An organization is defined as a cooperative social system involving the coordinated efforts of two or more people pursuing a shared purpose. In other words, when people gather and formally agree to combine their efforts for a common purpose, an organization is the result. For an organizational role to exist and be meaningful to people, it must incorporate, a) verifiable objectives, b) a clear idea of major duties or activities involved and c) an understood area of discretion or authority so that the person filling the roles knows what he or she can do to accomplish goals. It is in this sense we think organizing as a) the identification and classification of required activities, b) the grouping of activities to attain objectives, c) the assignment of each grouping to a manager with authority (delegation) necessary to supervise it, and d) the provision for coordination horizontally and vertically in the organization structure. Thus an organization implies a formalized intentional structure of roles or positions.


According to Edgar Scheming, prominent psychologist, all organizations share four characteristics: 1) coordination of effort, 2) common goal or purpose, 3) division of labor, and 4) hierarchy of authority.

Coordination of effort:

It is normally argued that two heads are sometimes better than one, Individuals who join together and coordinate their mental and ‘or physical efforts can accomplish great and exciting things. Building the great pyramid, sending shuttle to moon –all these achievements far exceeded the talents and abilities of any single individual. Coordination of efforts multiplies individual contribution

Common Goal or purpose: Coordination of effort cannot take place unless those who have joined together to strive for something of mutual interest.

Division of Labor: By systematically dividing complex tasks into specialized jobs, an organization can use its human resources efficiently. Division of labor permits each organization member to become more proficient by repeatedly doing the same specialized task. The advantage of division of labor is well known to all of us.

Hierarchy of authority: According to traditional organization theory, if anything is to be accomplished through formal collective effort, someone should be given the authority to see that the intended goals are carried out effectively and efficiently. Without a clear hierarchy of authority, coordination of effort is difficult, if not impossible, to achieve. Accountability is also enhanced by having people serve in what is often called, in military language, the chain of command.

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