eX INDUSTRIAL. MANAGEmenT ® GENERAL MANAGEMENT UNIT-7 Business 16 an economic, activily Tt literally Means “bein busy" Business ackivily ke clatified ints (ay Treuatny and b) Commerce Tndusea- The tev Industy AchevA & thar Part Ff budiness ackutly phich ia concerned Istth the Aaising Phoduction, Processing ey fabrication of Procucha- mbes 1 Trduaties: | © Extractive Tacustyy ; Be Mining , Fishing Agni chkture ete “) Genetic Indust & Poulty, cattle breedi , Nurseries multiplying ord Aelling plont, ete. S) Conthuction Industry: Bi Construction °F builelings incl dams, buidge WV) Service thelusty oes Banking , Tnburance , trong port and aly Service” Such as Doctors , Lawyers ete WP Manufachaing rusty St: Tron and Skel 9, ; veel | textile tnduubsy, Machinery ond appliances Tocuatny etc. Prrkestin)by Commerce! Cemmeyce Wan AYanlged ache tshere by cypods cyte dvansfervel ty those tcho need ther - tT) Sivple wowk = Bnduat involves, the Procuctian 4 qeods, rhile He Commeree % mar Concerned bstth their dushibukien- | Manas ement Ditberent Authors have defined the term “Manogement” in dabfevent ws NManagement i am oxt ty getting things done Frrough the! efferts a other people’. “Management isan att and Science %} decision making and leadership! “Management is the art knowing hot you honk “te do in the best and cheapest wow & LEVELS oF MANAGEMENT : Ao exqainisodion m howe verviouk levelk 4 Management » The term “Level” involves peraong axvanged na Aevies. 1) Top LEVEL MANAGEMENT 4e This Management Conkdidtt “¢ Ownevd, Board sy Divectoys , Manoging Divectoy | Generel Manegey chief BecutVe , Financier, || Share holders, Secretaries ete. « | The May Panctiens 4 Top evo} Manoge Kenk| ® » Ae a) do Acker mine Ihe ShTechves by To fermulate pskeies SV AO SE CNQIN Meh onal frame Won A) To Co-cvelmote thx Aekourcea (5 m/s) 2) MIDDLE LEVEL MANAGEMENT: — TKS conadts ef functional heads Auth ads Procluction Manager, Marketing Manoger, Finanu.s . Manasey etc: The main functions it micldle level Manacemeuk ave a) Interpreting the pélicce frames b tep manceenet b) Mokivaking Perécmnel b achieve highay Produetrale ©) LOWER LEVEL ManAgemenT ThA Conciahy v7 Superinten dents Foye man etc ; Supervisors, The tain Punch a Lowey level a) T Corny funchions ay mom b) te GE Wha Lev done thro cy Te ihe 4b the Specific Moma sem ent are enl- ugh he Lov kevA Yob te Workers.7 ADMINISTRATIVE PRINCIPLES OF MANAGEMENT . SNR FAYOL Henry Fayot , a French Engineey itho ras conticlered as the father % Modern Management thao das fovmulatad 14 Principles Maneeg erent » Hie usvk tS concentyolad itth the higher “level, a ergamigadion + Accerching te Aim, “the Principles 4 mai ment Ahould Le’ Plecible , but not absehet,. The VXious Principles 4 Mansgenient oe : y) Division of klork - > Autthosily amd Response Lite 3) Discipline A) unily &] commond S§) Uni Diveck on ©) Subordination J kidlistdual @nteretr ts quieal Bnberest 1) Remunevodion of Perhonnel | gy Centrealisekion + Autho ily 9) Scalay chain re Jo) Oreley Nn) Equily 12) Stebilify of tentive ef Personnel 13) Tnitiokve. la) Expivit’ de coxps TE mean dividing tke Wok ownong Vevvioug clepantmenta hich dy te Specolination ak all level, and qves higher Proolu etttiyy and increasesSs the Skill of the sorkell. | 2) Authoity ond Responsibly — 7 These two ave intervelated, Author ly 13 Ihe | Pouey the managey te clelegate and contyet He Subordimolés. Responsibilily ix the dul of the. manager | fe implement the poticies Of tas mi ment. Roth | af these musk go tegethay. Authority Withouk Aespensibilk | leak b ise Aponsible Lehaviour, while Aesponsibil | © ast ouk authori ly makes a Perhoy ineleckye. © 8) Dikeipline — i: Discipline iw obeying amd Mo¥ki are kk tabuckons and evders eviovd « Rules Aiseipline ave intended facilitate th Work, but not 7% embrace tha Worker: This ia edsentral for | effective management anal Smooth ae + busines. A) Unila. of Command i | An employee Ahould Aeceive exdlers from only erioy Which means that the bovkey Ahould net be! under tka contret, Sf more than one Superior, 5) unily of Rivection .- Thia Means thak each pup achyities having Aame ebiechive mutt have one head and cne play | uni Command connot function pstthout til + hick. | O Resinahion f Delividusa) totever: te geal Sleet- The interest of be form asa thele i6 more. important than tha interett ef an individual or Pop F Pertons.ee - a. Sess 7) Remuneration Sy Perdonnel :— a | The Salasies and Wages Paid fe Ihe employees for thety Kevurces Should hear omd Ahold ee morimun Satisfaction both te lhe employee and the. employey 8) centralisation of Authodily — ae . ° | TE mean Concentyatian authorily th, Ha handy of a Ainge peydon oy fen Persend ie; Lst.tt, ep ma -They have tha Power % Control he ovey eee “o c 9) Scalay chain: DE Shows to line of authorily Prom top executive ts He Lowest one & facthtale eérnmunication. Some Limes this Lne may ke thot circuited for avoidance of delay. 