ACCT 301 Lecture Notes - Profit Motive
Document Summary
How they are defined and classified, their differences and why we need them. Basically an organization is a group of individuals operating together in a systematic way to achieve a set of objectives. Therefore, the three characteristics of an organization are: people, purpose, structure. Organizations may also be defined as a machine. It receives inputs from its environment in the form of resources and converts them into outputs, which satisfy demand. Formal and informal organizations the difference between formal and informal organizations is in the way they are structured. An organization structure is the grouping of people into departments or section and the allocation of responsibility and authority. As such the structure affects the communication process within the organization. Within a formal organization, a hierarchical structure exists, reflecting communication flowing downwards from top management to the departments further down the organization.
