The executive in every walk of life, whether he knows it or not, directs social forces and determines the destiny of countless people, not only those… - Marshall E. Dimock

Organization is the arrangement of personnel for facilitating the accomplishment of some agreed purpose through the allocation of functions and responsibilities. It is the relat­ing of efforts and capacities of individuals and groups engaged upon a common task in such a way as to secure the desired objective with the least friction and the most satisfaction to those for whom the task is done and those engaged in the enterprise.

The opposition of some executives to formalized organizational analysis stems in part from a reaction against the too zealous advocacy of organization as the universal panacea of all management ills. These executives correctly understand that organization is not the whole of management any more than personnel or budgeting or public relation. Organization analysis, therefore, is not properly the periodic pursuit of the expert; rather, it is the continuous responsibility of the executive. His clue is found in mal-functionings; not in the blind following of preconceived stereotypes.

Administration is both social engineering and applied psychology. It is apparatus and mechanics, incentives and human nature. Let no one think it is merely the former. Nowhere is the need for psychology greater than in the organization, direction, and inspiration of men working in large groups. Outstanding administrative results are produced by spirit, morale, atmosphere; these, in turn, are the product of psychological mainsprings and invigorating incentives. As Benjamin Lippincott has recognized, both governmental and business administration resolve fundamentally into the role played by effective incentives.