Organization - Term Overview

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An organization is a defined system to achieve certain objectives. These systems can be made up of other linked subsystems that perform specific functions. It can also be defined as a social group made up of people, tasks and administration, which are related to each other within a systematic structure in order to achieve goals.

It must be clarified that an organization can only function when there are individuals who communicate and intend to act in a coordinated way to achieve its purpose. The entities or companies work through a series of rules that have previously been established for the fulfillment of the objectives.

Organization concept

For these organizations to be able to carry out the tasks entrusted to them and to achieve the goals set, they must have sufficient resources, be they technological, human, natural, real estate or economic.

In the economic sphere, the organization of companies refers to the organizational structure of work. There are different elements that are key in this chain, such as job specialization, departmentalization, bureaucracy and decentralization, among other things.

A definition of business organization can be the orderly arrangement of resources and functions that are considered appropriate for the fulfillment of the objective. This refers to the establishment of a structure for the rational systematization of resources by means of the grouping of activities, arrangement and hierarchies.

The objective of the organization is the coordination and optimization of activities, so that everything is easier for customers and workers.

To better understand this definition, we must talk about organizational examples, which will depend on the type of company:

  • Sector: primary (agriculture, fishing, mining, livestock), secondary (construction, industry) or tertiary (transport, health, education, hospitality, commerce).
  • Legal form: autonomous or individual entrepreneur, commercial companies such as public limited companies or limited companies.
  • Ownership of the company: public, private or mixed.
  • Size: small and medium-sized companies (SMEs) or large companies.

Consult all the information about the importance of the organization in the company and the principles by which the business organization should be governed.

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