ilearnlot – Explain is, What are 14 Principles of Organization? Meaning of Organization: “An organization or organisation is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment”. A group of people, the structures in a specific way to achieve a series of shared goals. Relationships within an organization are determining by its structure and are typically based on role and function. As the external environment can affect, and affected by organizations, they are considering open systems.