The benefits of a sound organisation are discussed below : 

Benefits of Specialization : Organisation is based on division of work which leads to specialization. In other words, jobs are created which require special qualifications, training and aptitude. People are appointed on the jobs on the basis of their area of specialization. This would lead to efficiency in performance and better quality’.

Clarity of Working Relationships : Organisation helps in creating well defined job and also clarifying the limits of authority and responsibility of each job. Thus, everybody working in the organisation knows the amount of authority and responsibility associated with his job. This would help in reducing conflicts over use of authority by different people in the enterprise and avoid confusions and duplication of work.

Optimum Utilization of Resources : Organisation leads to creation of distinct jobs and departments by systematic division of various activities. This would help in avoiding duplication of efforts and overlapping of duties among various individuals and departments. As a result, there would be optimum utilization of all kinds of resources.

Social Environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preferences and education level of the people living in the society where business exists.

The businessman cannot overlook the components of social environment as these components may not have immediate impact on the business but in the long run the social environment has great impact on the business.

For example, when the Pepsi Cola Company used the slogan of “Come Alive” in their advertisement then the people of a particular region misinterpreted the word “Come Alive” as they assumed it means Coming out of Graves. So, they condemned the use of the product and there was no demand of Pepsi Cola in that region. So, the company had to change its advertisement slogan as it cannot survive in market by ignoring the sentiments of the people.