"An organisation is not simply a group of people at a given place."  What can be inferred from this statement with regard to business?

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pohnpei397 eNotes educator| Certified Educator

What we can infer from this statement (with regard to business) is that the structure of an organization matters very much.  The way that a firm is put together is important to how well it will be able to succeed.  If a firm is set up with a bad organizational structure, it will not be able to prosper.  It is liable to be very inefficient due to flaws in its structure.  In other words, we can infer that an organization is more than a group of people who are part of the same firm.  Instead, an organization must be set up in the correct way, with the correct divisions of labor and lines of authority, in order to be efficient.