IntroductionWhat is an organization? There are many definitions of an organization, but most of them share a few core characteristics. Collective goals An organization exists because people choose to work together toward a shared purpose. For example, a business typically aims to make a profit, so employees coordinate their work to help the business reach that goal. Social arrangements An organization is made up of more than one person. People take on different roles and work together in an organized way to achieve the shared goal. Controlled performance Shared goals don’t happen automatically. Because people have different backgrounds, preferences, and ways of working, organizations use rules, procedures, and supervision to keep work aligned with targets. For example, an organization might use security personnel and workplace policies to maintain order and ensure that employees follow expected procedures. Key pointsWhat is an organization? Exists to achieve collective goals Composed of social arrangements (multiple people, defined roles) Uses controlled performance (rules, procedures, supervision) to align efforts with goals More from Goals and decisions of an organizationClassification of organizations Long-term measures of shareholders’ wealth