10) Over Thea principle i’ Concerned Lh matertak and Pevbont. Maderal orcler mean "a Praper place Ly uc tinge and every thing nik place". Soceal crdley ait. & aa "place fey even one and every one 1s hig Place’ DE means thak “ae man intte Aro, Aight matercel i in Aol ploce : GM Seb ond isa sane bei Et Hold gt al “ motes With Kindne and Justice by tre. monager, Thid wraker the employces ours loyal to like managanent and deveted 4a the useyk& (1) stabil of Henure of personnel | etable and Secure Work farce 14 NECE Aer i Aeduce Unnecesdary turnover fey achieving effiiier pshich is necemany for successful organisation. | 19) Tnibiative -— Thikiative 1s freedom te think out plan. nrorkerd bho Come method, idea u Encouragement bell be given to tee fornard voldtartly Jo propose new b | oy change: {(uelantentls 14) Bepivit de Corpa:— , . — ass tshich means" Union 1% lees that dhere Ahould his Ka French word | Hee merbard Strength". Thus Prineeple ump be Co- epevation an of the organisation. Chis cvectas under s tancing among worked + harmon t and & SCIENTIFIC MANAGEMENT. - Fw. Tarte, he term Scientific Management contains tye _sexels namely- Scientific and Management. The berm Management" “means getting the things clone through others and Scienbifcc” means systematic, analytic and ebrective approach. Hence ‘Scientific mancyere ts th AL PH noni ng: Ocal that is te ke rn and tke best bea Of cleing iE . F- W. Tay Loy popular hy known as faith of Seienti fre Manarement tad, He fevst man doi —~# advweale a Scientific Management and & Setence a Aeng ue. | Fearures of SCIENT! Fic MANAGEMENT :— 1) TE ib a Systematic, analytical ond obtective approach te Adve indudtyics prodler). fay Te implies Scientitic techniques im method Sf Work , | Aecyuikment, Selechton and training Workens. (3) Tk altempts fe cliscover ths beat method oY sing | a tor au cheapest Coit | 4) Te invelves a complelé | a workers cA well as tt Mma 5) 1k attempts ty develop each man b is qreabett epficieny omd Prorpenity : PRINCIPLES OF SCIENTIFIC MANAGEMENT, ee 2 nthe mental attitude _Seventitec Wargement aims & clevelop each man ts hid qieatese efficiency and pYodpevity . ypde ebyeck 1 b& increase Pkoduchoy and Maxi nts Prreperi both for emplayer and erplayee ‘The VaALoUS Prec pl of Scientifit! management ave reeprek | To Ferd the Wale and Ue Caude and & ekminale te Wastage able odcertaining Ha Readsons for it, 170 lower fro cost Ff Preduck Cy : pover contumen, f oo nel Aare. Pevehasig | 3) To achieve higher Phoduct on . 4) To paoutde breathed and ebbi cient Lerk force6 5) To unila higher Wages Wtlh Aedluced Labour cost. 6) To Standardise Ihe melkocls , materi ef and en puipment and Working Concditcons- 3) To Select, train, beach and appolut Lwotkwnen scientifioly . LC g) To engure division of Work and hesgorsibibly 4) To Pdomelé co-operation Lotween employer & empl to) TO develop the bes Wop a doing Jot b¢ Condluctin werk Sted ADMINISTRATION *— Adminisbration 1 that funchion of an enterprise Ihich deferneines fhe overall obTectives and poticies . Tt ba determinative oy olivective Funck'on MANAGEMENT :— Managemeut 18 that function tthich puts, the polices of tke Administration inls achion + TE Kan exectttive cY deing funch'on ORGANISATION :~ exganihara Is fie frame Work of manag erent Tt is the Systematic anrangemeut of people ina group The helabon between te above three terms are "The Management Carries cut the policies laid cewn by tk, adminadtyati. : Chganisartion, eee? through tha frame Work of| ee _ a 3 \ FONE TIONS OF MANAGEMENT 08 MANAGER | He mi Fay ol ctizeuned the Ffunch'ons af Manage - ment which includes Planning, Or anising, Stadteng, Co-ordinating, Reporting and Budge ing. Broadly Speaking the functions of Maragerneut Canke clamifeed inle my Operertin FunctionA Conssténg of a) Mocluction b) Marketi ce) Financial d) Personnel e) Material’ ond f) offece 2) Managerial Funckons Comisting of a) Planning b) organ ira c) stahping el) clivecting €) Co-ctdinehing — f) Contrafling ) Fore canting -— : a term which is included fn planning « re ik the eAtimation of fidure Work duch a eAdtimreifey of qpantities, Sales, Purchase, Finance , cost, Profit and los ete Which is necessary fos Planning « ~ 2) Planning :- a planning ia thinking and deciding Inacdvance Ly future action + Plannin ain at elimanaction of heatye rials , dleness oy men, machine and money - Moke | “t clecides inadvance What bo cdo, when te do, | planné ys te bo Produced by whom. how to Ye, and how much 20 fe | ll | he primary obrect 4 planning Kk & achieve beiter | Results: | Ni bsng »— | > ee fanchion ef management. Lt establishes TE Kw anotherLl © i the frame HovK. TE is the avrernig ement of men, materteda, machines and money th a Syttemotic ney fey tke actual execution of manufacture of & PAcduet. 4) Stabbing’ TE vs the more important funckions of manag emenk since every thing i te be carried cuk by the Feople and ib commat Raat estthout pecple. Stabtiy a process of selecting Aight people , thelr Aran and ihely Placement nv oxganieahon bruce With Suitable Remuneyas.on + S) Divecting ig called “Management in ackon ae Diyech oe | comets of 29 Giving PYOPST inatyuchiond b) Geploining nevk ¢ Giving Proper training Various mM oy a) Guiding tre, Subcrclivetes a) Co-ordination \— | TC the achievement of harmony ond integroton | among ifgerent types oY wovkerA are engaged | 4H, common ebgect of Producing porticuley Preoluct Co-ordination means Lorking oy ackng together | fey a common purpose wth an understanding. | 7 contests TL mea qe © Weitching Ke achuches 4 Q@ Concern It is nece-siory jnovdey to endure that every thing ie carried cub accordins fe plan: So conti ig a proces Which enabler anager taget is policies implernentec| 1 ep) pp aoe ees ere eee y-FORMS OF Business OWNERS HIPS nee The different types GF Busnes OunerAbapA are ) cele proprietorship organisation 2) Partney Ship ovqomidadtian 3) Joint Stock companies a) private Limited Compan b) public. Limiled COropant. LIABILITY <— / the *espondibi kalg of the owner te meet the Claim, of his creditorA ie knonn ar Liability : Laparred LIABILITY Thcoxre Joa, ith the Aight of tke crecitey oy money Le & Limiled & ouneyA Invedtment In the férms, the Liability 18 Bad f bo Limited. UALIWTED KIABILITY Th the crediley Aas Aeght te clot net only hosp hee invedtment inthe ftvm7 but alse on ; Miele athety akets, the ebulily ; unlimited’ ‘ “ ty Ve hak te be CaNeRSHIP:- De is the Adght of an imekiud individinal or o gus a wdividuals fe acaprive Legal title for ibe absets . &SOLE PROPRIETORSHIP! —~ Ru ik the earliest, the Simplest oad most familiar Porm of owyanisokton « This & quiet familiar for a Small Scale business - ; Definition: The Business orgemiachion which owned by a Single inclivicdual and Aun independently isith or Wkthowe hived Labour ts called Sale prepriete. qhavacten'Stics ov Featines oF Peprictershp LNT: ) TE ig Starkeg by tke initiatwe fa Single perron 2) The Liabilily is unlimited. 3) The Proprieley managed the Whele business himself. 4) He is motivates to @pPand his business activities. 5) He keep& all hia Lusiness Secrets oe himself . 6) The business and owner Qxiats beqe ey. 7) har Limilef area > operations. ) He supplies neceshary capital fo ke busines. 9) He makes all decrscou Aeparding tus busine’. Jo) He only bears props and” loses ghus a Sole proprietr ws the Sole ctiner, contyoller, fenanciey, crganisey, manager, clecition Misky and a Ask y. Advantages :— ; . 1 Formation ard disssludion b Cane and ineepentive 2) orgenibedi77 x Sire le Q 3) Ok wes Small Capi A) BUsMEK, Secrecy can be maintetrned 5) Quick and ormpt decisions car be fakon - 6) dt « free Government Aegulatons.PARTNERSHIP ORGANISATIONS ifs Disadvantages OO ete “y skill 4% lomiled expangiam onl mwclernisobion v4 lea » Mane erie 2) possibikily al due le Linniloef capital 2) Untimiled) bedi dlf makes hin te poy oll the debts out Of Mig perder Property in case, Losses. 4) Duration a the fem ie uncertadn ond the hike 4 tig business Linuled fo tha Like a the Proprietor. 5) RUK tn tha business in move. Because tf cert limitations nm tho Pro puietarship conceYn Asgorcli limiléd fénance, Limited monagertad Skill, Aidk in the business and ditficuty iw Aupervirson etc, thus partnership Come info Sciatonce Defenctiom ~~ "wecoreling bs Unclian partnership Act, Seckan WV , ak is defined a4 Heo Aelatemshsp betmees persons tho have need te Aharre Hx Capel ave profits of business caried m by af ov vy ene Gf them acting for oll Fhe Perbor’ Participedkrs In tho business are Called Partners and collectively Hho busines | is Coble) frym. partnerShip is based upon a bhiltern aveement. between fhe partners which is Knokn a4 partnership deed.® Ip Chayacteristics oy Features of RarbyerShip:— oe 1) The Pastnership formed aba Aedult of an agreement Letween tnd dy More Persons. 2) There musthe atleast ta persons b forma Rurtner ship concern + 3) The moximun number of Partners 4 10 incase benkirg business and 20 incote 5 thoy business. | 4) Pontnes agree. to carry on Aome business either | Parchate amd Sale of goods ey Prrducken & Sle of Grrl 5) partnera tb cany m busine Lith te obec Fy shving pols or Leses accorcling le ag reee| | Propovttons . 7 |G) partwers Bhould have Ut mest eco) Fath arnerg osthera. (4) There ig a Aestrichon aon transfer of Shave» | ©) Advantages 2 | 1) More capt, different. skill, and abilities are Poitille | 2) Direct conta? and close. Super Sin by the Partner aver the bukneds i Porkible 2) Ride ef business 6 Shaved by morethan one Person. 4) BpaAnkim ancl Gruth AF business actvily 4 easy, S$) Secrets canbe maintornod fey Some extent: Dikadwantages:— RDO 2- ) Resourced ove limil& ane) &xpansion thi cle . 2) death a parmer effect the continuily tke $i ¥m, Ieee eene Trea dissolves - 44 rana) Wansfer Sy Partnership is not Potable . | 4) Each partner blames other partner for tea. failure sto form s) Taucing decistms eel) be delayed: Types oF PARTNERS :- RRR Ae” ) General or Orclinary Partrers— He Porticipetes in tke Lovking of tke firm ond Aeapontible Tointly bath Other partners toy ell Liabilires. » Active of Managing Razeney ; Ne taices cctiye part th the businese of the firm anck manages UG abfaiws - Some times, he Wel) dvaw | Rome Salary inacdition fo hid Share oa profit. 2) Sleeping "partyer :— Ye cloey not take paor jh tha business « He Simply invests thom Shore? the Prebts and contribubey losses | &{ tha busied 4) Nominal Partney\— He neither invests tha, Cotta) nor Part ciprtes Th lke business oy Sharer the Profits «He 0 lends hid name te the forma. He ke a partner tn “name only: He ic Considered ad Partner Lec 4 Aas Aeputahion and cred bik “ S) Secyet Partner :— wee ; Ye tsi] bo Considered o4 partner and hare is no documenk } hig Partnership + He participates in tro management secretly. XYhh oo @ <) Linley Pavtner:~ a | Tie ts eng linited Linbility te he oxtnt op hea contyibuled capital for th. debtband j obligations y Tho Ferm 1) Minor Partner +— “he is tyentag os Minor partner Gipee he isnot ey mosurity « He cannot diredly enter ints he pareneySbuP augreement.