Nature of Organization
Nature of organization states the motive of the firm. It is the opportunities it provides in the global market. It also defines the employees’ standard; in short, it defines the character of the company by acting as a mirror reflection of the company. We can understand the nature of any firm with its social system, the mutual interest it shares and the work ethics.
Let us take a quick look at all these factors −
Social system − Every organization socializes with other firms, their customers, or simply the outer world, and all of its employees - their own social roles and status. Their behavior is mainly influenced by their group as well as individual drives. Social system are of two types namely −
Formal − Groups formed by people working together in a firm or people that belong to the same club is considered as formal social system. Example − A success party after getting a project.
Informal − A group of friends, people socializing with others freely, enjoying, partying or chilling. Example − Birthday party.
Mutual interest − Every organization needs people and people need organizations to survive and prosper. Basically it’s a mutual understanding between the organization and the employees that helps both reach their respective objectives. Example − We deposit our money in the bank, in return the bank gives us loan, interest, etc.
Ethics − They are the moral principles of an individual, group, and organization. In order to attract and keep valuable employees, ethical treatment is necessary and some moral standards need to be set. In fact, companies are now establishing code of ethics training reward for notable ethical behavior.