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Organization

A deliberate arrangement of people
to accomplish some specific
purpose.

Characteristics of Organization:
           •Distinct Purpose
           •Deliberate Structure
           •People
Forms of
   Organization
Sole Proprietorships

•A sole proprietorship is a one-man business.

•The owner is liable for all of the company's debts.

•The company's income is considered to be the owner's personal income and
must be reported on the owner's individual income tax return.

•The advantage of this form of business organization is simplicity--no
partnership agreements need to be signed, there are no corporate registration
formalities to perform, and there is no need for corporate formalities, such as
shareholder's meetings.
Forms of
Organization
General Partnerships

•In a general partnership, the business is owned by two or more general
partners.

• Each of the partners is liable for the debts of the business.

• Although the partnership must file a separate tax return, each general
partner is required to report his pro rata share of the partnership's
income on his individual income tax return.

• A partnership agreement is a practical necessity for this form of
business organization.
Forms of
Organization
Corporations

•A corporation is a limited liability entity that is treated as a separate legal
person for tax purposes.

•Despite not being natural persons, corporations are recognized by the law to
have 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 on
the 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
    Organization

Limited 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 Organization


Attitude toward change   If its working, don’t change   If you aren't changing, it
                         it.                            wont be working for long.

Who’s responsible for    Traditional areas such as      Everyone in organization.
innovation?              R&D

Main Fear                Making Mistakes                Not Learning; not adapting


Competitive advantage    Products and Services          Ability to learn, knowledge
                                                        and expertise.

Manager’s Job            Control Others                 Enable others
Current Trends and Issues

Globalization
          Managers are no longer constrained by national borders.

(McDonald's 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 response
to opportunities.
Organizational Culture
The shared values, principles, traditions and
ways of doing things that influence the way
organizational members act.
Dimensions of Organizational Culture
Strong Cultures                        Weak Cultures

Values widely shared                Values limited to a few people – Usually
                                    top management

Culture conveys consistent messages Culture sends contradictory messages
about what’s important.             about what is important

Most employees can tell stories     Employees have little knowledge of
about company history/heroes        company history or heroes

Employees strongly identify with    Employees have little identification with
culture                             culture

Strong Connection between shared    Little connection between shared values
values 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 never
surprised.

•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 the
future.

•If you want to get to the top here, you have to be a team player.
Socialization

The process that helps employees adapt to the organization’s culture.

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Mgt

  • 1. Organization A deliberate arrangement of people to accomplish some specific purpose. Characteristics of Organization: •Distinct Purpose •Deliberate Structure •People
  • 2. Forms of Organization Sole Proprietorships •A sole proprietorship is a one-man business. •The owner is liable for all of the company's debts. •The company's income is considered to be the owner's personal income and must be reported on the owner's individual income tax return. •The advantage of this form of business organization is simplicity--no partnership agreements need to be signed, there are no corporate registration formalities to perform, and there is no need for corporate formalities, such as shareholder's meetings.
  • 3. Forms of Organization General Partnerships •In a general partnership, the business is owned by two or more general partners. • Each of the partners is liable for the debts of the business. • Although the partnership must file a separate tax return, each general partner is required to report his pro rata share of the partnership's income on his individual income tax return. • A partnership agreement is a practical necessity for this form of business organization.
  • 4. Forms of Organization Corporations •A corporation is a limited liability entity that is treated as a separate legal person for tax purposes. •Despite not being natural persons, corporations are recognized by the law to have 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 on the 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.
  • 5. Forms of Organization Limited 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.
  • 6. Traditional Organization Learning Organization Attitude toward change If its working, don’t change If you aren't changing, it it. wont be working for long. Who’s responsible for Traditional areas such as Everyone in organization. innovation? R&D Main Fear Making Mistakes Not Learning; not adapting Competitive advantage Products and Services Ability to learn, knowledge and expertise. Manager’s Job Control Others Enable others
  • 7. Current Trends and Issues Globalization Managers are no longer constrained by national borders. (McDonald's 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.
  • 8. 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 response to opportunities.
  • 9. Organizational Culture The shared values, principles, traditions and ways of doing things that influence the way organizational members act.
  • 11. Strong Cultures Weak Cultures Values widely shared Values limited to a few people – Usually top management Culture conveys consistent messages Culture sends contradictory messages about what’s important. about what is important Most employees can tell stories Employees have little knowledge of about company history/heroes company history or heroes Employees strongly identify with Employees have little identification with culture culture Strong Connection between shared Little connection between shared values values and behaviors and behaviors.
  • 12. How employees learn Culture? •Stories •Material Symbols •Language
  • 13. 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 never surprised. •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 the future. •If you want to get to the top here, you have to be a team player.
  • 14. Socialization The process that helps employees adapt to the organization’s culture.