---
title: "Define organization; importance in society"
subject: "Organization and Management"
chapter: 1
key: "semester_7/organization_and_management:org-importance-society"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/org-importance-society
site: BCT Engineering
---

# Define organization; importance in society

Organization and Management · Chapter 1: Organization

- Asked in: 2074 Asoj, 3+5 marks; 2069 Chaitra, 3+5 marks; year not given (asked 2 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/org-importance-society
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-1

## Question

Define organization. Explain the importance of organization in society.

## Short answer

An organization is a structured group of people with shared goals, combining resources to produce goods or services. Its importance includes providing goods and services, creating employment, driving economic development, efficient resource use, skill development, technological progress, social integration, welfare, stability, and achieving large goals.

## Answer

An organization is a group of people, with a formal structure and shared goals, who combine resources and efforts to produce goods or services.

#### Importance of organization in society
1. **Provides goods and services:** Organizations such as Nepal Telecom (communication), NEA (electricity) and Dairy Development Corporation (milk) meet daily needs.
2. **Creates employment:** Banks, hotels, factories and the government employ millions of Nepalis and reduce unemployment.
3. **Economic development:** They produce output, pay taxes (VAT, income tax) and increase national income.
4. **Better use of resources:** Scarce resources such as capital and skilled labour are used efficiently.
5. **Specialization and skill development:** Workers learn through training and experience; society becomes more skilled.
6. **Technological progress:** Companies invest in research and innovation, for example mobile payment services like eSewa and Khalti.
7. **Social integration:** People of different castes, regions and languages work together, building cooperation.
8. **Social welfare:** Through CSR, donations and community programmes (for example during the 2015 earthquake), organizations support society.
9. **Stability and continuity:** Services continue regardless of individuals.
10. **Achieves large goals:** Projects like hydropower or airports need coordinated effort of many people.

Without organizations, society would depend on scattered individual effort, resulting in low productivity and slow growth.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which is the best definition of an organization?
   A. A group of people with formal structure and shared goals who combine resources and efforts to produce goods or services
   B. A single person who owns resources and produces goods
   C. A random gathering with no common goal
   D. A government office only
   Answer: A. An organization combines people, structure, goals and resources. (Key point: Definition)

2. How do organizations contribute to economic development?
   A. They reduce the need for taxes
   B. They produce output, pay taxes and increase national income
   C. They replace individual skills with machines only
   D. They restrict competition
   Answer: B. Output, taxes (VAT, income tax) and higher national income support development. (Key point: Economic development)

3. What is meant by organizations providing social integration?
   A. All employees must belong to the same community
   B. Employees are separated by region
   C. People of different castes, regions and languages work together and build cooperation
   D. Only employment is provided
   Answer: C. Diverse people working together builds cooperation. (Key point: Social integration)

## Related in Organization and Management

- [Startup after graduation; risks and challenges](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Astartup-after-graduation) — Organization and Management, chapter 8