LThe busniess organization
Organization are social arrangements for controlled
performances or collective goals – Buchanan and
Huczynski
Key aspects of definition
Collective goals
Social arrangements
Controlled performance
Why do we need organizations
Organization enables people to:
Share skills and knowledge
Specialize
Pool resources
This results in synergy where the organization achieve
more than the individuals could on their own
Different types of organization
Commercial vs not for profit
Commercial organization
Commercial (or profit seeking) organizations see their
main objectives as maximizing the wealth of their owners
3 forms commercial company can take
o Sole traders
o Partnerships
o Limited liability company
Private limited companies
Organization are social arrangements for controlled
performances or collective goals – Buchanan and
Huczynski
Key aspects of definition
Collective goals
Social arrangements
Controlled performance
Why do we need organizations
Organization enables people to:
Share skills and knowledge
Specialize
Pool resources
This results in synergy where the organization achieve
more than the individuals could on their own
Different types of organization
Commercial vs not for profit
Commercial organization
Commercial (or profit seeking) organizations see their
main objectives as maximizing the wealth of their owners
3 forms commercial company can take
o Sole traders
o Partnerships
o Limited liability company
Private limited companies