It is the system through which the force of men, materials, machinery and money are brought together in an orderly way to turn out finished goods at a profit. It can also be defined as an identifiable group of people contributing their efforts towards attainment of common goals. The following are the characteristics :

·        Self-identification through advertisement of products.

·        They work to remain independent.

·        The existence of a group is another main character.

·  Organizations are essentially co-operative enterprise in the sense that they represent co-ordinated efforts of many individuals.

·        The goals and objectives are immediately connected with the organization.

·        The objectives serve to give a sense of direction.

·        It also gives a sense of unity.

The structure is a particular system of arrangement, the pattern or relation between the various positions and between the various position holders.


The number of members at the higher level goes on decreasing till there is only one person at the top of the organization. Organization is necessary when the work is jointly done by many people and the work is divided between groups of persons, each group doing a part of the total work.


Necessity of Organization

·      When production is carried out on a large scale, it is not possible for one man alone to carry out all the functions by himself. He has to delegate some of his functions to others. Naturally, he has to supervise and co-ordinate the work.

·   As the production processes have more and more complex, it has become necessary for the management to employ experts and specialists. Production is divided into different departments and they are looked after by the various Department Heads, who are ultimately responsible and answerable to the Management.

·   Because of large scale production and competition, scientific management is highly essential.

·   Efficient management controls the expenses and reduces time and material wastages. Every factory construction work has to depend upon efficient organization and management.


Essentials of Organization

They are based on the following principles

·        Division of labour

·        Sources of Authority

·        Relationship


The main department in any major manufacturing plant can be divided into five groups, viz. secretarial, production, commercial, service department and personnel. These department have in them different sections as given below :

·        Secretarial

§  Time office

§  Labour office

§  Accounts Department

·        The Service Department

§  Design

§  Stores

§  Inspection

·        The Production Department

§  Production

§  Drawing Office

§  Planning

§  Progress Department

·        The Commercial Department

§  Purchase

§  Sales

·        Personnel & Industrial Relations Department

§  The employment and training of workers

§  Labour Relations


§  The Public Relations Department