What is an organization?

Organizations arose quite a long time ago and over time became more complex, expanded and became increasingly important in the life of human society. In its simplest sense, an organization is a group of people acting to achieve a common goal. For their successful functioning, the activities of the group must be coordinated.

Instruction manual

1

Thus, an organization is an association of people whose activities are deliberately coordinated to achieve a certain goal. Organizations can be formal and informal. Formal organizations have the right of a legal entity, the goals of their functioning are fixed in the constituent documents, and the order of activity is in normative acts that regulate the rights and obligations of each participant. Formal organizations are commercial and non-profit. The goal of the former is to make a profit. Non-profit organizations do not have as their main goal profit. Informal organizations are groups of people that arise spontaneously, whose members interact with each other.

2

In economic science, organization is understood as only formal organization. An organization may have not one goal, but several. Their implementation is ensured by the coordinated functioning of its individual parts. The key goal of any organization, without which its existence is not possible, is its own reproduction. If this goal is suppressed by the organization, then it can quickly cease to exist.

3

In the process of functioning, the organization uses the resources that it transforms to achieve the desired result. As part of the resources allocated human resources, capital, material resources and information.

4

The organization is closely connected with the external environment, since it receives resources from it. In addition, in the outside world there are consumers of goods and services produced by it. The external environment of the organization is quite diverse. It includes economic conditions, consumers, legislation, competitors, public opinion, technology, etc. In this case, the external environment is practically not influenced by the organization. In this connection, the leaders of the organization have to consider the impact of these factors on its activities.