- They satisfy social needs. People join organizations because they consider that they will be more secure, more successful, have more needs and wants satisfied and be better off.
- Organisations exist primarily because they are more efficient at fulfilling needs than individuals. The main reason for this is the ability to employ the techniques of specilisation and the division of labour.
Specialisation occurs when organizations or individual workers concentrate on a limited type of activity. This allows them to build up a greater level of skill and knowledge than they would if they attempted to be good at everything.
Division of labour is where each worker specializes in only one small aspect of the total process. This benefits the employer in three ways:
- The simple tasks encourage the use of highly specific equipment
- Semi-skilled labour can be employed rather than highly skilled operatives
- Workers are only responsible for one process and so are able to develop a high level of expertise and increase their output per period.
Organizations can achieve results which individuals cannot achieve by themselves. Organisations:
Ø Overcome people’s individual limitations
Ø Enable people to specialize
Ø Save time
Ø Accumulate and share knowledge
Ø Pool the expertise
Ø Enable synergy: by bringing together two individuals their combined output will exceed their output if they continued working separately
In brief, organizations enable people to be more productive.
1.1 Classifications of organizations
Classification highlight similarities and differences among organizations. It can be based on:
- Size e.g. number of employees, volume of sales, profits earned
- Profit motive e.g. commercial or charitable
- Legal form e.g. sole trader, partnership and limited company
- Control e.g. directors, trustees, shareholders
- Ownership e.g. public (government owned) or private | 
发表于 2006-7-23 00:21
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