Role and characteristics of organizations

Role of organizations for human civilization

1. Satisfying needs: Organizations produce food, clothing, medicine, energy and communication that people cannot make alone.
2. Social progress: From ancient guilds and kingdoms to modern companies, organized effort built cities, trade and education.
3. Division of labour: Specialization improved skills and productivity, speeding up development.
4. Economic growth: Industries, banks and trade increase income and living standards.
5. Knowledge and technology: Universities, research bodies and companies create and spread knowledge.
6. Law and order: Government and institutions maintain peace and justice.
7. Culture and social bonding: Religious, social and community groups preserve values and unite people.
8. Employment and security: They provide livelihoods and protection (insurance, provident fund, social security).
9. Disaster response: Organizations like the Nepal Red Cross and local governments organised relief after the 2015 earthquake.

Characteristics of an organization for business operations

1. Common objective: Profit, growth, service or all of these.
2. Group of people: Owners, managers and workers.
3. Division of work: Tasks divided by specialization (production, marketing, finance, HR).
4. Authority and responsibility structure: A hierarchy from top to bottom.
5. Coordination: Departments work in harmony.
6. Use of resources: Combines men, money, machines, materials and methods.
7. Rules and policies: Written procedures guide behaviour.
8. Open system: Interacts with customers, suppliers, government and competitors.
9. Legal identity and continuity: For example, a company registered under the Companies Act 2063 is a separate legal person.
10. Communication and control: A communication and control system keeps performance in line with plans.