Meaning of organization and its various types with features.

 Organization- factor of production... 

In common language, an institution or enterprise which is specialized to carry out specific work is called organization. But in economics, organization may be defined as a collective body of active human resources established for the scientific utilization of various factors of production in the line of production of goods and services. Business firms and industries of any nature and scale are the examples of organization. 

          Like land, labour and capital, organization is also separate factor of production. Organization gathers other three scattered factors of production in one place for production of goods and services. Without organization, production isn't possible. It utilizes other factors of production like land, labour and capital. 

      Following are the features of organization: 

1. Definite structure: Organization is a group of people but it has definite structure. It consists a limited resources according to its nature and wants. It doesn't change always so it has definite structure. 

2. Group of people: Organization is a collective body of active human resources. It is a group of people where various people associate and run the organization with common goal. 

3. Specific technology: We know that organization has definite structure so it has specific technology as well. The technology of the organization is determined according to its nature and goal. 

4. Risk management and return: Since it's a collective body of active human beings so it collects capital and invests in the place having low risks. By managing risk it earns returns and also distributes the returns among the people. 

5. Open environment: Organization has open environment as per its nature and goal. The organization has full right to work as per its nature and wants. There's full opportunity to do anything better.