Nature and Purpose of
Organization
Presented by: Sanskriti Pandey
Organization
• An organization is a group of people who
work together, like a neighborhood
association, a charity, a union, or a
corporation. You can use the word
organization to refer to group or business, or
to the act of forming or establishing
something.
Nature of Organization
1. Structure of relationships :
• Organization is a system of well-defined tasks and duties
assigned to people along with delegation of authority,
responsibility and accountability. Delegation provides formal
structure to the organization. Constant interaction amongst
individuals creates social relations helps and a structure of
informal organization.
2. Adaptive to change:
• Though organization structure provides stability to activities of
members, it sis open to change. Changes in the environment,
internal or external, are incorporated into the organization
structure. This makes organization and ongoing process.
3. Ongoing process:
• Organizing is a process which involves a series of steps, from
determination of objectives to accomplishment of objectives. It
is a continuous process which requires management to
introduce changes (re-organization) in the way and organization
works. Many organizations re-structure their set-up every five to
seven years.
4. Goal-oriented:
• Every organization is formed for some objective; profit or
service. All organizational activities are divided amongst
members, departments are created. Work is co-ordinate and
continuous monition of activities is done to achieve the
objective. The process of organization is, thus, a goal-oriented
process.
Purpose of Organizing
• The main purpose of such a structure is to help
the organization work towards its goals. It
brings members of the organization together
and demarcates functions between them.
• Secondly, the structure also helps in ensuring
smooth and efficient functioning. In other
words, it reduces time, money and efforts. This
happens only because every person knows
what her responsibilities are. Work happens
with precise coordination with minimum
wastage of resources.
Formal Organisation:
• In every organisation, employees are
guided by rules, policies, and
procedures, and the structure of
jobs and positions of employees are
clearly defined for achieving smooth
functioning of the organisation. Such
a structure is known as Formal
Organisation. In a formal
organisation, the position,
responsibility, authority and
accountability of each and every
employee is defined for achieving
organisational goals. It is stable, rigid
and coordinates the effort of every
department.
Informal Organisation
• Interaction amongst employees at the
workplace gives rise to networks of
informal communication and employees
cut the official channels and form their
own social groups, which are known
as Informal Organisations. Such informal
organisations emerge from within the
formal organisation. It arises out of
frequent contact of people with each
other based on common interests. It has
no definite structure as it comprises a
network of social relationships. It has no
specific direction for the flow of
information and is flexible. It is helpful in
faster communication and fulfils the
social needs of employees at the
workplace.
