What is " Organization " ?

Updated: Jun 11


In simple words, Organization is the idea of putting things, in some order or style. It may be said that arrangement of things, in the most suitable manner, to reduce the time and the energy.


In the professional world, An organization is a group of people who work together. Organizations exist because people working together can achieve more than a person

working alone.




Louis Allen defines as “Organization is the process of identifying and grouping work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.” In the words of Allen, the organization is an instrument for achieving organizational goals. The work of each and every person is defined and authority and responsibility are fixed for accomplishing the same.




Organizations can be classified into four different types :

  • Sole Proprietorship,

  • Partnership,

  • Corporation, and

  • Limited Liability Company, or LLC.

What form your business adopts will affect a multitude of factors, many of which will decide your company’s future. Aligning your goals to your business organization type is an important step, so understanding the pros and cons of each type is crucial.


Following are some of the advantages of the organization :

  • Improved budgeting and cost management

  • Increased confidence in reading and understanding financial statements

  • Better communication with employees, other managers, vendors, suppliers, and customers

  • A deeper understanding of overall operations

  • New methods to assess marketplace issues and develop competitive strategies

  • provides a sound foundation for effective managerial control.





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