Organization

We explain what an organization is and what types of organizations exist. Also, components of an organization and real examples.

Organization
Organizations can be for-profit or non-profit.

What is an organization?

An organization is a social system made up of a group of people focused on a common goal to achieve within a given time, space and culture. In every organization, norms, goals and axes are established that help achieve the mission.

There are characteristics that differentiate organizations from each other: such as size, area of ​​influence, use of economic, human, technological, natural resources, among many others. The mission to be fulfilled may or may not generate profits (the latter is the case of NGOs).

The members of an organization are usually arranged hierarchically establishing norms and rules. An organization can only function if among the people who make it up there is communication and the intention to act in coordination towards the goals or objectives to be met.

The different organizations generate work and their own culture, through their symbols, images and norms.

  • See also: Organizational development

Components of an organization

There are certain elements that make up most organizations, these are usually:

  • an end. Objective or purpose to be fulfilled for which the organization was born. It must be clearly defined and known by all members of the organization. For example: Produce safety footwear.
  • Members. Individuals who distribute the activities or work necessary to achieve goals or objectives. For example: The managers and employees of a shoe factory.
  • A group of tasks. Activities carried out by members of the organization to achieve objectives. For example: The division of tasks within the factory for the manufacture of footwear.
  • Standards. Instructions, rules and slogans that guide the actions of the members of the institution. For example: Safety regulations when handling machinery within the factory.
  • Resources. Instruments or goods necessary to carry out the organization's objective. For example: The investment and machinery necessary for the manufacture of footwear.

Types of organizations

Red Cross workers
Nonprofit organizations are financially independent and do not depend on any government. (Image: Alejandro Muñoz)

Organizations can be classified according to several criteria. Among the most representative are:

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According to the profit

  • For-profit organizations. They are private capital groups that market goods or services.
  • Non-profit organizations (NGO). They are social groups whose purpose is to cover the needs of the community and have financial independence, that is, they do not depend on any government.
  • Organizations with administrative purposes. They are those organizations created by a government to provide services to the community.

According to the structure

  • Formal organizations. They arise deliberately and a pattern of relationships is established between its components for the effective achievement of the objective.
  • Informal organizations. They arise spontaneously due to the activities and interactions of the participants.

According to the property

  • Private organizations. They are those in which the capital is private and not from the State.
  • Public organizations. They are those in which there is government participation.

According to your size

  • Small organizations. They are those that have between 10 to 49 members.
  • Medium organizations They are those that have between 50 and 199 members.
  • Large organizations. They are those that have between 200 and 1000 members.
  • For-profit and non-profit organizations

Examples of organizations

Some examples of organizations are:

  1. NGO: Greenpeace, Doctors of the world, Red Cross.
  2. Companies: Toyota, Kodak, Nestlé.
  3. Schools and universities: Autonomous University of Barcelona, ​​University of Buenos Aires, University of Chile.
  4. Sports clubs: Club Atlético de Madrid, Club Deportivo Guadalajara.
  5. Churches: Church of Jesus Christ of Latter-day Saints, Catholic Church, Evangelical Church.
  6. Hospitals and clinics: Pablo Tobón Uribe Hospital, British Hospital of Montevideo.
  7. Unions and confederations: Confederation of Mexican Workers, Truck Drivers Union, Metallurgical Workers Union.
  8. political parties: Colombian Liberal Party, Radical Party, Conservative Party.
  9. Banks and financial institutions: Banco Santander, Banco Itaú, Banco de Chile.
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Organizational culture

The organizational culture It is made up of a set of beliefs, norms and values ​​that define the identity of an organization and set the course towards meeting the proposed objectives or goals.

It is important that each organization determines its rules and regulations according to the mission, history, vision and values ​​that identify it. The elements that make up the organizational culture are defined from the origin of the organization (they can be updated over time) and are expected to be known and respected by all members of the institution.

Organizational culture is usually made up of elements such as the rules of coexistence within the organization, the relationship with the community, the relationship with the environment, identity, values, among many others.

References

  • “Understanding and developing organizational culture” in SHRM.
  • “Organizational culture and sense of belonging: the great challenge for companies” in El Cronista.
  • “The most powerful NGOs” in Esglobal.
  • “Elements to take into account in the organization of work” OBS Business School.