Question

explain two reasons why organisation exist

Answer 1

organisation exist is to produce goods and deliver services productive manner, so that real economic value is added to the benefit of shareholders, the government and the broader community

Answer 2

Organizations exist for a variety of reasons:

• Tapping collective mindsets

By creating an organization, an entire group of people can contribute towards a single aim, be it business, social, economic, political or religious. Underuse of such intellectual resources is believed to impact on profits and efficiency as people who would otherwise be unheard alone can be easily incorporated into a single organization.

• Transaction cost efficiency

William G Ouchy argues that organizations are more efficient at reducing transaction costs than any other model. Ouchy also argues that as part and parcel of an organization, a social level is created: A corporate culture within the organization, based on procedures and traditions.