« How ever ho i admitted te the benefits Parenership. on . attains maser , he istll be trealad qenerol partner: attaned te PARTNERSHIP DEED Sn RN The SucceAs Of the pocttner Ship Conceyh leper upon tke rautuol ene understind ing betwee the Partners: Tower t au id the Pesbidshohi Posh li & digputey ok Lote Sl5qe,, Ht i desualle ty moka an | cugveement ak tre time ay Formotion partnership echeevn: This HAdten agreement B nn ar "RaytnerSnip Deed’ Wars Containg terms and Condittors 4 ke PostneyStup and is te be Sign | ined by all partners ond Aeqistered i he | ‘Registra of Firms’. Partnordbap deed Contatn& 1) Name and Addvers Of the fem 2) Name and Peddredses 4 fhe partners 3) Nature Sf Burmness 4) Captie, contributed by wath partner and Aale intevest |S) Proportion 4] Prebits cred fessey that ave 1 Shared by each Partner etea OS Difference between Partnerships and Fropriefoyship re Re oe eee RAR —~ PARTNERSHIP PROPRIETORSH ip Toso OY More Person, enly One perdon Pastnership deed aeceAia No Registrate is necedtan fe @antast conititufe a 1 0 porter Ship Cencevh 28 All partneré Can Pasticintl 5) the business ig coutvolles ih lho. business (yy | by one eee ak A) The buiness Acck . 4) Whole Aésk & taka b at ee by Cee | Sole tyader 4 5) capital ig moye |e capttad ig Leiteg @s secre, awe tn the Kine ®) Comp lete 4 all the aa So _ Molntained: LM a Chance oa Secve cf Canbe : a vo 1) The Life a We firm & | 4) Bt fa bound 5 clase wt, more Certain. the ceoth a} Ike Poytney«| 6) JOINT STO Ci COMPANY 1- The Limited fenance camel heavy Abr, volved in the Sele Proprielarshdp cmd “Partner Hap Iipes 4 busines heads to he formetiog Totat Stock Compania The incYeased needs of meclern inclustng eee be met by other forms of busaneas, | Deptt om: | “Ft i an artocialion Py dividuals Collec & shore holders Who aqree Ao Aupply Ike. copthel | by puvehasing the Shares Of the Comperng for a specific business tebe Cubbies cut’ there are two tapes 4 Toit Stick compas a) private fimited compan b) publec Limi led Company - The Capital Aevpired bg the. Jount Stock & Company 14 aliveded inlé Aranrfperable Shores Of Amall Value Risto, 100, 1000 He and these Shares (ave sub Acri bed by the people .ghe holders 4 those | Shares ave Kndw7 ar "Share holders". these | Share holders ave entitled thecr Prcportionete share 4 probe and Wo voting Asght in electing the managing bedy Kntwn ab * Beard of Directors” who cre Aegponrible th potics making, jinpevteunt finances) and technica) olecisiong and efficient | nsrking of the Pirm+ Fo this, the kiakihilg a Share pei Ton 8 sod 9 tes thir © perbons sho take initiative jnaoe — a PRIVATE LIMITED JOINT STOck COMPANY ‘- Features: 1) Gy thes Mnintatins Number 4 perbond 2. cind fhe maximum 4 SD 4 Geneyally tro memberd of" tbe orpand are tho friends amd Adlativer “4 tho PYoneterA- 3) The trantley ef Shares wv Limited to the rnemben c | ay These ewe invariably converted fnls public Limited Company ib lhe buaines, smproves- ; | 5) The has FeWPAcg Atevedt unc ey the. “Tnclicn a Ack, }9456" ©) A private Hmiled Company need Nok make an Paospectus, Accourfd cmd othay Particulars open fe Public » Buk Ihe members ore entitled b Aeceive a copy a} belance Sheet « e 4) The Directors maintain Secrecy of business alpairs. 8) The Word "Drivate Limited” i, U8ed at the end A) ths name OY thy Company « Most ef the mediuny Sized industnes ave Aun In this manner. PUBLIC LIM)TED JOINT STOCK COMPAN ¥ :- uo, — ~ ~~ WS RAR RARE OR | Seckory 3(1) WW) o) Tneltom Companres Act, 1956 Acys that oll Compcnied other than pscvaté C ompamied ow ave Called " public dimitey Companies "Featured .— now at oy e° 2) The WAKE Numbu Cy Share holders i 7 and tore ig no maxtmur7 Lint. § 3) te must have atleast % Directors A) Tt canbe Started abley yninimum Laid clown capital ys Subscribed e “ 5) gne Shares of fee Company ave advertised in tha for 2 proapects throug, news papers ‘te the qureral pubic. 6G) the Shares Should be allotted ustth wm 12.0 cougs of te Usue oF} Prospectus: 7) Tt hos ke bako a contibicale ve Wn eorpovedtan tron, than WRegiktray of Teint Steck Conpparies" hbebsve stontig tho business. 2) The Skewes ove travdferralle . gy The Company Srey & Submib the annua) audit Agporis and “balance Sheet fs all the Shave holders. Jo) Thig & subsecléd bk Government contrat public owe fnvolved. os be | ny dhe word " Limited” is added at tie end 6} tke | name jf tka Company - aAdvantages ef Teint, Steck. Corparg = y Lavge capital canbe invested and Ao there ren s€ope Loy expansim: - 2) The Labulilf cy Share holders i Limiled - i) W transfer °} shares poatible 4) ReSk involyed 16 leas at the loses are divided among Ire Above helders: g) Tt can supply Letter qpolily geocu ot low price. (_ disaavantagel = . 1) Formation i& dithicull and costly 2) Decisions will be delosyeet a) divedlors ll Show favourtdiam in Selecking tha higher posts ond appoints thelr own Perdorn + A) Disputes mo ade, among Share hatdera> 5) Te has exceasive Asqulations by Lau : difference between privete Limited and publi® — —~ PRIVATE LimiTED CompANY PuBlic LIMITED COMPANY | Membership & limiled t close) Friends anc Aclakives ¥ the | Promoters D Membership 4 epen ts public, 2) Minimum number sf memberd} 2) Minimum number of members | 182 and moximum ve So ik 7 amd there is no maxinu7 2) Capital is contributed by |» pits) w contributed by ke Promoters | Shave holders by purchase i Shared: op> 4) Trondfer sf membership a | ME possible. nithout informi [fe tha Company 5) SuilaLle fey medium Scole | incu At es 6) The compan need not make | any preggentl and circu among fro membark B) TE is not Subsected 5 any | ~ | Government control St ®) 26 conbe Started without minimum Laiddoum Capital ' | a), No need oF Stetubory meeting | | Pox electing cirectors o | 10) Private Limited "a ded at te, « | end qe name of lie Copy: SHARES .