It refers to the well-structured entity that comprises systematic processes, people and resources, which work collaboratively to achieve a specific goal. This system defines effective teamwork by strategically allocating tasks, responsibilities and roles, resulting in goal achievement. But when we talk in terms of HRM, organisation refers to the development of an organisational structure that ensures the accomplishment of a company’s goal. 

Types of Organisation 

Formal: This type of organisation comes with a formal structure. Functional organisation, line organisation, matrix organisation, and network organisation are some of the common types of formal organisation. Informal: such types of organisations are informal, generally influenced by friendship or shared interest. Generally, such a type of organisation is non-profitable.