Organization involves division of work among people whose efforts must be coordinated to achieve specific objectives and to implement pre-determined strategies. Organisation is the foundation upon which the whole structure of management is built. It is the backbone of management. After the objectives of an enterprise are determined and the plan is prepared, the next step in the management process is to organize the activities of the enterprise to execute the plan and to attain the objectives of the enterprise. The term organization is given a variety of interpretations. In any case, there are two broad ways in which the term is used. In the first sense, an organization is understood as a dynamic process and a managerial activity which is necessary for bringing people together and tying them together in the pursuit of common objectives. When used in the other sense, the organization refers to the structure of relationships among positions and jobs which is built up for the realization of common objectives. Without organizing, managers cannot function as managers. Organisation is concerned with the building, developing and maintaining of a structure of working relationships in order to accomplish the objectives of the enterprise. Organisation means the determination and assignment of duties to people, and also the establishment and the maintenance of authority relationships among these grouped activities. It is the structural framework within which the various efforts are coordinated and related to each other. The sound organization contributes greatly to the continuity and success of the enterprise. The distinguished industrialist of America, Andrew Carnegie has shown his confidence in an organization by stating that: “Take away our factories, take away our trade, our avenues of transportation, our money, leave nothing but our organization, and in four years we shall have re-established ourselves.” That shows the significance of managerial skills and organization. However, good organization structure does not by itself produce a good performance. But a poor organization structure makes good performance impossible, no matter how good the individual may be.