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The Structure of
Organizations
NAME : WAQAR AHMAD
Outline
 Introduction
 Legal form of organization
 Types of Organizations
 Companies
 Management of an organization
Organization
It is a group of people to accomplish some task. Such as a
Universities and companies etc.
Purpose of Organization :
 Mission
 Vision
 Values
Purpose of an organization
Mission:
The mission statement describes what the organization needs to do now to achieve the vision
Vision:
The vision statement describes where the organization wants to be in the future
Value:
The values statement defines what the organization believes in and how people in the organization
are expected to behave—with each other, with customers.
Structure of organization
A system used to define a hierarchy within an organization. It
identifies each job, its function and where it reports to within the
organization.” A structure is then developed to establish how the
organization operates to execute its goals.
Legal forms of business
organization
WHAT IS A BUSINESS ORGANISATION
DEFINATION:
The term "business organization" refers to how a business is
structured and how their structure help them to meet goals.
Organizational Forms determined by :
Owner’s Objectives:
 Liability,
 Profit Distribution,
 Taxation
 Capital Structure Distribution
Dealings with Outside World:
 Other Owners
 Employees
 Customers
Legal forms of business organization
Organizational Forms determined by :
Owner’s Objectives:
 Liability,
 Profit Distribution,
 Taxation
 Capital Structure Distribution
Dealings with Outside World:
 Other Owners
 Employees
 Customers
Legal forms of business organization
Types of Commercial
Organizations
Types of Commercial Organizations
 Sole Trader
 Partnership
Sole Trader
 The organization which is owned, managed, supervised and controlled by one
person is known as Sole Trading Concern.
 This organization is as old as human civilization.
 It is simple type of organization in which one person brings his capital, controls
the business and bears all the risks.
 The profit and losses are also enjoyed by one person only.
Advantage & Disadvantages
Easy to start Unlimited liability
Better control Difficult to raise capital
Ownership of all profits Loss in absence
Easy decision-making Limited life
Partnership
 The organization which is owned, managed, supervised and controlled by two or more
persons is known as 'Partnership Firm’.
 Each owner individually is known as partners and all the partners jointly are known as
Firm.
 Partnership is generally identified by the Firm name.
 The profits and losses are shared by the partners as per agreement.
 The liabilities of partners is unlimited, joint and several.
Advantage & Disadvantages
Easy to start Unlimited liability
The ability to raise funds Transferability is difficult
More skilled persons Limited life
Loss sharing Profit sharing
No loss in absence
What is Company
What Is a Company?
 A company, is a legal entity made up of an association of people, be
they natural, legal, or a mixture of both, for carrying on
a commercial or industrial enterprise. Company members share a common
purpose, and unite to focus their various talents and organize their collectively
available skills or resources to achieve specific, declared goals.
Types Of companies
 Royal Chartered Companies
 Royal Chartered Companies are companies created by the Royal Charter. they are
granted power or a right by the monarch or by special order of a king or a queen.
 Registered Or Incorporated Companies
 companies which are incorporated under the companies act passed by the
comes under this head. Google India Pvt Ltd is an example of incorporated
 Public Limited Company
 a Public Limited Company is separate from its members (shareholders) and the
of its members is also limited. Its existence is thus not affected by the retirement or
death of its shareholders.
 Private Limited Company
 Private Limited (Pvt Ltd) companies have more than 2 and less than 50 members and their
liability is limited or unlimited depending on the type of the company it is.
 Limited By Shares
 The liability of the shareholders is limited to the extent of the face value of shares held by
them. Most Pvt Ltd companies are of this type.
 Limited By Guarantee
 In these companies, in case of liquidation, the shareholders promise to pay a certain fixed
amount to cover the liabilities of the company.
Company Constitution
 A company constitution is a document that generally specifies the rules
governing the relationship between, and activities of, the company and its
shareholders.
 Share capital
Share capital refers to the funds that a company raises in exchange for issuing an
ownership interest in the company in the form of shares.
 Company directors
Company directors are responsible for the management of
their companies. They must act honestly and promote the success of the
business and benefit its shareholders.
Memorandum of Association (MOA)
 A Memorandum of Association (MOA) is a legal document prepared in the
formation and registration process of a limited liability company to define its
relationship with shareholders.
 Legal Name of the Company
 The name clause requires you to state the legal and recognized name of the
company.
 Address of the Registered Office
 The registered office clause requires you to show the physical location of the
registered office of the company.
Objectives of the Company
 The objective clause requires you to summarize the main objectives for
establishing the company with reference to the requirements for shareholding
and use of financial resources.
 Liability of Shareholders
 The liability clause requires you to state the extent to which shareholders of the
company are liable to the debt obligations of the company in the event of the
company dissolving.
 Authorized Share Capital
 The capital clause requires you to state the company’s authorized share capital,
the different categories of shares and the nominal value (the minimum value per
share) of the shares.
Organization Management
Organization Management
 The process of organizing, planning, leading and controlling resources within an
entity with the overall aim of achieving its objectives. The organizational
management of a business needs to be able to make decisions and resolve issues
in order to be both effective and beneficial.
Importance of Organizational
Management
 A business should place a priority on establishing solid organizational
management to create a company that clearly pursues goal achievement.
 Business leaders need to be clear on the goals of the company and implement
processes and procedures and are willing to monitor and adjust based on critical
feedback.
 When this happens, subordinates are clear on how to complete tasks.
Types of Organization Management
 Functional Organization
 Projected Organization
 Matrix Organization
Functional Organization
 In Functional Organization, people are grouped by areas of specialization.
 marketing professionals are grouped under marketing department.
 human resources professionals are grouped under human resources
department.
Projected Organization
 The entire company is organized by projects
 So the resources of the project are fully dedicated to the project activities.
