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Lesson 4 - Orgma-Business Organization

The document discusses different forms of business organizations and how they change as businesses expand. It describes simple, functional, and divisional organizations that have centralized authority and few rules. As companies grow, they transition to functional forms with specialized managers and divisional structures with semi-autonomous units. The document also contrasts profit organizations designed for income generation with non-profit organizations measured by client services. Finally, it outlines flexible and open forms like team, matrix, project, boundaryless, and virtual organizations adapted for today's changing environment.

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Charlon Garganta
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156 views

Lesson 4 - Orgma-Business Organization

The document discusses different forms of business organizations and how they change as businesses expand. It describes simple, functional, and divisional organizations that have centralized authority and few rules. As companies grow, they transition to functional forms with specialized managers and divisional structures with semi-autonomous units. The document also contrasts profit organizations designed for income generation with non-profit organizations measured by client services. Finally, it outlines flexible and open forms like team, matrix, project, boundaryless, and virtual organizations adapted for today's changing environment.

Uploaded by

Charlon Garganta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Forms of

Business
Organizations
Mr. Charlon B. Garganta
Subject Teacher
1. Differentiate the
Learning phases of
economic development
Competencies: and its impact to
business environment
2. Analyze the forms
and economic roles of
business organizations
Forms of Business
Organization
1. Sole/Single Proprietorship
2. Partnership
3. Corporation
Changing Forms of
Business
Organization
Simple business organizations
-these refers to business
organizations with few departments,
centralized authority with a wide span
of control, and with few formal rules
and regulations.
-These are easy to manage because of
their simple form.
-However, change of form follows as
the company expands its operation.
Functional business organizations
– these pertain to business
organizations that group together those
with similar or related specialized
duties that introduce the concept of
delegation of authority to functional
managers like the personnel manager,
sales manager, or financial manager but
allow CEO’s to retain authority for
strategic decisions.
Divisional business organizations
– these are business
organizations made up of separate
business units that are semi-
autonomous or semi-independent,
with division head responsible
for his or her unit’s
performance.
Profit business organizations
–These are business organizations
designed for the purpose of achieving
their organization’s mission, vision,
goals, and objectives and maintaining
their organizational stability through
income generation and profit-making
activities.
-Immediate revenues or cost factors
account for their success or failure.
Non-profit organizations
–These are business organizations
designed for the purpose of achieving
organization’s mission, vision, goals,
and objectives, providing service to
clients without expecting monetary gains
or financial benefits for their
endeavours.
-Their success or failure may be
measured by the high or low evaluation
scores they obtain.
Open/flexible business
organizations
–These are formed to meet today’s
changing work environment.
Business organizations affect and are
affected by the environment:
therefore, change becomes inevitable.
-Other forms of business
organizations:
1. Team structures – where organizations as a
whole is made up of work teams (small, but
focused) that work together to achieve the
organization’s purpose; popular in collectivist
culture.
2. Matrix business organizations – those
which assign experts or specialist belonging to
different functional departments to work
together on one or more projects; exhibits
dual reporting relationships in which managers
report to two superiors – the functional
manager and the divisional manager.
3. Project business structure
– a business organizational form
with a flexible design, where the
employees continuously work on
projects assigned to them; projects
may be short-term or long-term and
members disband when the project is
completed.
4. Boundaryless business
organization
– a business organization whose
design eliminates vertical,
horizontal, or external boundaries,
and is described to be flexible and
unstructured; there are no barriers
to information flow and, therefore,
completion of work is fast.
5. Virtual business
organization
– made up of a small group of
full-time workers and outside
experts who are hired on a
temporary basis to work on
assigned projects; members usually
communicate online.
Enrichment:
Go to our Google
Classroom for our
Quiz.
THANK YOU VERY MUCH
FOR ATTENDING OUR
ONLINE CLASS. TYL!

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