OrganizationA deliberate arrangement of peopleto accomplish some specificpurpose.Characteristics of Organization: •Distinct Purpose •Deliberate Structure •People
Forms of OrganizationSole Proprietorships•A sole proprietorship is a one-man business.•The owner is liable for all of the companys debts.•The companys income is considered to be the owners personal income andmust be reported on the owners individual income tax return.•The advantage of this form of business organization is simplicity--nopartnership agreements need to be signed, there are no corporate registrationformalities to perform, and there is no need for corporate formalities, such asshareholders meetings.
Forms ofOrganizationGeneral Partnerships•In a general partnership, the business is owned by two or more generalpartners.• Each of the partners is liable for the debts of the business.• Although the partnership must file a separate tax return, each generalpartner is required to report his pro rata share of the partnershipsincome on his individual income tax return.• A partnership agreement is a practical necessity for this form ofbusiness organization.
Forms ofOrganizationCorporations•A corporation is a limited liability entity that is treated as a separate legalperson for tax purposes.•Despite not being natural persons, corporations are recognized by the law tohave rights and responsibilities like natural persons ("people").•Corporations are conceptually immortal but they can "die" when they are"dissolved" either by statutory operation, order of court, or voluntary action onthe part of shareholders. *Securities and exchange commission *Shareholder - is an individual or institution (including a corporation) that legally owns any part of a share of stock in a public or private corporation.
Forms of OrganizationLimited Liability Company (LLC)•Owners have limited personal liability for the debts and actions of the LLC.•Owners of an LLC are called members.•Since most states do not restrict ownership, members may include individuals, corporations,•other LLCs and foreign entities.• There is no maximum number of members.
Traditional Organization Learning OrganizationAttitude toward change If its working, don’t change If you arent changing, it it. wont be working for long.Who’s responsible for Traditional areas such as Everyone in organization.innovation? R&DMain Fear Making Mistakes Not Learning; not adaptingCompetitive advantage Products and Services Ability to learn, knowledge and expertise.Manager’s Job Control Others Enable others
Current Trends and IssuesGlobalization Managers are no longer constrained by national borders.(McDonalds sells burger in China, Call Centre Based in the Philippines.)*Working with people from different cultures.*Movement of Jobs to countries with Low-Cost Labor.
Current Trends and Issues-Ethics-Workforce Diversity A workforce that’s heterogeneous in terms of gender, race,ethnicity, age and other characteristics that reflect differences.-Entrepreneurship The process of starting new business , generally in responseto opportunities.
Organizational CultureThe shared values, principles, traditions andways of doing things that influence the wayorganizational members act.
Strong Cultures Weak CulturesValues widely shared Values limited to a few people – Usually top managementCulture conveys consistent messages Culture sends contradictory messagesabout what’s important. about what is importantMost employees can tell stories Employees have little knowledge ofabout company history/heroes company history or heroesEmployees strongly identify with Employees have little identification withculture cultureStrong Connection between shared Little connection between shared valuesvalues and behaviors and behaviors.
How employees learn Culture?•Stories•Material Symbols•Language
How culture affects managers•Look busy even if you are not.•If you take risks and fail around here, you will pay dearly for it.•Before you make a decision, run it by your boss so he or she is neversurprised.•We make our product only as good as the competion forces us to.•What made you successful in the past will make us successful in thefuture.•If you want to get to the top here, you have to be a team player.
SocializationThe process that helps employees adapt to the organization’s culture.