What is an organization?

We explain what an organization is and what types of organizations exist. In addition, how are their structures, objectives, sizes and more.

  1. What is an organization?

An organization is a social system , formed in order to achieve the same common goal . Like any system, it can have internal subsystems that have specific tasks assigned.

The organization, a word that derives from the Greek ” organon “, consists of a group of people focused on a common goal to achieve . This organization can only function and be real if, among the people who compose it, there is communication and the intention to act in coordination towards the goals or objectives to be fulfilled. Standards are set, which the organization adopts and helps achieve the mission .

It is very important that organizations have certain resources to achieve the objectives set in the most satisfactory way. These can be economic resources, human resources, technological resources, real estate, natural or intangible resources.

Organizations have specific characteristics. In order to function, the human group must establish explicit and clear rules, provide a certain degree of formality and present recurring behaviors . Basically, organizations are an order that occur in a given time, space and culture . With their view on a specific objective, they are created at a specific time point, creating consequences in the environment .

As the great feature of organizations is order, its members are ordered hierarchically , establishing norms and rules, all aimed at the intended objective. Organizations create power, possess it and transmit it. They not only generate work, but also generate their own culture . Through its symbols, images and its prestige, a path is created by which knowledge is initiated, preserved and reproduced .

  1. Types of organizations

Organizations can be for profit ( business ), nonprofit ( NGOs ) or for mere administrative, representation, solution or service purposes (government agencies).

NGOs (meaning Non-Governmental Organizations ) or also called civil organizations, are social groups whose purpose is to meet community needs . Some examples of these organizations are clubs, political parties or unions , among others.

With regard to NGOs, it is important to highlight that there are millions of them working for objectives related to social good. Its main characteristic is its financial independence, being thus that they do not depend on any government; In addition to that they are also characterized by the tireless pursuit of equal opportunities.

Some examples of the objectives of these organizations are:

  • Help the environment
  • Promote citizen participation
  • Scientific investigation
  • Improve working conditions
  • Child protection
  • Senior Protection
  • Community help

On the other hand, government organizations do depend on a government and, in fact, are created by it. Those that are created for social purposes can point to the same objectives as NGOs, the difference is economic financing.

As for the structures of organizations, we only have two types to differentiate: on the one hand, the:

  • Formal organizations , which deliberately attempt to establish a pattern of relationships between their components, which will lead to the effective achievement of the objective, and on the other hand,
  • Informal organizations , which arise spontaneously in the activities and interactions of the participants.
  1. Size and location of an organization

There are local, national, multinational, global and international organizations.

Organizations have different sizes. They can be great, if they have between 200 and 1000 workers ; medium, if its employees are composed between 50 and 199 people; small, those that have between 10 to 49 workers , and finally, the micro enterprises , which are those that only have 9 or less workers.

Now, observing the location of the organization, we can distinguish different characterizations, such as local, national, multinational, global and international. This classification depends on the reach of the company or NGO, whether only in one city , throughout the country, in several countries or in the entire world.

As we have seen, roughly, organizations have goals that generate profits or not. Therefore, there is a production classification for the former. Organizations can also be classified as producers of goods, services, wages and salaries, or distribution.

However, there are also many classifications of organizations according to their characteristics, which can be owned (if they are private or public), they can be classified depending on the degree of integration they have (fully integrated, partially integrated or formal), depending on the attitude they present against changes (if they are rigid or flexible), depending on the decision-making process (if it is centralized or decentralized) or by its hierarchy (hierarchical or network organization)

  1. Conclusion on the term organization

Organization, word derived from the Greek “organon”, as we had already stated at the beginning of this text , also means instrument , utensil , organ or that with which one works. In general, beyond the classifications we have already listed, organizations are voluntary agreements between people who develop a specific task , forming a system and obtaining benefits for it.

Whether we talk about event organization, school organization, business organization, domestic organization or the organization that comes to mind; In all of these, the concept of them is developed in such a way that people interact and interact, orderly and dividing tasks , establishing work and coexistence standards , all to pursue pre-established goals in advance in business planning.

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