What is an Organisation? Understanding Different Types, Kinds and Differences

The term "Organization" is a common term used in daily business environments. However, it is often overlooked and not defined. We have all been a part of an organization at some point in our lives, whether it was in school, college, or the workplace. The most fundamental example of an organization is our family. Understanding the definition and meaning of an organization is essential to comprehend its significance.

Definition of an Organisation

An organisation is a group of individuals working towards a common objective. It is a structured entity where the responsibilities, roles, and authorities of each member are clearly defined, and the relationships between all members are established.

What is an Organisation?

Organisations are structures created to facilitate the attainment of shared objectives or to carry out daily tasks efficiently and in a disciplined manner. They typically involve groups of individuals working together towards a common goal.

Organizations come in various forms, ranging from small-scale ventures focused on short-term projects like distributing food to the homeless, to large-scale entities dedicated to long-term or repetitive work. These organizations may also be classified according to their legal structure, including governmental organizations, non-governmental organizations, corporations, international organizations, political organizations, non-profit corporations, charities, armed forces, educational institutions, cooperatives, and partnerships, among others.

Types of Organisations

The organisations can be divided into different types based on their structure and the kind of work performed in them. Let us learn about them one by one.

1. Hybrid Organisation

A hybrid organization is a unique type of entity that combines aspects of both the public and private sectors. These organizations operate in both spheres, allowing them to benefit from the advantages of both. A prime example of a hybrid organization is a national bank, which performs both general duties and commercial activities to promote business growth.

2. Voluntary association

A voluntary association is a group of individuals who come together with a shared purpose, without any legal formalities. Members of the organization work towards achieving a common goal, as outlined in the mission statement, manifesto, or through informal means.

3. Legal Organisation

Legal organizations are established in accordance with government regulations and laws. Examples of such organizations include banks, post offices, educational institutions, hospitals, and corporate entities. Each member of a legal organization has clearly defined roles and responsibilities, and is hired through a proper recruitment process. Legal organizations make up a significant portion of the economy.

4.Secret societies or criminal Organisations

These types of organizations operate with the intention of engaging in illegal or criminal activities, and are typically informal and unregistered. Recruitment is often conducted by individuals who share the organization's goals or objectives. However, in order for these organizations to function, they require at least one individual to take on the role of leader.

The goal or purpose of the organisation.

Members of the organisation and communication between them.

The action involved performing the task.

An example of this type of organisation is a terrorist organisation.

Example of Organization

In essence, an Organisation refers to a group of individuals who are formally structured and bound by legal obligations to carry out specific tasks. To illustrate this further, let us consider a school as an example of a formal organisation with the main objective being to provide education to its students.

Within a school, there are various individuals, such as the headmaster, headteacher, and subject teachers, each with their distinct roles and responsibilities. For instance, the headmaster is tasked with maintaining discipline within the school. Additionally, they are responsible for hiring qualified teachers and determining the salary and fee structure within the school. All members of the school community, including students and teachers, are expected to adhere to the rules established by the headmaster. Similarly, headteachers are in charge of managing the different departments within the school. By assigning specific roles and responsibilities to each member, a school can operate smoothly and harmoniously.

Structure of an Organization

Now let us learn about the different types of structure of an organisation. The organisation structures can broadly be divided into four categories.

1. Ecologies

The organization's structure operates similarly to a natural ecological system, with internal competition among members. Those who perform well are rewarded accordingly, while those who do not receive less recognition.

2. Committees and juries

Committees and panels are formed to accomplish a specific task, with members selected based on their expertise and skills. In some cases, decisions are made by a voting system, while in others, they are made through collaborative discussion. These types of organizational structures may be permanent or temporary, depending on the nature of the task at hand.

3. Pyramid or Hierarchical

The hierarchical structure of an organization is a common approach. It typically involves a single leader who oversees all members and each member has a specific role to fulfill within the organization.

4. Matrix Organisation

In a dual reporting structure, employees have two supervisors - one who focuses on training and development, while the other evaluates their work performance. This system ensures that employees receive the necessary support and guidance to excel in their roles.