Q1-Lesson 05

Organization
and
Management
 Q1- Lesson 05

Organization
and
Management
WITH TEACHER JOFEL :)
MS. MA. JOFEL MADELYN P. YARCIA
CLASSROOM
OPENING
PRAYER
Attendance
Checking!
Materials Needed for Class
•Notebook
•Pen
•Full attention
Q1- Lesson 05

Forms of
Business
Organization
Learning Objective:

Analyze the forms and economic

roles of business organizations
Q1- Lesson 05

Forms of
Business
Organization
 Background Information...
Small and large businesses drive economic
stability and growth by providing valuable
services, products and taxes that directly
contribute to the health of the community. It also
provide jobs, strengthening the economic health
of each community where a business is based.
 Background Information...
Even if a business is headquartered elsewhere, employing
people at each local business contributes to the success of
that region, as with the wages they earn, people buy
property, work, shop and otherwise invest in where they
live.
Hence, success in business translates to the economic
well-being of a company and its residents through job
creation and offering improved quality of life for the
country’s citizens.
 Did you know that...

The form of a business organization may depend

on its purpose, nature of operations and
resources. However, a business organization's
form may change with the chaning times and
demands they present.
Forms of Organization
(ownership) •Sole Proprietorship
•Partnership
•Corporation
•Cooperatives
 Forms of Business Organization
SOLE- PROPRIETORSHIP
-is a business venture owned by asingle individual who
makes all the decision of the business. The owner enjoys all
the profits and liable for all the debts of the business. This is
the simplest form of business organization which is highly
encouraged among entrepreneurs.
Example: Small business such as localgrocery store, single art
studio, flowershop and the like.
SOLE- PROPRIETORSHIP
 Forms of Business Organization
PARTNERSHIP
- is a legal form of business operation between two or more
individuals who share management and profits?
- refers to an association of two or more persons to carry on as co-
owners of a business for profit. “By the contract of partnership,
two or more persons bind themselves to contribute money,
property, or industry to a common fund with the intention of
dividing the profits among themselves.”(Article 1767, new Civil
Code).
Example: professional practices like law and accounting firm
PARTNERSHIP
 TYPES OF PARTNERSHIP:
1. GENERAL PARTNERSHIP
- Is a partnership with only general partners. Each general partner takes part
in the management and also takes responsibility for the liabilities of the
business.
2. LIMITED PARTNERSHIP
- Is a partnership which includes both general and limited partners. Limited
partner does not participate in the management of the business andhas a
limited liability up to his capital investment only. In many cases, limited
partners are only investors which provide investments and receive a share
ofprofits while the general partners are held liable up to their personal assets
incase of bankruptcy.
 Forms of Business Organization
CORPORATION
is a legal entity that is separate and distinct from its owners, it
enjoys most of the rights and responsibilities that an individual
possesses, that is, it has the rights to enter into a contract, loan and
borrow money, sue or be sued, hire employees, own assets and pay
taxes.
refers to a separate body consisting of at least five individuals
treated by law as a unit. “An artificial being created by operation of
law, having the right of succession and the powers, attributes and
properties expressly authorized by law or incident to its
existence.”(Sec. 2, The Corporation Code of the Philippines).

Example: San Miguel Corporation, UNILAB, Jollibee, SM, PLDT, Ayala Corporation,
Metrobank etc.
CORPORATION
 Forms of Business Organization
COOPERATIVES
Original purpose was to supply those involved with goods
or services at lower cost compared to those bought from
retailers. The cooperative's life is not affected by the
death of any of its members nor by selling of a member's
shares. It can, however, be dissolved by a majority vote of
the BOD and a resolution signed by at least 2/3 of the
general memberships.

Example: ALAY KAPWA, LAGSADECO

CHANGING FORMS OF BUSINESS ORGANIZATIONS

1. Simple Business Organization

2. Functional Business Organization
3. Divisional Business Organization
4. Profit Business Organization
5. Non-Profit Business Organization
CHANGING FORMS OF BUSINESS ORGANIZATIONS

Refers to the business organizations with

few departments, centralized authority with
a wide span of control, and with few formal
reules and regulations.
Easy to manage because of its simple form.
However change of form follows as the
company expands its operations
CHANGING FORMS OF BUSINESS ORGANIZATIONS

Refers to the business organizations that

group together those with similar or related
specialized duties that introduce the
concepts of delegation of authority to
functional managers like the personnel
manager, sales manager, or financial
manager but allows CEOs to retain authority
for strategic decisions.
CHANGING FORMS OF BUSINESS ORGANIZATIONS

These are business organizations made up of

separate business units that are semi-
autonomous or semi-independent, with a
division head responsible for his or her unit's
performance.
CHANGING FORMS OF BUSINESS ORGANIZATIONS

These are business organizations designed

for the purpose of achieving their
organizations' 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.
CHANGING FORMS OF BUSINESS ORGANIZATIONS

These are business organizations designed

for the purpose of achieving their
organizations' mission, vision, goals, and
objectives, providing service to clients
without expecting monetary gains or
financial benefits for their endeavors. Their
success or failure may be measured by the
high or low evaluation scores they obtain.
OTHER FORMS OF BUSINESS ORGANIZATIONS

where the organization 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
OTHER FORMS OF BUSINESS ORGANIZATIONS

those which assign experts or specialists

belonging to different functional
departments to work together on one or
more projects; exhibit dual reporting
relationships in which managers report to
teo superiors - the functional and
divisional managers.
OTHER FORMS OF BUSINESS ORGANIZATIONS

Business organization 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.
OTHER FORMS OF BUSINESS ORGANIZATIONS

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.
OTHER FORMS OF BUSINESS ORGANIZATIONS

Made of small group of full-time workers

and outside experts who are hired on a
temporary basis to work on assigned
projects; members usually communicate
oline.
 ECONOMIC ROLES OF BUSINESS ORGANIZATION:

1. To Create Wealth
2. To meet the needs of the people
3. To promote economic development
 ECONOMIC ROLES OF BUSINESS ORGANIZATION:
1. To Create Wealth
- the main purpose of every business venture is to
create wealth in terms of providing products and
services to the customer, which inturn business gains
profits as a financial reward. Business always strives
tobecome profitable and it has become the motivation
of many companies inoperating a business.
 ECONOMIC ROLES OF BUSINESS ORGANIZATION:
2. To meet the needs of the people
- this is not merely about meeting the needs of the
people through the products and services they
produce as customers but also about meeting the
needs of the people who do the work, such as the
employees through the salary they receive which
enables them tobuy their basic needs and by providing
a conducive working conditions forthem. This is also
about meeting the needs of other stakeholders of the
business.
 ECONOMIC ROLES OF BUSINESS ORGANIZATION:
3. To promote economic development
- business plays a vital role in the economic development of a
country and the success in business is evidently shown in terms of
the financial stability and economic well-being of the company and
to the society where the business is operating in the forms of taxes
that these business paid in the government and which are being
used for various infrastructures, for building bridges, hospitals,
schools and roads, among other facilities to improve the lives of the
people. Business also provides jobs for the people in the
community which create a positive domino effect onthe economic
growth of the society and the economy as a whole.