Lecture 08

Lecture: 08

ORGANIZATION

Definition:

                  An organization in its simplest form is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals (Carter McNamara, 2016).

OR

    

Stable associations of persons engaged in concerted activities directed to the attainment of specific objectives (Egon Bittner, 2016)

TYPES OF ORGANIZATION:

                 There are different forms and types of organizations, depending upon the decision about the ownership and control of business which are as follows;

1.      Individual Owner (or sole proprietor).

2.      Partnership

3.      Company (Joint Stock)

4.      Co-operative Societies.

5.      State Enterprise.

1.      Sole or Individual Owner (or sole proprietor).

It is the oldest, the simplest and the most common form of business organization. In this form, a single person is the organizer of the business. He provides land, labour and capital. If capital is insufficient, the owner borrows funds. Similarly, land may be taken on rent. The owner may perform labour him/her self or get help of his/her family members or may hire other workers. The owner is alone responsible of everything right from the planning of production to final sale of goods. Any profit or loss will be borne by the individual proprietor.

2.      Partnership

    

    When two or more than two persons join to run a business, it is called partnership. In this, there is common and shared responsibility about profit or loss. Partnership generally takes place among those persons which are either relatives, friends or any other know person. Partnership are created through agreements in which the ownership shares and duties of each partner are specified.

3.      Company (Joint Stock)

  

    Company is the most important modern form of business organization, formally called joint stock company. The company is commonly known as ‘limited company’. There are many large scale enterprises which cannot be run on the basis of individual proprietorship or partnership. Huge amount of capital is needed which is collected through joint stock company. When a number of persons, who may be unknown to each other, join together to invest their capital in some common business, it is called joint stock company.

4.      Co-operative Societies.

      A co-operative society is a voluntary association started with the aim of service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals. These are generally formed by the poor people or weaker section people in the society. It reflects the desire of the poor people to stand on their own legs or own merit.

5.      State Enterprise.

   State enterprise are those industrial and commercial undertakings which are owned and run by government. Some of these consist of public utilities such as postal services and some are just like joint stock companies e.g. WAPDA and PIA. There are some undertakings which are partially owned by the government. All the activities of the state which are related to production of economic goods are called public sector organizations.