A business organization is an individual or group of people that collaborate to achieve

certain commercial goals. Some business organizations are formed to earn income for
owners. Other business organizations, called nonprofits, are formed for public purposes.
These businesses often raise money and utilize other resources to provide or support public
programs.
Ads by Google

Project Manager Software

Genuine Project Management. Get Your 30 Day Free Trial Now!
www.projectmanager.com

Organization Meaning
The best way to derive the meaning of the term "business organization" is to focus on each
word separately. Organization is a broader term, as it includes businesses and other groups
of people not organized for commercial purposes. Clubs and sports teams are examples of
non-business organizations. Organizations have a specific structure and hierarchy. People
and systems create a culture within the organization and guide its operation. Different
organizations have different policies, work flows and objectives.

Business Meaning
All businesses have commercial objectives. For-profit businesses sell products or services to
generate revenue and earnings. Success depends on the ability to gain more in revenue
than is spent on fixed and variable expenses. Nonprofit businesses must bring in enough
revenue to pay employees and cover the costs to administer or support programs. Any
money they have left over after expenses is put back into the organization.
Related Reading: How do I Choose a Business Organization?

System View
Definitions of organizations typically emphasize the systematic approach used to achieve
goals. Businesses typically begin with a hierarchy that establishes structure and order in
communication and workflow. Business leaders work to establish a business mission, vision,
values, objectives and strategies. These establish the direction for the organizational
system. People, processes and policies are used to fulfill the mission and strategies. The
effectiveness of a business organization often relates to the ability of leaders to get all
departments and employees to work together toward company objectives.

Organizational Culture
An organizational culture reflects the shared values within the organization that impact
employee morale, communication and, ultimately, success. Companies use formal processes
and activities to influence culture, such as social activities to promote teamwork. However,
much of an organization's unique culture evolves through informal channels. For example, a
company's culture can be affected by the way employees communicate during lunch, breaks
and other informal encounters.

Management in businesses and organizations is the function that coordinates the efforts of people
to accomplish goals and objectives using available resources efficiently and effectively.
Management includes planning, organizing, staffing, leading or directing,
and controlling an organization to accomplish the goal. Resourcing encompasses the deployment
and manipulation of human resources, financial resources, technological resources, and natural
resources. Management is also an academic discipline, a social science whose objective is to study
social organization.