Meaning and Scope of Organization

What is Meaning and Scope of Organization?

In this post we learn about the Meaning and Scope of Organization. Organizing is the basic function of management. The term organization means different things to different people. It is us widely to mean a structure of relationship, a process, a group o people, and a function of management.

However, organization refers to identification and grouping of activities, assigning the activities to individuals, and establishing authority-responsibility relationship among them.

Thus, organization is related to the determination of organizational structure and division of activities By organizing, a manager brings the manpower and material resources together for achieving the goals of the enterprise (organization).

An organization, as a group of people contributes their efforts towards attainment of common goals. In management the word organization is popularly used in two senses:

  1. as a structure, and
  2. as a process.

These two concepts are explained below:

(1) Organization as a Structure


Organization as a structure is a static concept. It is merely a structure of relationship, between various positions of the organization. It is a structural framework of duties and responsibilities through which an organization functions.

It is an established pattern of relationship among the components of the organization. It is a blueprint of how management likes to perform the various functions. It is the mechanism through which management directs, controls and coordinates the activities of the enterprise.

According to Kooniz and O’Donnel, “Essentially, it enterprise (organization) is the creation and maintenance of an intentional structure of roles” From this perspective, organization is a structure of framework. It is only a chart showing the relationship between positions of the enterprise.

The horizontal line of the chart various ides the activities among various departments. For example, marketing, personnel, finance department, etc.

The main purpose creating organization structure is to allocate authority and responsibility among flow in the enterprise. The organization structure looks like pyramid with a narrow top and a broad bottom. the staffs. The structure facilitates work.

2) Organization as a Process


Organization as a process is a dynamic concept. This is the most acceptable concept of organization. As a process, it determines, arranges, groups and assigns the activities of the enterprises to achieve the common goals.

According to Stoner (1996)

“Organizing is the process of arranging and allocating work, authority and resources among an organization’s members so they can achieve organizational goals“.

In the words of Louis A. Allen, “Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively in accomplishing objectives”.

Hence, organizing is a process of grouping tasks, assigning duties, establishing authority and allocating resources to achieve planned goals Effective organization can provide a number of benefits First, the process of organizing helps to clarify the specialized tasks and performance expectations for each person.

Second, it produces appropriate authority structure with accountability to support planning and control throughout the organization.

Third, it creates channels of communication that support decision-making and control. Fourth, the organizing process establishes a logical flow of work that can be comfortably performed by individuals and work groups.

Fifth, it develops a division of labor that avoids the misuse of resources, conflict, and duplication of effort.

Sixth creates coordinating mechanisms that produce harmony among organizational members in diversified activities. Final organizing, produces focused work efforts that are logically efficiently related to a common goal.

From the above analysis it is clear that organization consists of identification and grouping of activities, defining responsibility delegation of authority, establishing authority-responsibilit relationship and coordinating interrelated activities.

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