Business Organization - Explained
What is a Business Organization?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is an Organization?
An organization is a group of two or more individuals and the coordinated allocation of resources around a common goal or objective.
Back to: Business Management
Characteristics of an Organization
The elements that distinguish an organization from a loose association of individuals are as follows:
- People - All organizations require human members. While the organization will likely have other forms of resources, such as capital and equipment, the involvement of human beings is essential.
- Distinct Purpose - The members of the organization collaborate to achieve a distinct purpose, such as the purpose laid out in the mission statement. The organizational purpose generally includes the accomplishment of tasks or obtaining the desired result.
- Deliberate Structure - The organization has a structure that is commonly recognized and adhered to by all members. An organization may assume a legal business entity status that controls its organizational structure.
In most organizations, the individuals within the organization will allocate duties or work functions among the members.
It is the efficiency associated with the allocation of work functions that makes an organization more efficient and effective than the members could be individually.
Managers are a the forefront of the Planning, Organizing, Leading, and Controlling functions that give rise to an organization.