Archive for June 12th, 2008

Purpose of organization in a business

Posted in Business on June 12th, 2008

Organizations have highly specific purposes. A school is set up for the purpose of educating students; A government bureau is set up to provide specific services to its citizenry; a firms purpose is to produce and market goods and services.

Specificity of purpose varies between and among organizations,. Some conglomerates put no limitations of the kind of goods and services they may do business with.

Organizations not only have specific purpose but they are organized to achieve these- hence the programmed activities. In a firm for example, raw materials are purchased, processed, and marketed to earn the firm a profit. Machinery is acquired, repaired, overhauled periodicaly for the same purpose. This specificity of purpose and of the means by which these purposes are attained is a visible and important characteristics of organizations.