Organization, as one of the key concepts in management and organizational sciences, play a vital and essential role in society and economy. They have been formed throughout history in order to achieve their goals and regulate their various activities, and according to different needs and conditions, they include various types. In this article, a general definition and explanation about organizations will be provided. Then, we will examine its important features. Also, to read more articles about business organization, you can refer to the articles page.
What is an Organization?
Organization means a structure or an institution that is formed in order to regulate and manage activities and resources in order to achieve specific goals. They can exist in many areas and industries, including government, non-profit, commercial, etc.
They often have structures, regulations, procedures, and hierarchies that are used to regulate and control activities, divide tasks, determine responsibilities, and communicate within and between departments of organizational units. Also, they usually pursue a common goal or mission and formulate and implement strategies and plans to achieve it.
Their goals can be diverse, including producing goods and services, providing public services, improving people’s quality of life, developing industry and economy, preserving the environment, improving the level of community health, etc.
They can exist at different levels of size and complexity, from large and multinational foundations to small and local ones. Also, they can operate in a public or private manner and, if necessary, comply with the relevant legislation and regulations.
Different Parts of an Organization
The different parts of an organization will usually differ based on the type and size of the business as well as the activities and duties involved. But in many foundations, common patterns of divisions can be observed. Below are some common parts of a business:
Top Management (Executive Management): This section includes senior managers and business owners who are responsible for setting the overall direction of the business, making strategic decisions, and overseeing the foundation’s performance.
Operations Department: This department consists of teams and units that are responsible for executing the day-to-day activities and tasks of the business. This includes manufacturing, customer service, distribution, research and development, etc.
Financial and Accounting Department: This department is responsible for financial and accounting management of the organization. They are responsible for tasks such as budgeting, financial accounting, income and expenditure management, tax management and financial reporting.
Human Resources Department: This department is responsible for managing the human resources of the business, including recruitment, selection and attraction of employees, training and development, performance management, benefits and rewards, welfare management and personnel affairs.
Marketing and Sales: This department is responsible for planning and implementing marketing strategies, market research, advertising and sales of the foundation’s products and services.
IT Department: This department is responsible for managing IT systems, networks, applications and business information security.
Public Relations: This department is responsible for the Foundation’s external communications with the media, society and other stakeholders. They are involved in advertising, public relations and customer relationship management.
Legal Department: This department is responsible for legal advice, drafting contracts, protecting the organization’s rights and complying with legal rules and regulations.
Types of Organizations
The types of organizations are very diverse and can be categorized based on different criteria. Below, I mention some of their types:
Government Organizations:
It includes government foundations and institutions such as ministries, foundations and government companies that have duties and responsibilities that are related to the public interest of the country.
Non-Profit Organizations:
They are formed to provide public, social and charitable services. For example, non-profit organizations related to the fields of health, education, environment and human rights.
Business Organizations:
These foundations are formed with the aim of producing and selling products or services to the market. They may operate as large or small companies, private companies, cooperative companies, and public limited companies.
Non-governmental Organizations:
Non-governmental organizations (NGOs) or non-governmental foundations are formed independently of the government to achieve social, environmental, humanitarian and political goals. They can act as non-profit foundations, charitable foundations, human rights foundations and environmental foundations.
International Organization:
They are formed for cooperation and coordination on an international scale. For example, the United Nations (UN), the World Trade Organization (WTO), the Organization for Economic Cooperation and Development (OECD) and the International Human Rights Organization (Amnesty International) are among the international organizations.
Public Organizations:
They are formed as foundations in specific fields such as education, health, military, police, and public safety, and are committed to the public interest.
Recreational and Sports Foundations:
They provide recreational and sports activities for people. For example, sports clubs, Olympic foundations and organizations related to leisure and tourism activities.
Service:
These organizations provide various services to people. Examples of them include health and treatment foundations, public transportation, post and telecommunications, and insurance foundations.
Industrial and Manufacturing:
They work for the production and distribution of industrial products in different sectors of the economy. For example, automotive foundations, food industry, electronic industry and construction industry.
Features of the Organization
Organizations have different characteristics that can be defined as follows:
Purpose and Mission:
Foundations have a specific purpose and mission that is the main determinant of their activities and direction.
The purpose of the foundation is usually related to product production or service delivery and customer satisfaction.
Organizational Structure:
Foundations have a structure that reflects the division of tasks, hierarchy, and internal communication within the foundation. Organizational structure can be centralized, decentralized, matrix, process-based, or a combination of these.
Resources and Abilities:
Foundations use different resources and capabilities to achieve their goals. These resources include financial, physical (machinery, equipment and infrastructure), human (employees and managers) and cultural (knowledge and experience).
