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What is Organization?

It doesn’t mean that a random group of people who come together by chance is an
organization. When a group of people are formally gathered to accomplish some
certain goals is called an organization. The goals cannot be reached individually, so
that organizations are formed. The job of a manager is to achieve high level of
performance relative to organizations’ objectives. For example, any business
organization has some objectives which lead to 1) make profit; 2) provide goods
and services to customers; 3) provide income source for its employees; and 4)
increase the level of satisfaction for every stakeholder.

Organizations are known as social entities, which are deliberately structured and
goals oriented. Organizations cannot operate their functions in isolated
environment, but they linked external dynamic situation.

Types of organization

Generally there are two types of organizations:

1. Formal: The part of an organization that has legal and official recognition.
2. Informal: The informal or private part of the organization.

Components of Organization:

1. Task
2. People
3. Structure
4. Technology

Task: It can be defined as a purpose of existence of an organization. Every

organization should have a purpose of existence that is accomplished by producing
output in the form of certain goods and services, is termed as task.

People: It is the workforce or human part of the organization that performs

different functions in the organization.

Structure: The basic arrangement of people in the organization is called Structure.

Technology: To transform inputs into products or services, the intellectual and
mechanical processes used by an organization is known by technology.

Major Functions of Organization:

1. Operation

2. Finance

3. Marketing.

An operational function in the economy represents defined an area of responsibility

and giving up within an operational organisational structure.

Classical operational functions are under other:

• Management
• Financial accounting
• Personal
• Selling
• Treatment of customer orders
• Production planning
• Purchase
• Progressing
• Production
• Dispatch
The Finance function consists of the people, technology, processes, and policies that

dictate tasks and decisions related to financial resources of a company. Depending on the

organization and the industry in which it operates, this function may be simple or complex.

Some finance functions are overstaffed that is, they rely on individuals to perform both

advanced and simple tasks while others are highly automated relying on people for decision

making and policy setting exclusively. Regardless of the ratio of people to technology, the goal

of the finance function is to serve the organization's financial/accounting needs while laying a

platform for the future. This means handling clerical tasks, providing information to the

organization, and setting financial policies and strategies that will serve the company in the

future. To succeed in these three broad areas, the small and emerging business must be

prepared to develop a finance function that both suits its needs and can adapt to the growth and

changes of the business. The first step is to develop an adequate finance function. To do this, it

is important to understand the component parts.

Marketing is a diverse field and it performs major functions for the organization. Marketing

aims to identify and satisfy customer needs, it connects the customer needs with the firm’s

production function. Its major role is to estimate the demand. All these aims and objectives can

be translated into four important functions of marketing. The first one is exchange function, in

which it performs the buying or raw materials, selling of goods and pricing the products. The

second one is the physical function in which the actual assembling of the goods takes place,

storage, transportation, packaging and standardization takes place. The third major function is

the facilitating function as it collects information that is used by other divisions of the

organization, creates demand and carries out research.

Operatio Finance

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As a company grows, no one person can do everything. There are different

areas of activity that take different styles or knowledge.
Production management is mainly in manufacturing companies with
technical and skill focused jobs organized under one branch to be experts on
how to make the product.
Operations management is a little more general, and usually includes
Production, Warehousing, Shipping, Purchasing, Maintenance, Manufacturing
Engineering, and Planning.
Human Resources, and often Quality Management are separated to retain
auditing functions. They deal directly with the people and product issues that
are sometimes at odds with the purpose of Operations.
Sales and Marketing are usually lumped together into a group that focuses
on maintaining and attracting customers to the company's products and
Finance ties all departments together with monetary measurements that
tell whether the company is making money. They also regulate the
acquisition of funds to keep the business on an even keel, and investing
money received wisely.
Other groups might be Research, Transportation, Information Services,
Security, Medical, Government Relations, Service, Outsourcing,
Training, and other specialties when that function is importaint enough to
have someone focusing on making sure it is done well.