According to the **microeconomic** definition of organizations, an organization is seen as a means by which primary production factors are transformed into outputs consumed by the environment. microeconomic macroeconomic sociotechnical behavioral
Explanation:
In microscopic definition of organizations , the primary production factors provided by the environment (labor and capital) are transformed through the firm through the production process into products and services. Thus the words thus used complement one another.
Microeconomics actually deal with the decisions of people on a small scale. So it deals with the way in which the means of production and distribution of goods are organized.
Its analysis explains the behaviour of individuals and organizations in a given economy.