— ROPES & 4) Transfer cy thores is possible bsithour informing te tka Comporny. s) Suitoble Fr forge Scale in cudstri C4- G) The compa mst nok Tre CUdits “bd civculota among share halders. lz) Te le Subsected bb general contrat. + Qovernnevk R) 2 Cannot be Started satin | witheane minumum laid dorsi 9) Statutiy me \ be be held fey electing cLrectuy 4 Only tie Userd “Limited "is Used hth tha Name = Ika. Company . Capital AatAsed b Yolnk Stock company in Rs. tooo Ushich are Know Sf compan & mominal Capttel. The healclers the general public for Ike the amounts VWi2., R410, Re lo nas Borers. A Shove i, unit of these hare, ove entitled te yet a share ef Prose and \eti Aagiat Shere of \ko Company ia propriate numbay .« Sh: anal oe trarsferrable + te eleck board 4 clive ctoyx, « Each cheatinguished ‘by Wr are, are meovolte prpely The Value =f Share iz kep‘ | rrcderately few imerdey fe appeal dn Usidley public. | The Share heldeys who carve. the Aeak ctoners Y the | Company are Aekponhible for Profits and lo wes te | the Sxtent of Herr Share money. } DEBENT URE S— ; The capital Aatked by thy Company in the | Form 5} Loans from the Public Poy tha Kx poinian a the ComPpony 14 Known a4 Debenture- | “A Debenture 18 @ bond oy a certificates era document Udued by ta company undey ik common 4eal fora Specific amount ak a cerkaty rak | inteveat poyble atty certoin pexiod? A Defenture heldey % a creditor H te Company « A fexed Ante interest iA potd on Aebentures: Buk tay const qk o Ahare propek- ghe debenture hetdey well Ge Fiven Preference In paying the amount Leaving Ie showre hotdem tn Case iquicietien Bf the company» The aebenture heleer tll not have voting Aighk ond isill wok Participate in the Company adminidtyab'en . a pPilietencs behusin, Aanpwittration kManapment- oo ADMIN STRATIO | MeNAGEneEXT ) rekon oy ae tstth Wa cletermit 2t ie concerned Us implementaho, = of ee : a Policies! dang and patna” , 4 E takes oe OF decibind and 3 bileos decitions bsithin Ihe frome work. 3) TE is tep bevel mar pemet Fneba) 04 is Lovey Love | rigt funch 41 Dr commiats sy cwren & top Saco, 94 consists y manager: en 5) Br iy Used i, Relahon te Seve wee | likes ee eee im business dimsCO applicaivan has fe be abmited te We Aapstvar oy co-operative societies che otis qf their clpartmnk: Lal\ adkend fe fever general body meeting in which by- hows ave framed and civeders, are lected. and ih authorities are fotiaked oabouk Tk Aourd nen, a kgence will istued by Aegrstrar and Mus the Rociehy ig formed. The co-operakve sociely cane formed by minimun ae 1S members: paverIRqes:— TRA formation easy: wi demo otic. orm of ovnerslap te benefits Weare’ Bections ae ie having bs ed Jiobilitiy sont bawu Disadvantages: - f covorclnalian anol conflict Oo There may be Jack ah Ae among membe YA i Limiled and Ao wb 4 Livwlad be AmeM capital hhusine AS only - 3 secre cy e@annot ya Whe ove Th better position may tA advantage be maintains. membe take peysonal ‘ pifference between Co-9O| evatives and Toint Stock yal a ek ee ees te companied 8a —— Co-operative Soci ely The mein obyeck is to serve Re members Joint Stocle Compang The mein obTect is ls earn Probes ome Aistaibule Mem among Aare holders ©) the neimber ef members is Uauelly Lows 2) There are more number of members than Co-cpevative ~ Aocietieks 4 only one vole iz given \s By The number of votes Ore each member Proportional ks the number °h t Aharer held by Ihe Share & : |4) ae | Thetr IG BUA loo] @ theiy conpacaly La UAtrail ond Avitable for marke ing high amd Aurtable fey Plecucs’ and Aelling actiurties cictiytties in lange Acale eluatay _ —_ —- P) more capital Conmot le 5) More capite) canbe collected by suing more Zhao — collected c) Tremsfer ef membership i nok ssable 1) The Liabilly in Lmildd ov Aome times Unlioniled &) TaAanster of Ahavs Is posi ble 7) The Labi hy ig elise Lute «| oa dpe thera gems wrticulew ble bay become genrehart (4 prtnenr of an Leone a | , i peréons aoa pe place. ave eb x memle re Government pa Pan TyPES oF & In these, the Ui te these Accielies 0“ OPERATIVE ove des Zeme fi workers oF P combine Aagethey be open > geking Pasducts of 4 eliminaking re ditties can eilker uch a me Produce’ Commo cy fo tre publi Paogits ore aati Producers Core ev aktve. Ce = ae doily be c So hea EE — middlemen fpackts- b, Geyernme the Valuc fucwr op prtin ore cple ef Zarne oral 7 eoph ve Ztore coe peort use direct, from fre the Lup Add aenong ther xginal Prcteta ond butad among tke members - > Oper Societe aykicles form Me cooper the Producers of tive Aociela Por buying and Zellng aa as Aat : Products t eliminate Ire qheup uch snyplvernern of Co- ope yok ~~ To we housing SLShS items w © place frm che Workers oy citizens of any tebe constrching a co-opevm theiy housed these Zoccetres models. They itt the loans ofteved a of tran uw made hong Kime, abouk 2b gears Co—opeyvaki conopevakive be cubti vod ray ae leans che Government PAour fy Paocur! ost ll ecetee celony for & Eaxming societ et Some of the agriculturi ats fovm the 4° tk band on com Bron the. Government Aoviely des Rome Funds te Ailg, bricks, but bobng of they ovr t Vee Aocedy- qhe Ape operative fines The ie purchase« i cay rccultural implements, Seeds, fertilizers a x peaticides ete. With Low Percentage ] interest.” | apeyative Credit Soctetes: ! - - form la, Co-operative Ccvedat ivitevear fo tho Acceve financed BS ca Come peaple sociele ty PAovtete Loam ot ous ose Wndivicduals. These Zorieties from thy Reserve Bank -af India, Stote assistance Govesnment and tke. mem bers - — os klord Science liter meank knowleag .Pb kk an orga’ Knot, based npr Ueheren fering and nF acxct principles ® The barge between “aye? “and Se ened is Thob ant oelta Carver