 Project Managers have control on the projects
REFCENCES
 https://smallbusiness.chron.com/definition-organizational-management-
37684.html
 https://masterofproject.com/blog/7551/organizational-structure-types-in-
corporate-
companies#targetText=There%20are%20three%20types%20of,organizational%2
0structures%20one%20by%20one.
 https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/reading-mission-vision-and-values/
 https://www.youtube.com/dswasdihygbfaf/php?/
THANK YOU

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The Structure of organizations

  • 2. Outline  Introduction  Legal form of organization  Types of Organizations  Companies  Management of an organization
  • 3. Organization It is a group of people to accomplish some task. Such as a Universities and companies etc. Purpose of Organization :  Mission  Vision  Values
  • 4. Purpose of an organization Mission: The mission statement describes what the organization needs to do now to achieve the vision Vision: The vision statement describes where the organization wants to be in the future Value: The values statement defines what the organization believes in and how people in the organization are expected to behave—with each other, with customers.
  • 5. Structure of organization A system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization.” A structure is then developed to establish how the organization operates to execute its goals.
  • 6.
  • 7. Legal forms of business organization
  • 8. WHAT IS A BUSINESS ORGANISATION DEFINATION: The term "business organization" refers to how a business is structured and how their structure help them to meet goals.
  • 9. Organizational Forms determined by : Owner’s Objectives:  Liability,  Profit Distribution,  Taxation  Capital Structure Distribution Dealings with Outside World:  Other Owners  Employees  Customers Legal forms of business organization
  • 10. Organizational Forms determined by : Owner’s Objectives:  Liability,  Profit Distribution,  Taxation  Capital Structure Distribution Dealings with Outside World:  Other Owners  Employees  Customers Legal forms of business organization
  • 12. Types of Commercial Organizations  Sole Trader  Partnership
  • 13. Sole Trader  The organization which is owned, managed, supervised and controlled by one person is known as Sole Trading Concern.  This organization is as old as human civilization.  It is simple type of organization in which one person brings his capital, controls the business and bears all the risks.  The profit and losses are also enjoyed by one person only.
  • 14. Advantage & Disadvantages Easy to start Unlimited liability Better control Difficult to raise capital Ownership of all profits Loss in absence Easy decision-making Limited life
  • 15. Partnership  The organization which is owned, managed, supervised and controlled by two or more persons is known as 'Partnership Firm’.  Each owner individually is known as partners and all the partners jointly are known as Firm.  Partnership is generally identified by the Firm name.  The profits and losses are shared by the partners as per agreement.  The liabilities of partners is unlimited, joint and several.
  • 16. Advantage & Disadvantages Easy to start Unlimited liability The ability to raise funds Transferability is difficult More skilled persons Limited life Loss sharing Profit sharing No loss in absence
  • 18. What Is a Company?  A company, is a legal entity made up of an association of people, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. Company members share a common purpose, and unite to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.
  • 19. Types Of companies  Royal Chartered Companies  Royal Chartered Companies are companies created by the Royal Charter. they are granted power or a right by the monarch or by special order of a king or a queen.  Registered Or Incorporated Companies  companies which are incorporated under the companies act passed by the comes under this head. Google India Pvt Ltd is an example of incorporated  Public Limited Company  a Public Limited Company is separate from its members (shareholders) and the of its members is also limited. Its existence is thus not affected by the retirement or death of its shareholders.
  • 20.  Private Limited Company  Private Limited (Pvt Ltd) companies have more than 2 and less than 50 members and their liability is limited or unlimited depending on the type of the company it is.  Limited By Shares  The liability of the shareholders is limited to the extent of the face value of shares held by them. Most Pvt Ltd companies are of this type.  Limited By Guarantee  In these companies, in case of liquidation, the shareholders promise to pay a certain fixed amount to cover the liabilities of the company.
  • 21. Company Constitution  A company constitution is a document that generally specifies the rules governing the relationship between, and activities of, the company and its shareholders.  Share capital Share capital refers to the funds that a company raises in exchange for issuing an ownership interest in the company in the form of shares.  Company directors Company directors are responsible for the management of their companies. They must act honestly and promote the success of the business and benefit its shareholders.
  • 22. Memorandum of Association (MOA)  A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders.  Legal Name of the Company  The name clause requires you to state the legal and recognized name of the company.  Address of the Registered Office  The registered office clause requires you to show the physical location of the registered office of the company.
  • 23. Objectives of the Company  The objective clause requires you to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources.  Liability of Shareholders  The liability clause requires you to state the extent to which shareholders of the company are liable to the debt obligations of the company in the event of the company dissolving.  Authorized Share Capital  The capital clause requires you to state the company’s authorized share capital, the different categories of shares and the nominal value (the minimum value per share) of the shares.
  • 25. Organization Management  The process of organizing, planning, leading and controlling resources within an entity with the overall aim of achieving its objectives. The organizational management of a business needs to be able to make decisions and resolve issues in order to be both effective and beneficial.
  • 26. Importance of Organizational Management  A business should place a priority on establishing solid organizational management to create a company that clearly pursues goal achievement.  Business leaders need to be clear on the goals of the company and implement processes and procedures and are willing to monitor and adjust based on critical feedback.  When this happens, subordinates are clear on how to complete tasks.
  • 27. Types of Organization Management  Functional Organization  Projected Organization  Matrix Organization
  • 28. Functional Organization  In Functional Organization, people are grouped by areas of specialization.  marketing professionals are grouped under marketing department.  human resources professionals are grouped under human resources department.
  • 29. Projected Organization  The entire company is organized by projects  So the resources of the project are fully dedicated to the project activities.  Project Managers have control on the projects