Chapter 4 » Concept and Meaning of Organization | Business Studies – XII

Concept and meaning of organization

There are so many materials and people in an enterprise. Enterprise uses the manpower and materials for achieving the goals. Materials can be collected, established and coordinated. Manpower must be hired, trained, motivated and put at right place. Managers and workers must be clear about their authority and responsibility.  Organization is defined as the determination of relationship between materials as well as human resources. It is most important and basic function of management. It includes division of work, coordination of people and appropriate establishment of materials and resources. Therefore we can say that organization is necessary function of management. Without it a business firm can’t move ahead. In short organization refers to a mechanism which enables man to live together and perform the activities collectively. It is the foundation on which the whole structure of management is built.