how He app Licata, | isos Hu Kneusing between The exsentda) —Peature, oy Seience Ave | ayte Ua sysemeste bo: imma ete | Yee RNS Reales rlake BP b) The Pwrna lex vol on ta, ba Te, real etserrabont ‘ e) we rin ciples are exact and have Luniveny applicatvon, esc lh onl any limidadtow - a) gre PAndple ettabliet, a canbe and ebbect elation Ship between Vedious fackan |Features of Co-Operative Organization: Fundamental features of a co-operative organization: (i Registration: A co-operative society must be registered under the Co-operative Societies Act, 1912 or under a State Co-operative Societies Act, On registration, the society becomes a body corporate, having a separate legal entity of its own, with perpetual succession and limited liability of its members, (ii) Voluntary Association:: A co-operative organisation is a voluntary association of persons. Everyone having a common. interest is free to join a co-operative society; irrespective of caste, creed, religion or political affiliation, No person can be forced to become the member of a co-operative society or continue as a member. ‘A member after giving proper notice can leave the society; and will get back his capital according to the rules of the co-operative, But no member can transfer his shares to another person. (iii) Minimum Ten Persons Needed: ‘A minimum of ten adult persons are needed to form a cooperative organisation. Maximum number of members is 100, in a co-operative credit society; with no such limit in non-credit co-operative societies. (iv) Service-Motive: The primary aim of a co-operative society is to provide some service or benefit to its members (or even general public’s) by fighting against some social evil. () Finance: ‘The capital of a co-operative is raised from members through issue of shares. A co-operative can also obtain loans from the Central or State Co-operative Banks. (vi) Limited Liability: ‘The liability of each member of a co-operative is limited to the extent of the value of shares held by him, in the share capital of the co-operative. (vii) Democratic Management: Business of a co-operative society is managed by a managing committee; which is elected by the members, The members lay down the broad policy guidelines within which the managing committee manages the affairs of the co-operative society. ‘The managing committee usually consists of the following office-bearers: |. President 2. Vice-president. 3. Secretary 4. Joint Secretary, ifany 5. Treasurer. (viii) ‘One-Man One-Vote’ Rule: Every member in a co-operative has one vote; irrespective of the number of shares held by him ‘Oneman one vote rule’, as such conveys the idea of equality of status for all members of the society. (ix) Limited Return on Capital and Disposal of Surplus: ‘A limited interest up-to 10% is paid to members on their capital contribution-as an incentive to invest money in the cooperative society. However, interest is paid only out of profits. Profits are distributed not in form of dividend but in form of a bonus which depends on the volume of business done by a member with the co-operative.For example, in a consumer co-operative this bonus depends on the amount of purchases made by a member from the co-operative, during the year; and similar other bases in case of other types of co-operatives. (x) State Control: Government exercises control over co-operatives to protect the interests of members of co- operatives; who, otherwise, are economically quite weak. Every co-operative society must furnish annual accounts and reports to the Registrar of Co-operatives. Further, accounts of all co- operatives are subject to compulsory audit. Advantages of Co-Operative Organisation: (i) Easy to Form: . A co-operative society is easy to form. Its registration is very simple and does not involve many legal formalities (ii) Fully Democratic Management: Managing committee of a co-operative is elected, by members. Further, ‘one-man one-vote’ principle is followed in all co-operatives. As such, each member has equal rights and equal voice in the management of the co-operative. (iii) Perpetual Succession: After registration, a co-operative society acquires a separate legal status with perpetual succession. Its life is not affected by the death, insolvency or lunacy of members. Co-operatives exist for long periods-benefiting members and the community. (iv) Limited Liability: Liability of members of a co-operative society is limited to the extent of the value of their shares. Members do not run personal risk; while being members of the co-operative. This fact encourages even poor people to join co-operatives. (v) Governmental Patronage: As a matter of social welfare policy, Government extends all support to co-operatives e.g. loans at low rates of interest, relief in taxation etc. (vi) Intemal Financing: A large part of the profits of a co-operative is transferred to general reserve every year. Through ploughing back of profits, a co-operative can undertake schemes for its growth and expansion. (vii) Lower Operating Costs: Operating costs of a co-operative are quite low; because: 1. Office bearers offer honorary services, 2. There is no expenditure incurred on advertising and marketing activities. (viii) Fair Distribution of Surplus: Surplus of a co-operative is not distributed as dividends are paid in companies. Rather surplus is given away to members, on the basis of their dealings with society. This approach to disposal of surplus is called ‘distributive justice’.