The Four Basic Ways in Which Organizations Work


An organization is a system of people working together to accomplish a common purpose. The structure of an organization determines how individuals interact with each other, what lines of authority they have and how to communicate.

The purpose of Organization is to provide a clear environment for workers so they can complete their tasks efficiently. It is also necessary to establish a clear hierarchy of roles and responsibilities.

There are four basic ways in which organizations work: based on mutual benefit, business concerns, service and commonwealth. These ways of working depend on the nature of the people who are part of the organization and the type of work that is being performed.

1. Identifying the Objectives and Goals of the Organization:

The main objective of the organization is to accomplish specific goals, objectives or objectives that are agreed upon by everyone involved. The manager should then group the activities required to achieve these goals and assign them to various departments, divisions or sections of the organization. He may delegate the authority so that each person works in his own area of expertise to reach the desired goal.

2. Identifying and Organizing the Work to Be Done:

The work that is required to attain the organizational goals and objectives is divided into different functions or sub-functions and these are organized in a series of departments and headed by specialists. The division of labour enables infusion of specialisation and makes the job easier to do.

3. Providing Authority, Delegation, Co-ordination and Communication:

The organisational set up should be designed in such a way that every worker is assigned to a task according to his educational qualifications, experience and skill and interest. He should be mentally and physically fit for the task.

4. Span of Control:

A company’s success depends on its ability to effectively control the people who perform the jobs. The span of control, or number of subordinates that can be controlled by one officer, is determined based on the level of management and the amount of work to be done.

5. Creating a Plan for the Future:

The organizational structure that will be used to accomplish organizational goals is shaped by what has already been achieved and what is desired in the future. It is a good idea to give some thought to the existing systems and the types of authority that are currently in place so that they can be replaced.

6. Purpose and Culture:

The organization’s culture is also important to consider when choosing an organizational structure. This includes the values that are instilled throughout the company, the nature of its leadership and the types of current needs it is trying to address.

7. The Employee:

Having employees who share the same vision and mission is vital to an organization’s success. Whether your organization is large or small, having the right employees on board to achieve your goals can make all the difference in how well you succeed.