Why organisations exist

However, they are active seekers of sponsorships and aid from different other organizations. Basically an organization is an entity or a social arrangement which is aimed to achieve some goals and objectives. The existence of an organizations totally depends on the goals and the objectives on the basis of which, it came in to being.

Organizations can be for-profit or non-profit organizations and they have their own environments where people are responsible to achieve the mission of the organization. Someone has greatly said about it, that an organization makes the ordinary people to do some extraordinary things, that is why it exists. Most of the organizations tend to change over the period of time because those which do not change cannot survive in the demanding world of globalization.

It is the rule for the going-concern of organizations to keep bringing some change and innovations for the customers. There are various ways through which they can change over time like through expansion, diversification, and product or brand extension etc.

For example, United Nation Organization started to bring social reforms in the world and today it is the most diversified organization in the world.

Anonymous answered. Organization exist to overcome the problem of individual limitations. Physically,mentally and of course financially. This can enable the individual to specialize in their strengths. Search for free courses, interactives, videos and more! Free learning from The Open University. Featured content. Free courses. All content. Course content. About this free course 12 hours study. Level 2: Intermediate. Course rewards.

Free statement of participation on completion of these courses. Create your free OpenLearn profile. Course content Course content. Organisations and management accounting Start this free course now. Free course Organisations and management accounting. Previous 1. This is further covered in Chapter 6. The key element of change then is its widespread effect. Organisations exist to provide benefit to a variety of putative stakeholders. Shareholders receive benefit from their investment in private sector companies, for example.

Governments provide benefit to their citizens though that might be a debatable point depending on where you live. Banks were initially created for purposes not entirely linked to getting rich at the expense of their customers, and many of the benefits are consequent on an eco-system of different organisations.

All of these types of benefit are or should be the focus of the organisation created to provide them. How the organisations are structured and managed is, however, unique, even in the same vertical sector. For example, government is government, but does anyone really believe that the French govern in the same way as the English?

Or that politics in the US is not influenced by the media more than in any other country? Or that all countries have a free press? The same is true of other organisations working in the same vertical, whether oil, pharmaceutical or IT; characteristics may be similar, but ways of working, management and pretty much everything else, may be labelled the same way, yet do not exist in the same way. As mentioned earlier, a cynical answer would be to ensure that it continues to exist, and sometimes cynicism is reality.

If businesses are to flourish, an organisation and a hierarchy must exist. Even very small organisations exist primarily to serve themselves; a shopkeeper may have only one employee, but that employee exists to help maintain the business of that shop — the hierarchy is flat, but, nevertheless, it exists. And furthermore, the bullet list of questions that we began with at the beginning of the chapter, will be applicable, albeit at a level of effort commensurate with the scale of the business.

A new till may be a future purchase, for example, for a small corner shop business. Maybe the owner should buy a BlackBerry? Or in a large organisation, many BlackBerries, if the business wishes to improve communications. So how do we get people to think across boundaries? Why is it important for organisations to work across boundaries? Is it speed and execution perhaps? We will elaborate on these issues throughout this book. We should also point out that elaboration is not the same as guidance.

By and large, most organisations will face similar challenges, so we have created checklists that we believe all organisations will be able to use to orient their decision-making processes.

But the question of guidance is another issue. Every organisation will have a different corporate culture and goals, and so it is impossible and pretty stupid to pretend that we — or come to that anyone else — has the single golden nugget that will change for the better everything that is, or should be, done.

How you answer the questions in the context of your own organisation, is the most important factor; where possible, we provide some ideas and some examples that may assist, though, as we will often reiterate, there is no one, universal answer.

Is there then one sure-fire way to help the organisation survive? To facilitate change and improved business processes, the US Department of Defense provides official, documented guidance about authorised methods.

One approach is corporate information management, which has a specific directive concerning change through automation. The directive suggests that you should think first about the best way to perform an important action, and then automate only the necessary information: avoid automating ineffective or unnecessary processes. Fairly innocuous stuff really, and hard to argue with. One can see parallels with lots of published good practice.

Those in power, stay in power. No vision, only procedures. Plenty of opportunity for red tape, scapegoating, etc. This stuff is more inclined to stifle change, rather than facilitate it.