@ (ix) Social Welfare Aspect: Co-operatives are non-business organisations, ‘They spread ideals of co-operation in society. They promote feelings of equality, independence, hard work among people in a society and help them morally upgrade themselves. Disadvantages or Limitations of Co-Operative Organisation: Following are the limitations of the co-operative organisation: (i) Limited Capital: Co-operative organisations have very limited capital; because of the following reasons: (a) Members of a co-operative are economically backward, in most of the cases. (b) Co-operatives do not give more than 10% interest on capital invested. This provides not much incentive to invest huge amounts in co-operatives. (©) The principle of ‘one-man one-vote’ discourages people to buy a large number of shares in a co-operative organisation. All told, limited finances stand in the way of growth of activities indulged in by a co-operative. (ii) Inefficient Management: Management of a co-operative organisation is called inefficient. In fact, members of managing committee are part-time and inexperienced people. ‘They usually possess no specialized knowledge of modern management principles and techniques. Because of limited financial capacity, a co-operative is unable to hire the services of professional managers; who charge very high for their services, in the present-day-times. (iii) Rigid Rules and Regulations: Co-operatives have to function according to rigid rules and regulations. They are subject to excessive Governmental control over their functioning. The result is lack of flexibility of operations in the functioning of co-operatives; which does not permit their growth in view of environmental opportunities. (iv) Political Interference: Government also invests in co-operative organisations. There are, then, members in managing committee, who represent interests of political parties. In fact, members of political parties dominate the working of the co-operative; and the co-operative organisation very often turns into a political organisation. Thus the very purpose and philoso} ‘the phy of co-operation, which is the basis of a co-operative organisation meets with frustration. (v) Lack of Motivation: ‘The office-bearers of a co-operative are honorary officials, They have no incentive to work hard for the co-operative. In the absence of remuneration, they just work minimum and justify their status, in the eyes of the members.Public Sector Organization: The public sector is that portion of an economic system that is controlled by national, state or provincial, and local governments. The public sector overlaps with the private sector in producing or providing certain goods and services. The extent of this overlap varies from country to country, state to state, province to province, and city to city. This overlap is most often seen in waste management, water ‘management, health care, security services, and shelters for homeless and abused people. Sometimes, service providers move from the public sector to the private. This is known as privatization, and has been taking place in recent years on a large scale throughout the world. In other instances, a service may shift from the private sector to the public. This is less common, but health care is one area where some governments are providing or experimenting with services previously furnished by private providers. Governments routinely hire private corporations to provide goods and services for the public sector, @ practice known as outsourcing. Examples include the manufacture, construction or maintenance of aircraft, military hardware, electronic and communications equipment, computers, roads, freeways, bridges, parks and recreation areas. The public sector is the part of the economy concemed with providing various governmental services. The composition of the public sector varies by country, but in most countries the public sector includes such services as the military, police, infrastructure (publicroads, bridges, tunnels water supply, sewers, electrical grids, telecommunications, etc.), public transit, public education, along with health care and those working for the government itself, such as elected officials. The public sector might provide services that a non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service. Businesses and organizations that are not part of the public sector are part of the private sector. The private sector is composed of the business sector, which is intended to earn a profit for the ‘owners of the enterprise, and the voluntary sector, which includes charitable organizations. ‘The organization of the public sector (public ownership) can take several forms, including: + Direct administration funded through taxation; the delivering organization generally has no specific requirement to meet commercial success criteria, and production decisions are determined by government. * Publicly owned corporations (in some contexts, especially manufacturing, "state-owned enterprises"); which differ from direct administration in that they have greater commercial freedoms and are expected to operate according to commercial criteria, and production decisions are not generally taken by government (although goals may be set for them by government). + Levels of Public sector are organized at three levels: Federal or National, Regional (State or Provincial), and Local (Municipal or County). + Partial outsourcing (of the scale many businesses do, e.g. for IT services), is considered a public sector