What Organisations Are and Why do They Exist - Assignment Example

ORGANISATION According to sociologists, an organization is the planned coordinated and objective action of an individual to come up with familiar tangible product in society (Eldridge & Crombie, 1997). In other words, the action is organised by formal membership and form. An organization may also be a social arrangement that has and pursues common objectives which controls its performance, and which is by a boundary which it from its environment. An organization may therefore be made up of two or more people the maximum number being limitless as long as every member’s specific goal is aligned to what the organisation intends to achieve at a specific period of time (Ferguson & Ferguson, 2000). FEATURES OF AN ORGANISATION There are a number of common features found in every organisation. These include; vision, mission, strategies, values, strategic goals and systems. It is these features that will distinguish one organisation from another in the market. Generally, an organization’s vision is the statement that describes the organization’s desired position in the market. On the other hand, the mission is the purpose of the organisation – the reason for its existence in the market. Strategic goals are the achievements that the members of the organisation wish to achieve as they work toward their mission. An organization’s values describe the culture and personality of the organisation (Black, 2003). In other words, it is the ways that the organisation carries out its activities to attain its strategic goals. Strategies are the approaches that the organisation tends to utilise to attain to its goals and objectives. Organizations in many cases formulated short and long term strategic goals and make plans to achieve them. Yet again, the organization’s structure, systems, procedures and processes describe the specific ways by which the organisation is broken down into sub-divisions or departments and how activities are conducted; all these with an aim of facilitating the attainment of business objectives in general (Black, 2003). Each individual organisation tends to come up with different way of splitting the organisation into divisions with each division having specific duties for that in some way will lead to the attainment of organisational goals. Yet another feature that is characteristic of organizations is the existent of a management structure which determines how positions and functions of the entity are related. In other words, the management structure also defines authority, roles, responsibilities and organizational subdivisions. TYPES OF ORGANISATIONS Three different theories or perspectives exist in respect of the description of an organization; an organization is an entity with a purpose; a permanent functional structure; or an action or task according to Eldridge and Crombie, 1997). Organizations registered within the UK may opt also to conduct their businesses outside the territory. In the United Kingdom, several types of organizations exist. These may be broadly categorised into two: public and private organizations (Dignam and Lowry, 2006). Public organizations are generally those owned and/or operated by the government while private organizations are owned by individuals or groups of individuals. Private organizations may be profit oriented (generally called businesses) or non-profit oriented. Private voluntary organizations in many cases are not-for-profit organizations but may in effect make profits in the course of pursuing non-profit objectives. Depending on the legality and ownership of a business, the organization may be a sole proprietorship, partnership, private limited company or public limited company according to Dignam and Lowry (2006). Sole proprietorships are business organizations owned by individuals while partnerships are owned by two or more individuals under a partnership agreement. Corporations which include private and public companies are by some means limited (Dignam and Lowry, 2006). In other words they exist as legal persons with limited liabilities. Companies such as Anglo American PLC and Anglo Pacific Group PLC due to the fact that they are publicly owned are public companies, for example. Voluntary organizations are generally established with a goal of providing service to the wider society in relation to a specific need usually by volunteers. They are usually not profit- oriented and often receive funding from well wishers and sometimes from government in their pursuit for goals which are generally aimed at making a better society. In the UK, voluntary sector organizations include, among several others, Devon Listens, Johnny Mac Promotions, Sight Zone, Chase and Rotary Club of Tarporley. Just like in other sectors, organizations in the voluntary sector offer a variety of services each of which targets specific needs. EXISTENCE OF ORGANIZATIONS Different organizations exist to engage in different activities and sectors of the United Kingdom’s economy. While some may engage in manufacturing of products such as vehicles, clothes, computers and food products, others engage in the provision of services such as banking, insurance, legal services and telecommunication. An organisation exists chiefly to achieve specific goals as defined by its objectives, vision and mission as it fulfils the society’s needs. An organization may for example exist to make umbrellas which are needed by people for shelter during rainy seasons. CHANGE IN ORGANIZATIONS Organizations in general are interactive and are therefore affected by several environmental conditions (both internal and external) (Lansbury, & Gilmour, 1997). As it interacts with its environment, an organization may experience change. Factors that affect the organization and that may lead to its change include technology, government and its policies, weather, politics, economic seasons, the organization’s management and social factors among numerous others. In other words, the organization’s existence and operations is affected by both macro and micro environments. This really means that when technological advancements are made, for example, the organization may have to remove technologically outdated equipment and replace them with new ones that are probably more efficient, fast and economical in operation and production. The introduction of more advanced machines in an organisation may also lead to retrenchment of staff or recruitment of more educated workers who can be able to use the new machine. Also, when an organization operates using improved information and communication equipment, it tends to perform its functions more effectively. Improving the organization’s systems may therefore lead to greater profitability as less time and resources are spent in the transfer of data. Similarly, change in an organisation’s management may lead to restructuring of the whole organisation including its strategies with an aim of facilitating its effectiveness (Ackroyd & Fleetwood, 2001). A new management may change the management plan and leadership style of the organization. The management may well decide to change strategic goals, and work procedures, processes and methods. Instead of an authoritarian management, the management may adopt a style that favours employee development and increases their satisfaction with their jobs. In response to rising market need, an organization may opt to introduce new products in the market. Depending on market response, a company may make profits or losses which ultimately may change the company’s economic status. With greater profitability, a business organization will probably increase its stock, employ more employees and possibly venture into new markets. The political environment determines a lot how an organization performs in the market. An authoritarian or dictatorial government may easily veto the closure of organizations that it deems counteractive to its existence. Civil unrests could also lead to great losses due to vandalization of equipment and products or lack of the will by potential customers to buy certain products for various reasons. On the other hand, a democratic government that exists in a time of peace and tranquillity may institute measures that may lead to the rapid growth of a particular kind of business. Government policies may be in favour of an organization or may work against it. The imposition, by government, of high excise taxes, for example, may reduce the profitability of a manufacturing company. At the same time change of laws such as those that relate to labour, risk assessments, taxation and registration of businesses may grossly affect the organization’s performance. Economic cycles play a great role in determining how a business organization performs. During recessions, most businesses tend to make lower profits as compared to those they make during booms. The current financial crisis that hit the United States, UK and other countries and territories for example led to a period of great recession. This in effect led to the foreclosure of a number of businesses as their losses were far greater than their net worth. CONCLUSION Generally, an organisation is a collection of individuals intentionally organised to pursue a common set of objectives. An organization may be viewed as an entity with purpose; a permanent functional structure; or as an action or task. Every organization has certain unique distinguishing features some of which include: vision, mission, strategies, values, strategic goals and systems. The organization is usually open to the external environment and is greatly affected by forces both within and outside of it including technology, politics, economic and social factors. REFERENCES Ackroyd, S. & Fleetwood S. (2001) Realist Perspectives on Management and Organisations Routledge. Black, R. J. (2003) Organizational Culture United States: London. Dignam, A. and Lowry, J. (2006) Company Law, Oxford University Press. Eldridge, J. & Crombie, A. (1997) A sociology of Organisations, Routledge. Ferguson, P. & Ferguson, G. (2000) Organisations: A Strategic Perspective St. Martin's Publishers. Lansbury, R. & Gilmour, P. (1997) Organisations: An Australian perspective, University of California Longman. Read More