What is a business organization?

A business organization is a consist of a group of people and the main

intention of a business organization is to perform the necessary
activities in order to fulfill the vision and mission of a business
organization. In addition to that a business organization mainly focuses
on the business structure and how the structure can be used in a
effective manner to operate the business. Business organizations are
responsible for supply goods and services involving financial and
commercial industrial aspects.

Classification of business organizations

Business organizations are classified under three sectors based on the
ownership, objective and on the scale:
01. public sector
02. private sector
03. voluntary sector
01. Public sector
The public sector is the industry which is held, supervised, funded and
superintended by the government. Public sector organizations provide
services to fellow citizens. Public sectors are funded through taxation
implemented by the government. The public sector organizations are
focused on goods and services that are intended to benefit the general
public and the society. public sector organizations such as the
government agencies and the departments do not aim to make profits
from the good and services provided by the organizations. The public
sectors are in charge of wide range of activities, from providing basic
services like education, healthcare, military and etc.
Examples for public sector organizations:
01. Commercial corporations:
o Bank of Ceylon
o Central bank of Sri Lanka
o Ceylon electricity board
o Ceylon petroleum corporation
02. Government owned companies
o Airport and aviation service
o Lanka sathosa
o Lanka fabrics
03. Other institutions(plantation)
o Agalawaththa plantation
o Uda pussellawa plantation

02.private sector
The private sector is administrated by individuals, entrepreneurs or
companies who are seeking to generate profits. Private sector
organizations go without government involvement and the sector has
private ownership and control. These organizations are funded by the
owners, shareholders or by bank loans. The main objective is profit
maximization, customer satisfaction and business generation. Most
importantly, the private sector organization has a crucial role in
economic development.

Examples for private sector organizations:

01.Apparel industry
 o Mas textiles
o Brandix Lanka
02.Financial
o HNB
o Pan Asia bank
o NDB bank
o Sampath bank
03.Tele communication
o Dialog
04.health centers
o Lanka hospitals
o Hemas

03.Volantury sector

Voluntary sector is the sector which has the aspiration of enhancing

social welfare and to ameliorate the society. The main purpose of the
voluntary sector is to make significant and positive changes in society.
The voluntary sector is a non-profit sector because the organizations
mainly focus on social wealth than substantial wealth.

Examples for voluntary sector organizations:

o Manusath derana
o Red cross
o Lions club

PUBLIC SECTOR ORGANIZATIONS VOLUNTARY SECTOR ORGANIZATIONS

ADVANTAGES DISADVANTAGES ADVANTAGES DISADVANTAGES

Easier to organize Harder to manage. Time commitment

and coordinate.
Incapability of Must depend
Has a better producing goods heavily on the
flexibility and providing generosity of
services on time. society for finance.
Can take
immediate Able to misuse the Funding difficulties
decisions and power.
actions.

Advantages and disadvantages of public sector and

voluntary sector organizations