There are so many organizations around us. Daily we visit and see many organizations like hospitals, colleges, factories, farms and government offices. Mosque/church is also an example of an organization. People go there and say prayers and activities of praying are to achieve a certain goal. Similarly, any unit in which two or more persons are working together for some purpose is called an organization.
The meaning of the word organization is generally divided into two parts; one is human organization and second is material organization. While business is the human economic activity. It involves continuous and regular production and distribution of goods and services with a view to earn profit. Money flowing in and earning of profit through the satisfaction of the customers are the two measuring rods of the success of business.
Business organization is a process or an art of establish effective cooperation between the factors of production (land, material, capital equipment, personnel) for producing or acquiring wealth with a view to earn profit in an enterprise.
The last important thing for any organization is that it requires main pillars of management i.e. POLCA:
1. Planning
2. Organizing
3. Leading
4. Controlling
A manager must perform all theses management functions with assurance.
Organization helps in the efficient use of factors of production and thus reduces cost of production of goods. This helps to attain the goals and objectives of the business at the minimum cost. A good organization provides for the optimum use of technological improvement to create goodwill. All the marketing functions of goods such as buying, selling, transportation, storage, financing, risk taking product standardization and grading, etc are solved by the organization by fixing of responsibilities to everyone.
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