What is an Organization?

An organization or organisation (see spelling differences) 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.

The word is derived from the Greek word organon, which means “organ“.

  • An organized group of people with a particular purpose, such as a business or government department.
  • The action of organizing something. And the quality of being systematic and efficient.
  • The way in which the elements of a whole are arranged.

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Basic Definition of Organization:

  • Basically, an organization in its simplest form (and not necessarily a legal entity, e.g., corporation or LLC) is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can range in size from one person to tens of thousands.
  • There are several important aspects to consider about the goal of the business organization. These features are explicit (deliberate and recognized) or implicit (operating unrecognized, “behind the scenes”). Ideally, these features are carefully considered and established, usually during the strategic planning process. (Later, we’ll consider dimensions and concepts that are common to organizations).

Definition of Organization:

A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems they affect and are affected by their environment.

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