Organization
2.1 INTRODUCTION: ORGANIZATION
Definition:
An organization is a systematic arrangement of people brought together
to accomplish specific goals. It is the framework within people work,
responsibilities are assigned, and coordination is established.
“Organization is the structure of relationships among individuals working
together for a common objective.”
Characteristics:
1. GROUP OF PEOPLE:- Organization exists only when people come
together.
2. COMMON GOAL:- All efforts are directed towards achieving a shared
objective (e.g., profit, service, growth).
3. STRUCTURE:- Clear hierarchy and division of work (e.g., manager,
accountant, clerk).
4. COORDINATION:- Smooth fowl of work through cooperation.
5. COMMUNICATION:- Information flows across departments and
levels.
Example:
CWG for BCom id an online educational organization with different roles:
Content Creator (Suresh), Video Editor, Graphic Designer, and Marketing
Support. All work together for a common goal – quality education.
2.2 STAKEHOLDER’S OUTLOOK ABOUT ORGANIZATION
Stakeholder are individuals or group that are affected by or can affect the
organization’s decisions, performance, and outcomes.
Types of Stakeholders:
STAKEHOLDER INTEREST IN ORGANIZATION
Owners Profit, return on investment, business
growth.
Employees Salary, job security, promotion, work
environment.
Customers Good quality products / services at
reasonable price.
Government Legal compliance, taxes, employment
creation.
Society Ethical behavior, CSR, environment
responsibility.
Example:
, When CWG for BCom offers free YouTube content and affordable paid
courses, it satisfies:
Students (customers) with good content.
You (owner) through reach and monetization
Society by promoting education
2.3 SCOPE OF ORGANIZATION
The scope of an organization is not limited to just business activities. It
applies to various domains:
1. BUSINESS ORGANIZATIONS
Aim: Profit
Example: Amazon, Reliance, Tata
2. NON-BUSINESS ORGANIZATIONS
Aim: Welfare, Education, Charity
Example: NGOs like CRY, Schools, Hospitals
3. GOVERNMENT ORGANIZATIONS
Aim: Public services
Example: LIC, Indian Railways, BSNL
4. INTERNATIONAL ORGANIZATIONS
Operate across countries
Example: United Nations (un), World Bank, WTO
5. RELIGIOUS & SOCIAL ORGANIZATIONS
Serve cultural and spiritual purposes
Example: ISKCON, Rotary Club
So, “organization” has wide applicability beyond just business.
2.4 FORMS OF ORGANIZATION
These refers to the legal structures under which a business is formed and
operated.
1. SOLE PROPRIETORSHIP
One-person ownership and control
Quick decisions, direct profits
Unlimited liability
Example: Local kirana store or tea stall
2. PARTNERSHIP FIRM
Two or more people with mutual agreements.
Shared profits, responsibilities.
Unlimited liability
Example: CA/CS firm with two partners
3. HINDU UNDIVIDED FAMILY (HUF)
Governed by Hindu Law
Eldest male (Karta) runs the business.
Liability is limited for members but unlimited for Karta.
2.1 INTRODUCTION: ORGANIZATION
Definition:
An organization is a systematic arrangement of people brought together
to accomplish specific goals. It is the framework within people work,
responsibilities are assigned, and coordination is established.
“Organization is the structure of relationships among individuals working
together for a common objective.”
Characteristics:
1. GROUP OF PEOPLE:- Organization exists only when people come
together.
2. COMMON GOAL:- All efforts are directed towards achieving a shared
objective (e.g., profit, service, growth).
3. STRUCTURE:- Clear hierarchy and division of work (e.g., manager,
accountant, clerk).
4. COORDINATION:- Smooth fowl of work through cooperation.
5. COMMUNICATION:- Information flows across departments and
levels.
Example:
CWG for BCom id an online educational organization with different roles:
Content Creator (Suresh), Video Editor, Graphic Designer, and Marketing
Support. All work together for a common goal – quality education.
2.2 STAKEHOLDER’S OUTLOOK ABOUT ORGANIZATION
Stakeholder are individuals or group that are affected by or can affect the
organization’s decisions, performance, and outcomes.
Types of Stakeholders:
STAKEHOLDER INTEREST IN ORGANIZATION
Owners Profit, return on investment, business
growth.
Employees Salary, job security, promotion, work
environment.
Customers Good quality products / services at
reasonable price.
Government Legal compliance, taxes, employment
creation.
Society Ethical behavior, CSR, environment
responsibility.
Example:
, When CWG for BCom offers free YouTube content and affordable paid
courses, it satisfies:
Students (customers) with good content.
You (owner) through reach and monetization
Society by promoting education
2.3 SCOPE OF ORGANIZATION
The scope of an organization is not limited to just business activities. It
applies to various domains:
1. BUSINESS ORGANIZATIONS
Aim: Profit
Example: Amazon, Reliance, Tata
2. NON-BUSINESS ORGANIZATIONS
Aim: Welfare, Education, Charity
Example: NGOs like CRY, Schools, Hospitals
3. GOVERNMENT ORGANIZATIONS
Aim: Public services
Example: LIC, Indian Railways, BSNL
4. INTERNATIONAL ORGANIZATIONS
Operate across countries
Example: United Nations (un), World Bank, WTO
5. RELIGIOUS & SOCIAL ORGANIZATIONS
Serve cultural and spiritual purposes
Example: ISKCON, Rotary Club
So, “organization” has wide applicability beyond just business.
2.4 FORMS OF ORGANIZATION
These refers to the legal structures under which a business is formed and
operated.
1. SOLE PROPRIETORSHIP
One-person ownership and control
Quick decisions, direct profits
Unlimited liability
Example: Local kirana store or tea stall
2. PARTNERSHIP FIRM
Two or more people with mutual agreements.
Shared profits, responsibilities.
Unlimited liability
Example: CA/CS firm with two partners
3. HINDU UNDIVIDED FAMILY (HUF)
Governed by Hindu Law
Eldest male (Karta) runs the business.
Liability is limited for members but unlimited for Karta.
