BBA 1st Semester Notes Definition Importance Nature of Organisation

BBA 1st Semester Notes Definition Importance Nature of Organisation

BBA 1st Semester Notes Definition Importance Nature of Organisation :- In This Article You Can Find Meaning Preference shares Notes . and definition of organisation importance of organisation Means That Its Is Best Topic of Management Study For BBA 1st Semester Year . Here You Find Topic Wise,Chapter Wise, Subject Wise  Study Material BBA MBA Management introduction of management  And other  Links of Related to the management . How To Learn BBA Management Notes Difference between Delegation and Decentralisation Meaning of Features of management & Nature of Management other You Here . we find the bba mba definition importance of nature of organisation more  Thanks For Read This Article. BBA Bachelor of degree program for business administration/acumen, was introduced to teach and guide us on the path of a career set Parallel to the path of life. It is god to plan ahead of time how you are going to manager the difficuties you might face in future, this is the symbol of success and confidence.

BBA 1st Semester Notes Definition Importance Nature of Organisation
BBA 1st Semester Notes Definition Importance Nature of Organisation

Nature of Organisation (BBA Business Organistion)

The nature of organization is discussed as follows :

  1. Organising is a Basic Function of Management : It is essential for the achievement of organizational objectives. Organizing is done in relation to all other functions of management, namely : planning, staffing, directing and controlling and all the areas of business, namely : purchasing, production, marketing, financing, personnel, etc. The organizing function is performed by all the mangers.
  2. Organising is always related to Objectives : Whether it is organization of the entire entire enterprise or a part of it, organising is influenced by objectives. The operations are divided into suitable jobs and authority and responsibility, relationships are determined to achieve the pre-decided objectives.
  3. It is a Process : Organising is not a one step function. Managers and executives are continuously engaged in organising and re-organising. The nature of the process or organization has been described by Theo Haimann as follows :

“Organisation is a process of defining and grouping the activities of the enterprise and establishing authority relationships among them”

  1. Organisation Show a Structure of Relationship : The structure of relationship created by the management is referred to as ‘formal organisation’. But an organisation also includes the network of social relationship that arise between people working together. Such relationships are known as informal organisation. The study of both formal and informal relationship is necessary to understand the nature of any organisation.
Definition Importance Nature of Organisation BBA 1st Semester Notes
Definition Importance Nature of Organisation BBA 1st Semester Notes

Definitions of Organisation (BBA Study Material Business Organisation)

According to D.F. Farland, “an organisation is an identified group of people contributing their efforts towards the attainment of common goals.”

According to Koontz and O’Donnell, “Organisation involves for grouping of activities necessary to accomplish goals and plans, the assignments of these activities to appropriate department and the provision for authority delegation and coordination.

According to Mooney and Railey, “Organisation is the from of every human association for the attainment of a common purpose. They visualize it as the process of relating specific duties or functions in a coordinated whole.”

According to L. Urwick, “Organisation is to determine the activities to accomplish a job and arrange the distribution of activities among the people.”


Importance of Organisation (BBA Notes)

Definition Importance Nature of Organisation BBA 1st Semester Notes
Definition Importance Nature of Organisation BBA 1st Semester Notes

The importance of a sound organisation for any enterprise can hardly be overemphasised. A good organisation can contribute to the success of an enterprise in many ways. An organisation is definitely the backbone of management though which operation of an enterprise are run. It sets the relationship between people, work and resources to get production results. Organisation helps in achieving the following advantages :

  1. It Facilitates Efficient Management : Organising is very much necessary for the performance of other function of management like planning, staffing, directing and controlling. Poor organisation may result in duplication of work and effort. Some of the important operations may be left out for lack of efficient organisation.
  2. It Facilitates Better Coordination and Communication : Organisation is an important means of bringing coordination among the various departments of the enterprise. It creates clear-cut relationship between the department and helps in laying down balanced emphasis on various activities. It also provides the channels of communication for the coordination of the activities of different departments.
  3. It Provides for Optimum use of Technology : Sound organisation structure is flexible and gives adequate scope for the introduction of improvement in technology. It helps in introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments.
  4. If Ensues an Optimum use of Human Resources : Sound organisation matches the job with the individuals and vice versa. It ensures that every individual is placed on the job for which he is best suited. This helps in better use of human resources working in the enterprise.
  5. It Helps in the Growth of an Enterprise : Without an organisation, an enterprise is just like a man without a body, leaving head and mind only. Good organisation contributes greatly to the continuity and success of the enterprise. It contributes to the growth, expansion and diversification of the enterprise.
  6. It Helps in Giving Reasonable Emphasis to Various Activities : Organisation divides the entire operations of an enterprise into departments and sections and lay down their goals. This clearly states the role of various departments and section toward achieving the overall goals of the enterprise.

Small organisations makes the proper arrangement of various resources and facilitates their efficient utilisation. It provides direction to the efforts of individuals and groups by concentrating upon objectives.


Difference between Delegation and Decentralisation

Definition Importance Nature of Organisation BBA 1st Semester Notes
Definition Importance Nature of Organisation BBA 1st Semester Notes
Basis Delegation


1.       Definition and nature It refer to the entrustment of responsibility and authority from a superior to his subordinate. Thus, it is individualistic.


It refers to the systematic delegation of authority to a lower level in the organisation. Thus, it is totalistic.
2.       Scope or parties involved It is restricted from person to another. It takes place when delegation is made to all the employees at a number of levels.


3.       Relationship Delegation establishes superior subordinate relationship. Decentralisation is a step towards creation of semi-autonomous units.


4.       Responsibility Only duty and authority are delegated to subordinate, but responsibility for result will remain with executive In decentralisation, executive is relieved from responsibility and the subordinates become liable for that work.


5.       Control The person who delegates authority keeps the power to control with himself.


Control is excerised in a general manner. The authority to control may also be delegated to the lower levels.


6.       Need Delegations is compulsory if an executive wants to get the help of others in getting things done. Decentralisation in optional management may not find it necessary to decentralise authority.


7.       Effectiveness It is possible and effective in all organisations. It is only possible and effective in big organisations.

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Montey Parjapati



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