Processes:
Foundations use different processes to carry out their activities. These processes are related to production, distribution, marketing, human resource management, financial management and other fundamental activities.
Organizational Culture:
This organizational culture includes common values, beliefs, attitudes and behaviors that prevail in the foundation. Organizational culture determines the behavior of employees and internal interactions and acts as a measure of coordination and organizational identity.
Communication System:
Foundations need internal and external communication to carry out their activities. The basic communication system includes information flow, communication systems and communication methods in business.
Flexibility:
Foundations must be able to respond to changes and developments in the internal and external environment. Organizational flexibility means the foundation’s ability to change its strategy, structure and processes in order to adapt to changes and new needs.
Staff:
Foundation employees are important as the main factors in the performance of the organization and the realization of its goals. Organizations use different resources to attract, maintain and develop human resources.
These are only some of its features and each foundation may have other features depending on its type, industry and specific conditions.
The Purpose of the Organization
The purpose of the organization is generally defined as what the foundation strives to achieve. This issue may be general and macro, such as providing better customer service or improving product quality, or more specific and limited, such as increasing market share or reducing costs.
The purpose of the business is usually determined by the foundation’s mission and duties.The mission of the foundation expresses the reason for the foundation’s existence and is the main determinant of the organization’s activities.The goal of the organization must be consistent with its mission and commitments and act in line with the mission of the organization.
In practice, organizations usually have multiple goals that include various factors such as growth and development, profitability, customer satisfaction, value creation for shareholders, innovation and technology, environmental and social sustainability, etc. Choosing and determining the goals of the organization depends on its type, industry and specific conditions.
Also, their goal can be determined based on the organization’s strategies and plans, and all activities and decisions in the organization are made in order to achieve this goal. The purpose of the business plays an important role in its strategy and success, and all the decisions and performance of the organization must be in accordance with this purpose.
Defining the Organization from the Point of View of Grandee
The views of the grandee regarding the definition of the organization can be different. Below is a sample of famous quotes from the grandee about this:
Peter Drucker:
An organization is a social entity that is formed to achieve certain goals and has a structure, processes, and people who reach common goals through cooperation and coordination.
Henry Minsberg:
An organization is like a building that consists of people, processes and resources and is engaged in activities to perform a specific activity or achieve a common goal.
Carl Wigner:
Organization is a complex social system that is formed in order to regulate and coordinate activities and people in order to achieve specific goals.
Mary Parker Folter:
An organization is a set of people, resources and processes that work in order to achieve common goals and achieve the expected results, in the form of a specific structure and using coordination and cooperation between members.
Warren Bennis:
An organization is a living system managed by humans and formed to achieve specific goals. They must have flexibility, efficiency and the ability to adapt to changes.
Peter Sange:
An organization is a social system that is formed to produce products and services, create value for customers and satisfy its stakeholders. They must respond to environmental challenges and have the ability to evolve and progress.
John Cotter:
As a focused and disciplined unit, the organization organizes people, processes and technology to achieve a common goal. The organization must have the power of leadership, flexibility and organizational learning.
Andrew Carnegie:
An organization is a group of people who cooperate and interact to achieve specific goals that are common to each other. The organization should provide an environment where people can experience high productivity, creativity and innovation.
All these quotes refer to the way grandee view the organization and emphasize characteristics such as socialite, common purpose, flexibility, efficiency, ability to adapt to changes, value creation, development and progress, leadership, organizational learning and member interaction.
Terms Related to the Organization
Some terms related to this topic are:
Organization: the process of determining the structure and arrangement of organizational components and assigning responsibilities and tasks within the organization.
Organizational Structure: Organizational model that determines the way of division of tasks, hierarchical relationships and communication within the organization.
Human Resource Management: activities and procedures related to the management and development of human resources in the organization.
Strategic Management: the process of determining and formulating long-term strategies and plans in order to achieve strategic goals.
Organizational Entrepreneurship: the ability to identify new opportunities, create innovation and implement entrepreneurial projects.
Up to Sum
Organizations play a vital role in every society and industry as the basic units for regulating and implementing activities and achieving goals. Its characteristics, including its purpose and mission, organizational structure, resources and abilities, processes, organizational culture, communication system, flexibility and employees, are the things that affect its interaction and functioning.
Each foundation has its own type and characteristics, which are formed depending on different needs and conditions in the society, industry or field of activity. Their types can be governmental, non-profit, commercial, educational and research, service, etc.
Considering its importance and role in society and economy, understanding and examining the characteristics and types of foundations can help managers and business owners to improve their performance and efficiency and face everyday challenges. Stay with the specialists of Uprodemy website to get business advice and international trade.
