Explanation:

Organization refers to a collection of people, who are involved in pursuing defined objectives. It can be understood as a social system which comprises all formal human relationships. The organization encompasses division of work among employees and alignment of tasks towards the ultimate goal of the company. It can also be referred as the second most important managerial function, that coordinates the work of employees, procures resources and combines the two, in pursuance of company’s goals.

Process of Organization
Step 1: Determination and classification of firm’s activities.
Step 2: Grouping of the activities into workable departments.
Step 3: Assignment of authority and responsibility on the departmental executives for undertaking the delegated tasks.
Step 4: Developing relationship amidst superior and subordinate, within the unit or department.
Step 5: Framing policies for proper coordination between the superior and subordnate and creating specific lines of supervision.
Organization is a goal oriented process, which aims at achieving them, through proper planning and coordination between activities. It relies on the principle of division of work and set up authority-responisbility relationship among the members of the organization.