An organization is a combination of something or someone in a single tool designed to achieve the intended goal. This is a complex system, which is in constant dynamic action. Considering the functions of the theory of organization, we can conclude that they are part of the field of scientific knowledge, concerning its general laws. From the point of view of economic theory, this system is viewed as a social entity that is consciously coordinated, as well as having certain boundaries and acting on an ongoing basis.
The functions of the organization that produces material goods cover all stages of the production cycle. The process of output of finished products includes certain elements in its composition. These include labor, its tools and objects, as well as information. As a result of the production cycle, a finished product appears. It is the product of labor.
The release of material wealth consists of two components: productive forces and production relations. Their combination forms a way of carrying out the technological process. The productive forces are those that take part in the production of products. During the time for which production is made, as well as its subsequent distribution, certain relationships arise between people. They are classified as production. This factor is also subjective. The activity of any firm that produces goods is realized through the functions of organizing production relations and productive forces. In other words, through material and personal factors.
Providing the functions of organizing the productive forces, the enterprise realizes the merging of material and subjective sectors. A person performing certain operations during the technological process acts as a personal factor. Objects and tools of labor are a factor material. The task of organizing production is to unite and ensure rational interaction and a combination of all participants in the technological process in time and space.
The functions of organizing the release of material goods also include actions aimed at establishing effective links between various divisions of the enterprise and the subjective sector. The relations that are formed between the factors of the technological process are complex and diverse. They include two subgroups. These include production and technical and socio-economic relations. The first type of relationship exists within the joint work of the members of the team. The basis of these links lies in the cooperation and division of labor. It is these conditions that separate the individual works and their performers. In this connection, there is a need to establish links between them. This task is part of the management function of the organization.
In the production process, there is a need to create certain conditions. This is another function of the organization. On the basis of all parts of the technological process, the necessary conditions created contribute to the work of the enterprise as a single complex and increase the staff's interest in the results of their work. This function of organizing the production cycle is based on socio-economic relationships between people, which are characterized by the form of appropriation of production assets.
The enterprise is called upon to seek a solution to the issue that allows creating all the necessary prerequisites that will play a major role in increasing the quality of the work of working personnel, its socio-cultural and professional growth, and in strengthening the self-training of personnel. This refers to the basic functions of the organization of the production process.