What is Organization?

In business management, we come across many terms like the division of labour, centralization, decentralization and many more. The organization is one among them and also one of the most important ones. If you are looking for information about what is organization then let me tell you that you have been landed on the right website.

Because in this article of mine, I will tell you everything you need to know about the organization. Including meaning, definition, and functions.

So now without wasting much of your time let us get started with the article.

What is Meaning of Organization?

What is Organization

Organization refers to the identification, classification of available activities. Grouping of activities is necessary to achieve the objectives of the business firm. Assignment of each activity to a manager with authority, responsibility with the provision of coordination is called as the organization.

Definition of Organization

The identified group of people contributing the efforts towards the attainment of goals is called as organization.

Functions of Organization

Now we know the definition and the meaning, so now let us check out the functions and they are as mentioned below.

Determination of activities.

This includes deciding on the activities and division of various activities which are required to achieve certain objectives. The entire work should be divided into various parts of the organization.

Grouping of activities.

The next function is the similar activities are grouped under a single department. For example, the activities like the advertisement, promotion are grouped under marketing department and so on.

Allotment of duties to the specified person.

Now the duties which are to be performed should be allocated to the right person based on the skill and the qualification. For example, the sales works should be allocated to a sales manager.

The delegation of authority.

After allocating the work to the employees it is very important to delegate the authority. Because without the authority it will be very difficult for the employee to do that job. You can read more about the delegation of authority by following this link.

Defining Relationships.

When a group of people is working in a place for attending of common goal it becomes necessary to define the relationship among them in prior terms. If this is done then each and every employee will be aware of their responsibilities and role in the organization.

Characteristics or Nature of Organization

The below mentioned are the characteristics which you should know about.

  • It provides the division of labour.
  • It helps to bring coordination between the departments and employees.
  • It helps in effective communication.
  • It brings a good authority and responsibility structure.

Importance of Organization

We have discussed the meaning, definition, functions and also characteristics so now let us check out the importance as well.

  • It facilitates administration.
  • Assurance of optimal utilization of available resources.
  • It helps in the adoption of new technology.
  • It helps in bring coordination.
  • It helps in specified training and development of employees.


So this was all about what is organization which you need to know. We have almost covered everything like meaning, definition, functions, characteristics, and importance. I hope you are clear with all the information mentioned in this article. If you have any kind of doubts then you can comment down below.