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 it.

If you aren't changing, it wont be working for long.

Who’s responsible for innovation?

Traditional areas such as R&D

Everyone in organization.

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

GlobalizationManagers 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 DiversityA workforce that’s heterogeneous in terms of gender, race,

ethnicity, age and other characteristics that reflect differences.

-EntrepreneurshipThe 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 about what’s important.

Culture sends contradictory messages about what is important

Most employees can tell stories about company history/heroes

Employees have little knowledge of company history or heroes

Employees strongly identify with culture

Employees have little identification with culture

Strong Connection between shared values and behaviors

Little connection between shared values 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.