Definition of Organization

University of Mindanao
Matina, Davao City
Definition of Organization
Che 537 – Engineering Management
Submitted by:
Quenne A. Belocura
BS ChE – 4
Submitted to:
Engr. Jay Carlo Aguilar
Instructor
August 24, 2018

Topic: Definition of Organization
Objectives:
At the end of the discussion, the students will be able to:
1. Know the meaning of Organization
2.
What is organizing?
According to Louis Allen, “Organizing 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 together in accomplishing objectives”.
According to Theo Haimman, “Organizing is the process of defining and
grouping the activities of the enterprise and establishing authority relationships among
them”.
What is Organization? What is/are the Roles of Organizations in Society?
An organization is a set of people working together in a coordinated and structured
manner to achieve one or more goals.
Organizations exist to allow accomplishments of work that could not be achieved
by people alone. As long as the goals of an organization are appropriate, society will
allow them to exist and contribute.
Organizations are strongly influenced by the people that form as part of them. It
can take in part of the personality of the people within them and their attitudes,
perceptions and behaviors, and can affect how an organization works.

Organizations use management to accomplish the work that is required to achieve
goals.
The Nature of Organizational Environment
1. The external environment is everything outside an organization that might
affect it.
2. The internal environment consists of conditions and forces within the
organization.
1. The External Environment
The external environment is composed of general and task environment.
The general environment is the nonspecific dimensions and forces in its
surrounding that might affect its activities.
The task environment consists of specific organizations or groups that are likely to
influence an organization.
Dimensions of General Environment
 The economic dimension refers inflation, interest rates, unemployment, and
demand.
 The technological dimension refers to the methods available for converting
resources into products or services.
 The socio-cultural dimension refers to customs, mores, values, and
demographic characteristics of the society in which the organization functions.
 The political-legal dimension refers to government regulation of business and
the relationship between business and government.

 The international dimension refers to the extent to which an organization is
involve in or affected by business in other countries.
Task Environment Actors
 Competitors are other organizations that compete for resources.
 Customers are whoever pays money to acquire an organization's product or
service.
 Suppliers are organizations that provide resources for other organizations.
 Regulators are units in the task environment that have the potential to control,
regulate, or influence an organization's policies and practices.
2. The Internal Environment
It is composed of elements within the organization. The employees, board of
directors and culture.
A board of directors is only required of organizations that are incorporated;
however, many other firms have them. The board of directors is elected by the
stockholders and is charged with overseeing the general management of the firm to
ensure that it is being run in a way that best serves the stockholders' interests.
When the organization's employees hold the same values and goals as its
management, everyone wins. However, when managers and employees work toward
different goals everyone suffers. The composition of the organization's employees is
changing, and managers must learn how to deal effectively with these changes.
The culture of an organization is the set of values that helps its members
understand what the organization stands for, how it does things, and what it considers
important.
A strong organizational culture can shape the firm's overall effectiveness and long-
term success and help employees to be more productive.

References
Griffin, Ricky W. (2001). Management, Seventh Edition. Texas A&M University.
The Internal Environment. In Cliffnotes.com. Retrieved from

https://www.cliffnotes.com/study-guides/principles-of-management/managerial-
environments/the-internal-environment.
Defining Organization. In Lumenlearning.com. Retrieved from

https://courses.lumenlearning.com/boundless-management/chapter/defining-
organization.

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University of Mindanao

Matina, Davao City

Che 537 – Engineering Management

Engr. Jay Carlo Aguilar

August 24, 2018

At the end of the discussion, the students will be able to:

1. Know the meaning of Organization

According to Louis Allen, “Organizing is the process of identifying and

grouping the work to be performed, defining and delegating responsibility and

most effectively together in accomplishing objectives”.

According to Theo Haimman, “Organizing is the process of defining and

What is Organization? What is/are the Roles of Organizations in Society?

An organization is a set of people working together in a coordinated and structured

manner to achieve one or more goals.

Organizations exist to allow accomplishments of work that could not be achieved

allow them to exist and contribute.

perceptions and behaviors, and can affect how an organization works.

The Nature of Organizational Environment

1. The external environment is everything outside an organization that might

2. The internal environment consists of conditions and forces within the

1. The External Environment

The external environment is composed of general and task environment.

The general environment is the nonspecific dimensions and forces in its

surrounding that might affect its activities.

Dimensions of General Environment

 The economic dimension refers inflation, interest rates, unemployment, and

 The technological dimension refers to the methods available for converting

resources into products or services.

 The socio-cultural dimension refers to customs, mores, values, and

demographic characteristics of the society in which the organization functions.

 The political-legal dimension refers to government regulation of business and

the relationship between business and government.

involve in or affected by business in other countries.

Task Environment Actors

 Competitors are other organizations that compete for resources.

 Customers are whoever pays money to acquire an organization's product or

 Suppliers are organizations that provide resources for other organizations.

regulate, or influence an organization's policies and practices.

2. The Internal Environment

It is composed of elements within the organization. The employees, board of

directors and culture.

A board of directors is only required of organizations that are incorporated;

different goals everyone suffers. The composition of the organization's employees is

term success and help employees to be more productive.

Griffin, Ricky W. (2001). Management, Seventh Edition. Texas A&M University.

The Internal Environment. In Cliffnotes.com. Retrieved from

Defining Organization. In Lumenlearning.com. Retrieved from

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