Question

Organization is a social system of people who are structured and
managed to meet some goals. Explain with help of relevant examples Write an essay of 400-500 words ​

Answer 1

An organization is a social system of individuals who are organized and controlled to achieve specific objectives.

• People-to-people and people-to-work ties are used to accomplish common goals. Organisations are essentially objective directed social entities constructed for coordinated activity systems and are connected to external environment.
• Organizations are social systems as they are made up of people and have a clear goal that the individuals who make up the organization subscribe to.
• Norms and guidelines are used by every organization as enforcement mechanisms to keep people's individual conduct in check.
• For example, an organisation's mission statement is also employed to amply justify its apparent reason for existence in clear and succinct terms. Typically, the statement outlines its culture, beliefs, social system and ethics.
• The specific aim of the prepared statement is to adequately convey the specific purpose and unique vision of the business to its key staff, potential clients, local vendors, and other stakeholders.  

Answer 2

Social system

The social system was created by Raju and his friends who later became his employees as well as the employees who joined later. In larger businesses, there will be people from diverse backgrounds of education, gender, religion, region, etc. They form the social system. Business is actually something that society has created for itself to make things simpler to fulfill its needs and wants. Therefore, we must accept that it is a social system and it is the social system and not business itself that dictates how a business is to be done at a macro level. This is done through social pressures such as the ones created by NGOs and environmental groups and also through legislation by the representatives of the people, etc. So, though a business is an economic entity, we should not forget that it is the society which gives it sanctity.

Society, through its government, can change the rules of business and say that you can bring in foreign direct investment in this business, but not that business, etc. because a business is an organisation that the society has created to fulfill its needs. If it does not do so, the society tends to control it and even close it down. This is not to say that society and government interferes in everything. In fact, society gives business a lot of freedom, because in doing so, competition takes place, the cost goes down, quality goes up, and the society’s need is better fulfilled. If you think of mobile phones, you will see how this freedom has helped the society. You can also see how when this led to corruption, another system called the judicial system (also created by the society) intervened on behalf of the society and cancelled about 122 licenses. Every business and young leaders of such business which you are or soon will be must understand and accept this power of the society and that business organisations are its creation and will exist only if it fulfills its purpose.

Goal

The goal of the social system in the case we discussed was to make tables and chairs and earn better wages and have better working condition than working as daily wage carpenters. All businesses, whether big or small, have a goal. Society too has a goal. The goals of the society are not only to have  tables  and  chairs  but  also  employment  and  prosperity.  All organisations will have a goal. It may be implicit in small organisations an often well expressed in larger ones. This is usually done through a vision and mission statement.  

Structure and management

There were teams of carpenters and one person for purchase and delivery. Whenever the organisation is large, we need to create a way of doing work systematically. For example, we can have each carpenter buy the wood and materials, make a table and then go and sell it. We can also have one carpenter cut all the pieces of wood to size, another assemble it, a non-carpenter do the purchase and sales, etc. If we group similar work, it is possible for us to be more efficient. So creating a structure is about grouping similar works and doing it. If you recall, Raju as a person, who bought wood, made tables, and sold to the neighbourhood or even the shops in the city, is very different from the Raju who created teams to make tables and chairs and teams to sell them. You can see how structuring has increased the productivity but also brought in other jobs such as specialised jobs of purchasing wood, selling, book keeping, etc.