--- title: "Role and characteristics of organizations" subject: "Organization and Management" chapter: 1 key: "semester_7/organization_and_management:org-role-characteristics" source: https://www.bctengineer.com/q/semester_7/organization_and_management/org-role-characteristics site: BCT Engineering --- # Role and characteristics of organizations Organization and Management · Chapter 1: Organization - Asked in: 2073 Chaitra, 4+4 marks - Video: [Characteristics of Organizations](https://www.youtube.com/watch?v=Fu_zPMH5kS4) — Wileen's Edventure - 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-role-characteristics - Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-1 ## Question Describe the role of organizations for human civilizations. What are the characteristics of an organization for business operations? ## Short answer Organizations satisfy needs, enable social progress, division of labour, economic growth, knowledge spread, law, culture, employment, and disaster response. For business operations, characteristics include common objective, group of people, division of work, authority structure, coordination, resource use, rules, open-system interaction, legal identity, and communication/control. ## Answer #### 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. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. How did division of labour help human civilization? A. It made everyone do all jobs B. It removed trade C. It stopped technology D. Specialization improved skills and productivity, speeding development Answer: D. Specialization raises skills and productivity. (Key point: Role in civilization) 2. Which example of organizational role in disaster response is given? A. Nepal Red Cross and local governments organised relief after the 2015 earthquake B. NEA built roads after COVID-19 C. Banks provided relief in 1990 D. Cooperatives rebuilt temples Answer: A. The answer cites the 2015 earthquake relief. (Key point: Disaster response) 3. Why is legal identity a characteristic of a business organization? A. It makes the company a government office B. A company registered under the Companies Act 2063 is a separate legal person with continuity C. It removes the need for rules D. It makes owners personally liable Answer: B. Registration gives a separate legal person. (Key point: Legal identity) 4. Which are the resources a business organization combines? A. Only men and money B. Only machines C. Men, money, machines, materials and methods D. Only land and labour Answer: C. The five Ms are combined. 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