What is an organization? Definition and classification

All organizations can be divided into groups according to certain parameters or similar characteristics to determine the general methodology for analyzing economic activity, improving regulation and management. Classification and typology of organizations is necessary, for example, when choosing a government policy in relation to various types of enterprises. Examples are credit policy, taxation or business support policies of the state.

What is an organization can be understood by considering the grouping of organizations in legal form:

• An entrepreneur (not a legal entity);
• A legal entity represented by an organization that has a stamp, a settlement account with the bank, property in ownership, may in its own name realize personal non-property or property rights, fulfill certain duties, have an independent balance and registration with state bodies;
• Non-legal person (branches of the organization);
• An informal association of citizens, which is an association of people who are not linked by agreements on duties and rights and do not register with state bodies.

What is an organization show the common features of its some forms:

• Presence of at least one employee;
• Development of at least one goal that should be aimed at satisfying the interests and needs of the individual or society;
• Receipt of surplus product in its various manifestations (materials, services, information and spiritual food);
• Achieving the transformation of some resources in the process of economic activity.

In order to understand what an organization is, it is necessary to consider the classification by several more features.

So, public organizations are created with the purpose of satisfaction of various social needs and other public interests. They include: unions, political parties, blocs and human rights organizations. This type of organization carries out this activity voluntarily. Examples are "Greenpeace", "Metropolitan dog breeding", "Union of consumers", etc.

Business enterprises give a more complete answer to the question of what an organization is, thanks to the satisfaction of the needs of the individual and society as a whole through the implementation of relevant activities. They are divided into scientific and production, intermediary and production.

Budget organizations are entities that are financed from the state budget. Such organizations are exempt from most taxes.

There is another type of business entity - regional international organizations. This status is assigned to individual organizations that are politically or functionally integrated , ensuring the cooperation of states that are located in the same geographical area and are interested in coordinating foreign policy, as well as cultural, social and legal relations.