The term “Organisation” is one of the many standard terms used in business environments daily. However, many people fail to define these terms. We all have been a part of an organisation at some point, whether it is our school, college, or the workplace. The most common example of an organisation is ? our family. Family is the most basic example of an organisation.
In this article, to learn what an organisation is, the definition of an organisation, and the meaning of an organisation.
Table of Contents
Definition of an Organisation
An organisation can be defined as an entity or a social unit that comprises several people who work together to achieve a common goal. It is a structured unit where the role, responsibilities, and authorities of each member are clearly defined, and relationships between all the members of the organisation are established.
What is an Organisation?
An organisation is an organised structure designed to achieve the common goals of the organisation or to perform day to day duties in harmony and with discipline. In an organisation, a group of people work together to achieve a common purpose.
An organisation can be of different types. It can be a small organisation created to perform temporary work such as the work of distribution of food among the homeless, or it can be a full-fledged organisation to perform repetitive work or long-termed work.
There can be different types of legal organisations such as governments, non-governmental organisations, corporations, international organisations, political organisations, non-profit corporations, charities, armed forces, educational institutes, cooperatives, and partnerships, etc.
Types of Organisations
The organisations can be divided into different types based on their structure and the kind of work performed in them. Let us learn about them one by one.
1. Hybrid Organisation
A hybrid organisation is an organisation which is an amalgamation of both public and private sector. That means the hybrid organisation operates in both private as well as in the public sector. For example, a national bank is an example of a hybrid organisation as it performs all general duties and performs all commercial activities to develop the business.
2. Voluntary association
A voluntary association is an example of an organisation that is formed of people who voluntarily become part of the organisation. A voluntary organisation operates without any legal formalities. The people who are part of the organisation have one common goal in mind, and all of their actions are directed towards achieving these goals. The objectives of the voluntary association are mentioned in the form of a mission statement, manifesto, or any informal manner.
3. Legal Organisation
The legal organisation is a type of organisation which is created as per the government rules and laws. Most of the organisations such as banks, post offices, educational institutes, hospitals, or any corporate Organisations are examples of legal organisations. In a legal organisation, the roles and duties of members of the organisation are clearly defined, and each member is hired by following a proper process of recruitment. Most of the organisations in an economy are legal organisations.
4.Secret societies or criminal Organisations
This type of organisation operates to perform illegal or kind of criminal activities. These organisations are not formal and are not formally registered. The recruitment of people in such an organisation is done by those people who associate with the goal or purpose of the organisation. The following are the four things that are necessary for the existence of these organisations such as
- A leader of the organisation.
- The goal or purpose of the organisation.
- Members of the organisation and communication between them.
- The action involved performing the task.
An example of this type of organisation is a terrorist organisation.
Example of Organization
An Organisation is a formally structured group of people who are legally bound together to perform certain types of work. Let us understand the meaning of an Organisation with the help of an example of a school. A school is an example of a formal organisation. The goal of a school is to impart education to students studying in the school.
There are various members in a school such as a headmaster, headteacher, and teachers of different subjects. Each of these members has different roles to perform in the school. For example, the headmaster of the school is responsible for maintaining law and order in the school. He is responsible for hiring well-qualified teachers in the school and deciding their salaries and fee structure in the school. All teachers and students are required to follow the rules agreed by the headmaster of the school. Similarly, headteachers are designated to manage the different departments in the school. A school works without conflicts and in harmony because each member of the school has assigned roles and duties.
Structure of an Organization
Now let us learn about the different types of structure of an organisation. The organisation structures can broadly be divided into four categories.
1. Ecologies
This structure of the organization behaves like the natural ecological system. There is internal competition among the members of the organisation, and the members who will perform better will be awarded better and vice versa.
2. Committees and juries
Committees and panels are a group of people who are selected to achieve a specific type of work. For example, the committee members can make a decision by the voting system. On the other hand, the members of a jury are people who make important decisions by mutual discussion. This type of structure of an Organisation can be permanent or temporary.
3. Pyramid or Hierarchical
This structure of an Organisation is prevalent. There is one leader in the Organisation who leads all the members working in the Organisation, and each member working in the Organisation has a particular role to play.
4. Matrix Organisation
The structure of this type of organisation is quite similar to its name. Each member of the organisation has two bosses. The responsibility of one employee will be to provide training to the employee, and the responsibility of the other boss is to measure the work performance of the employee.
Are you looking to understand the key elements of an organization?
Practical Advice: When structuring your organization, clearly define roles and responsibilities. A study published by the Harvard Business Review in 2021 highlights that clarity in roles improves productivity by up to 25%. Leaders should ensure that every team member understands their unique contributions and how they fit into the larger organizational goals, thus fostering accountability and a sense of purpose across the board.
Updated Industry Insights: Recent data from Deloitte’s 2023 Human Capital Trends report indicates that 79% of business leaders are focusing on redesigning their organization to streamline operations and enhance agility. This trend underscores the importance of flexible organizational structures that can quickly adapt to market changes, placing emphasis on cross-functional teams and network-based models rather than traditional hierarchical ones. Integrating new communication and collaboration tools can further enhance these modern organizational frameworks, supporting seamless coordination and innovation.
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