Organization : Characteristics and Types

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Organization : Characteristics and Types

Characteristics of organization 

1. Human Association 

Organization is an association of people in other words, organizations collect two or more persons for conducting the activities. People contributing the activities. People contribute their efforts, interact each other for accomplishing the tasks. 

2. Common Goal 

Organizations have common goals to achieve by achieving common goals of organization; each member can achieve his/her individual goal in better way. Without common goal, organizations can’t continue their existence in proper way. For examples, hospital may have common goal of providing treatment service. Similarly university may have common goal to delivering knowledge and conducting research works. 

3. Structure 

Each and every organization has its specific structure. Organizations establish various departments, units and positions. The departments and units conduct different types of activities. But the activities of the departments and units are interrelated to other departments and units. Similarly the departments, units and positions have their own authority and responsibility. 


Technology is method, procedure or ideas for performing activities. Organizations use technology for conducting the activities. Organizations transform the inputs to outputs. For this purpose technology is required. But the technology may be traditional or modern. Machines, equipments, instruments, etc. are media for implementing technology in practice, for example. 

5. Continuous Existence 

Organizations have relatively long life. Entry and outgoing of someone doesn’t affect life of organization. Some investors and employees may join an organization or some go out but organization exists relatively for a long time period but continuous existence here is in the sense of relatively. In long run all things die. 

6. Coordination 

Coordination refers to integration different to maintain similar sprit among them. For achieving common goal, proper link or connection among various department, unit position is required. Therefore coordination is an important characteristic which organizations have. 

7. Environment 

Environment influences the organizations. Organization should properly analyze environmental charges and its effect. Environment may affect positively or negatively to organization because it creates opportunity and threats. Political, economic, socio-cultural and technological forces are the important general environmental factors. 

Types of organization 

There are different types of organizations in practice. On the basis of size there are large scale, medium scale and small scale organizations. On the basis of ownership, there are sole trading concern, partnership enterprises. On the basis of objectives and beneficiary groups, organizations are categorized as below: 

1. Business Organization 

Main objectives of business organization is to earn profit and owners are major beneficiaries. A business organization needs profit for survival, growth and existence. Owners invest and establish business organization. Therefore, owners are major beneficiaries. Golchha organization, chaudhari group, standard chartered bank, etc are some business organizations. 

2. Service Organization 

Service organizations are those which have main objectives of providing services and specific clients are major beneficiaries. Service organizations obtain their fund from government, various individuals and business organizations, etc as donation. Therefore they can survive without profit motive. Maiti Nepal, human rights commission, NGO, etc are service organizations. 

3. Common weal Organization 

Common weal organizations have major objective of providing welfare and general public at large number is main beneficiary. Common weal organizations obtain theit fund from government. Plice force, postal office, government ministers are some commonweal organizations. Service organization provide welfare to large number of public. For examples, bir hospital is service organization because generally all types of people can get welfare from postal office. Similarly, there is difference in obtaining fund. Commercial organizations obtain funds from government where as service organizations raise fund from government and nongovernment sectors as donation. 

4. Mutual benefit Organization 

Mutual benefit organizations are membership based organizations. Main objectives the rights and interests of the members, members are the major beneficiaries. People can join such organizations by fulfilling the requirements of organization. Religious organizations, teacher’s organization, women rights organizations, etc are some mutual benefit organizations. 

5. International Organization 

An organization establish and operated in two or more than two countries may be teamed as international organization. To uplifting the interests of members countries and member organizations is main objective of such organizations. But international organization may be established and operated in any form as business, service, commonweal, mutual benefit. 

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