THE NATURE OF ORGANIZATION STRUCTURE

In other chapters we discuss key elements of the individual and the factors that tie the individual
and the organization together. In a given organization, these factors must fit together within a
common framework: the organization’s structure. Organization Defined An organization is a
goal-directed social entity with deliberate processes and systems.1 In other words, an
organization is a collection of people working together to accomplish something better than they
could working separately. Organizations are social actors, influencing and being influenced by
their environments and affecting the behaviors of individuals in them. As social actors,
organizations are different from two other entities, those being individuals and the government or
state. Organizations influence and are influenced by other organizations, as well as individuals
and the state.3 Top management determines the direction of the organization by defining its
purpose or mission, establishing goals to meet that purpose, and formulating strategies to achieve
the goals.4 The definition of its purpose gives the organization reason to exist; in effect, it
answers the question “What business are we in?” Establishing goals converts the defined purpose
into specific, measurable performance targets. Organizational goals are objectives that
management seeks to achieve in pursuing the purpose of the firm. Goals motivate people to work
together. Although each individual’s goals are important to the organization, it is the
organization’s overall goals that are most important. Goals keep the organization on track by
focusing the attention and actions of the members. They also give the organization a forward-
looking orientation. They do not address past success or failure; rather, they force members to
think about and plan for the future.