Organization implies not only a purpose or a set of purposes but a form appropriate to carry on the activities to achieve the objectives. The greater the range of activities of an organization, the more complicated, and specialized does its structure become. It is the organization which carries on the activities of life by means of parts or organs more or less separate in function but mutually dependent. As the business enterprise grows, the separation and definition of functions increase but the oneness of the whole is nonetheless important.
Organization forms the backbone of the management because without its proper care at higher, middle and lower levels of administration, it may be practically difficult and or impossible for any management to run smoothly. Organization is not an end in itself, but a means to the end of business performance and business results. A sound organization contributes greatly to the continuity and success of the enterprise.