an enterprise.
Organization is nothing but a process of integrating and co-ordinating the efforts of men and materials for the accomplishment of a set objective.
Definition
“Orgnisation is the process of identifying and grouping 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.
-ALLEN
Organisation thus is an arrangement for internal administration of the enterprise. It describes the part which each employee is intended to play in the operation of an enterprise and ensures that concerned endeavour of all of them will be conductive to the full implementation of the plans of the enterprise.
Factors included in the concept of organization
a) Assembly of business elements such as men, money and materials.
b) Creation of formal relationships between men employed at different levels through a hierarchy of authority.
c) Defining the functional role of the personnel and laying down the range of their responsibility for business performance.
d) Operating the organizational activities in conformity with the establishment objectives of the enterprise.
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