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- The Definition of Business Organization
- The Meaning of Business Organization
- The Concept of Business Organization Explanation
In order to earning profit, production of goods, produced goods distribution and all activities related to allotment are called business.
For these tasks of business, there are needed many efforts and elements those are land, labor and capital. Absent of any of these, Business process can't be possible.
But, all of these essential elements of business do not stay together. They are spread away at various places.
An business man or entrepreneur needs to collect these. Here we go...Organization or business organization is called the process of adjustment and making equilibrium among those essential elements of business such as land, capital, labor.
Thus, efficiently performing of business activities by collecting elements of production, preservation, adjustment and keeping equilibrium are done by organization.
Therefore, organization or business organization is a very important element for successfully operating business and earning profit.
Various experts have already mentioned their opinions regarding to business organization. Some of those are quoted below.
Koontz and O'Donnel stated as "Organization is a structured relationship by which an enterprise is bound together and the framework in which individual effort is coordinated."
L.H. Haney also said "Organization is a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes."
L.A. Allen quoted as "Organization is the process of identifying and grouping the work to be performed, defining and obligating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives."
Business organization processes the all production, allotment and by these earning profit.
Therefore, by which process in order to gaining profit the respective tasks are taken such as collecting raw materials, building, machinery, capital, employing labor and making these elements coordinated is called business organization.
Some common features of business organization are as follows...
1. It is a structural place in which people work for achieving organizational goal.
2. A business organization operates daily activities for example; managing, marketing, production, selling, financing, employee recruiting etc.
3. A business organization operates its daily activities in order to earn profit.
4. There is existed a designation system from superior to downward in a business organization.
5. A business organization is the combination of responsibility and authority among the employees.