model. A borderline form is as follows** Cea * Complete outsourcing or contracting out, with a privately owned corporation delivering the entire service on behalf of government. This may be considered a mixture of private sector operations with public ownership of assets, although in some forms the private sector's control and/or risk is so great that the service may no longer be considered part of the public sector + Public employee unions represent workers. "Since contract negotiations for these workers are dependent on the size of government budgets, this is the one segment of the labor movement that can actually contribute directly to the people with ultimate responsibility for its livelihood. While their giving pattern matches that of other unions, public sector unions also concentrate contributions on members of Congress from both parties who sit on committees that deal with federal budgets and agencies. In general terms, the public sector consists of governments and all publicly controlled or publicly funded agencies, enterprises, and other entities that deliver public programs, goods, or services. It is not, however, always clear whether any particular organization should be included under that umbrella. Therefore, it is necessary to identify specific criteria to help define the boundaries. The concept of public sector is broader than simply that of core government and may overlap with the not-for-profit or private sectors. For the purposes of this guidance, the public sector consists of an expanding ring of organizations, with core government at the centre, followed by agencies and public enterprises. Around this ring is a grey zone consisting of publicly funded contractors and publicly owned businesses, which may be, but for the most part are not, part of the public sector. Types of Public Sector Organization Public sector organizations may exist at any of four levels: International (multistate entities or partnerships). «National (an independent state). ‘© Regional (a province/state within a national state). © Local (a municipal-level body such as a city or county). At any of these levels, the public sector generally consists of at least three types of organizations. Core government consists of a governing body with a defined territorial authority. Core governments include all departments, ministries, or branches of the government that are integral parts of the structure, and are accountable to and report directly to the central authority — the legislature, council, cabinet, or executive head. Agencies consist of public organizations that are clearly a part of the government and deliver public programs, goods, or services, but that exist as separate organizations in their own right — possibly as legal entities — and operate with a partial degree of operational independence. They a but not necessarily, are headed by a board of directors, commission, or other appointed ly. Public enterprises are agencies that deliver public programs, goods, or services, but operate independently of government and often have their own sources of revenue in addition to direct public funding. They also may compete in private markets and may make profits. However, in most cases the government is the major shareholder, and these enterprises partly follow the acts and regulations that govern the core government. Outside this clear public sector area is a gray zone, or boundary zone, with two types of organizations that might or might not be part of the public sector.State businesses are government owned and controlled businesses that sell goods or services for profit in the private market, Although they do not deliver what would be considered public programs, goods, or services, they might be considered part of the public sector. Public contractors are legally independent entities outside government that receive public funding — under contract or agreement — to deliver public programs, goods, or services as their primary business. Due primarily to their limited public control, these organizations usually would be classified as not for-profit or private sector entities, Funding for public services are usually raised through a variety of methods, including taxes, fees, and through financial transfers from other levels of government (e.g. from a federal to a provincial or state government), Different governments from around the world may employ their own unique method of funding for public services. For example, in Canada a Crown corporation is an enterprise owned by the Crown (or Queen) but still has the ability to function like a private enterprise. The BC Lottery Corporation is a provincial Crown corporation and in 2013/14 generated $1.17 billion dollars of net revenue that it was able to directly invest back into BC’s provincial economy. Sometimes the public sector will partner with an organization in the private sector to create a public-private partnership, These hybrid organizations (named P3s) work together to jointly deliver a service or business venture to a community (see examples). Through the process of outsourcing, public sector organizations will often engage private enterprises to deliver goods and services to its citizens, Examples of the Public Sector Examples of organizations in the public sector include: Education (Schools, Libraries) , Electricity , Emergency Services , Fire Service , Gas and Oil, -Healthcare Infrastructure , Law Enforcement, Police Services » Postal Service Public Transit, Social Services, Waste Management ©