Definition of Organization

There is no universal definition of an organization as definitions are based on the essence and context in
which organization is sought to be defined. Many sociologists have given numerous definitions of
organization, some of which will be espoused herein. According to William Spriegel, organization in its
broadest sense refers to the relationship between the various factors present in the given endeavor.
Factory organization concerns itself primarily with the internal relationships within the factory such as
responsibilities of personnel arrangement and grouping of machines and material control. From the
standpoint of enterprise as a whole, an organization is a structural relationship between various factors
in an enterprise.

Collins dictionary of Sociology defined organization is “A type of collectivity established for the pursuit
of specific aims or goals characterized by a formal structure of rules, authority relations, a division of
labor and limited membership or societies. Eliott and Merrill further defined thus, “organization is a
state of being, a condition in which the various institutions in a society are functioning in accordance
with their recognized or implied purposes”. H.M Johnson said, “organization refers to an aspect of
interaction systems”. Furthermore, Ougburn and Nimkoff defined organization as an articulation of
different parts which perform various functions; it is an active group device for getting something done”.
Duncan Mitchell also explained social organization as, “the interdependence of parts, which is an
essential characteristics of all enduring collective entities: groups, communities and societies 1

In the light fonthe various definitions given by different sociologists above, an organization, in a nutshell
is a collection of people who with consciously coordinated efforts pursue and contribute to the
attainment of a common purpose. An organization may also be defined as a social and economic entity,
in which a number of individuals perform a variety of tasks in order to reach a common objective. They
come together with a purpose and have an objective in mind as to what to achieve. A broad definition of
an organization could be said to be that of any purposeful arrangement of social activity that implies
active control over human relations ordered for particular ends.

IMPORTANCE/PURPOSE OF ORGANIZATION

The purpose of an organization is accomplished by a collection of people whose efforts or behavior are
so directed that they become coordinated and integrated in order to attain the objectives of the
organization.

The following are fundamental points to emphasize the importance of organization 2:

 Optimization of resources: Organizations facilitate the optimum use of human and financial
resources. It helps assign jobs to the right employees and prevents duplication of work. This
ensures that resources and efforts are not wasted.

1
Social Organization by Mr. Arvind Sirohi, pg 3&4.

2
https://www.keka.com/glossary/organization
  Effective administration: A good organizational structure helps with daily operations and long-
term strategies. It helps employees understand how the company works. It clarifies job roles,
avoids duplication and waste, and makes administration easier.
 Improves business stability: An organization promotes stability by establishing clear processes
and structures. It reduces confusion, ensuring smoother operations and adaptability. It
enhances team collaborations, open communication, and effective leadership strategies to make
businesses more stable.
 Promotion of individual specialization:: An organization contains a diverse range of employees.
Its structure allows for focused roles and expertise. It empowers employees to develop
specialized skills and maximize productivity.
 Fosters growth and development: An organized structure facilitates scalability and resource
management. It supports strategic planning and continuous growth. Continuous growth makes
way for organizational change, which is fundamental in expansion and development.
 Supports a sense of culture: An organization develops a sense of culture tied to its people. It is a
collection of shares values and beliefs that holds the organization together. This organizational
culture forms the backdrop of communication and collaboration across teams focusing on the
ultimate goals and objectives.

CHARACTERISTICS OF AN ORGANIZATION

An organization refers to the structure and arrangement of resources, processes, and individuals within
a company or group. It is characterized by several important features. Embodying these characteristics
can help streamline operations, enhance productivity, and ultimately achieve their goals efficiently and
effectively.

 Clear Structure: A well-organized entity has a clearly defined structure that outlines roles,
responsibilities, and reporting lines. It establishes a hierarchy and establishes the flow of
information and decision-making.
 Division of Labor: Organization involves dividing tasks and responsibilities among individuals or
teams based on their skills and expertise. This division of labor ensures that each person focuses
on their specific area of competence, leading to increased efficiency and productivity.
 Coordination and Communication: Effective organization requires seamless coordination and
communication between different departments, teams, and individuals. It ensures that
everyone is on the same page, working towards shared goals, and exchanging relevant
information in a timely manner.
 Specialization: The organization allows individuals to specialize in their respective areas,
leveraging their expertise to deliver high-quality results. This enhances efficiency and
encourages professional growth enabling companies to tap into the full potential of their
workforce.
 Standardization: Organized entities often establish standardized procedures and policies. This
ensures consistency and uniformity in operations, leading to improved quality control, reduced
errors, and better customer experiences.
  Flexibility and Adaptability: While the organization provides structure, it also allows for flexibility
and adaptability to changing circumstances. A well-organized entity can adjust its strategies,
processes, and resources to respond to market dynamics and evolving business needs.

FORMS OF ORGANIZATION

There are various forms of organization and they may be classified into formal, informal and total
organizations. These will be defined as follows:

A. Formal Organizations

Formal organizations are social systems with well-defined authority structures and explicit rules and
goals. Since these organizations are formed to achieve specific purposes, their structure defines the
division of labor and delegation of authority among organizational stakeholders. They operate within
pre-defined plans, procedures, and policies, which inform most decisions. The primary purpose of
constituting a formal organization is to facilitate the attainment of specific objectives through stepwise
fulfillment of laid down departmental objectives. Also, formal organizations are critical in forging a
systematic and smooth flow of activities with a well-defined chain of command and interrelations across
different departments

.A formal organization is a type of group that is deliberately constructed and whose members are
organized to achieve a specific goal. Formal organizations with explicit rules and procedures intending to
realize specific targets are a common feature of today's modern society. The ubiquity of these large
secondary groups follows Max Weber's recognition that complex societies will increasingly rely on
rational decision-making techniques rather than traditional beliefs and customs to accomplish various
goals. It implies that as societies become more complex, they adopt impersonal rules to sustain their
activities. Weber emphasized that formal organizations are essential for societies to achieve complex
objectives in the most efficient ways. Today, every sector of society has formal organizations ranging
from public to private and non-governmental institutions.

The characteristics of a formal organization include but are not limited to having a deliberate division of
labor and power. Existence of a written set of rules, policies, and procedures with a system for replacing
members. It focuses on the structure of relationships amongst people for the attainment of a common
objective. The structure of relationship herein is depicted through lines and boxes on the organizational
chart.

B. Informal Organizations

Keith and Newton defined an informal organization as "a network of personal and social relations not
established or required by formal organization, but arising spontaneously as people associate with one
another". Such organizations are unplanned and unofficial with it's function being to meet needs that
are not or cannot be met in a formal organization. Informal organizations are often essential for building
relationships and support systems among staff members thus one can say an organization mostly
consists of a combination of formal and informal organizations.
Informal organizations are social structures that provide direction for how people work together in the
workplace or other environment. Informal organizations represent the cluster of personal and
professional connections and norms that give structure to how teams complete projects and tasks and
build relationships at work. Typically, they aren't public-facing entities, but are instead a type of dynamic
within a work setting that supports personal relationships, communities that share common interests
and social networks. Informal organizations also provide motivational and emotional support to
members who are involved or affiliated with them. They also provide a way for individuals to collaborate
across teams, foster innovation and enable teams to solve problems outside of traditional structures
and processes of more formal organizations.

The characteristics of the organization are that it provides more opportunities for flexible
communication, supports social and cultural values, allows people to be more responsive to changes
and allows for greater focus on individuals.

C. Coercive/ Total Organization

This refers to a formal organization where membership is not voluntary, and control is not based on
consensus. Membership is forced, and leaders use force to achieve control. While prison is an epic
example of coercive organization, other institutions such as military units also qualify to be in this
category.