Question

Consider the following statements regarding the purpose of organization as per management theory:

1. An organization is a group of people who cooperate with each other for achieving certain common objectives.
2. The purpose of an organization is to create and produce something useful and desired by society.
3. The purpose of an organization is solely to create a formal structure with a clear hierarchy and division of labor, irrespective of its output.

• A. ii only
• B. i only
• C. i, ii
• D. All

Answer 1

Answer:

C. i, ii

• While creating a formal structure is a function of organizing, it is a means to an end, not the sole purpose of an organization. The ultimate purpose is to achieve objectives and create useful outputs, as stated in the previous statements.