ORGANIZATION AND

MANAGEMENT
The Forms and Economic
Roles of the Business
Organizations
Bible Verse of the Week
(6)Do not be anxious about anything, but in everything by
prayer and supplication with thanksgiving let your request
be made known to God. (7) And the peace of God, which
surpasses all understanding will guard your hearts and your
minds in Christ Jesus.
Quarter 1 Week 4
At the end of our lesson, you are expected to:

• Analyze the forms and economic roles of business

organizations
• Differentiate the phases of economic development and
its impact to business environment.
Review Week 3
• What are the two (2) analysis tools that provide an
objective look and information a manager need to
make a mature and favorable decision.

• What does SWOT stand for?

• What does PEST stand for?
Can you…

Identify the forms of

business organization?
 Forms of Business Organization

01 02 03

Sole Partnership Corporation

Proprietorship
SOLE PROPRIETORSHIP
• These businesses are owned by one person who
usually has day-to-day responsibility for running the
business operations
PARTNERSHIP
• A formal arrangement by two or more parties to
manage and operate a business and share its profits.
CORPORATION
• It is a legal entity that is separate and distinct from
its owners
• Has a life of its own and does not dissolve when
ownership changes.
• Investors elects set of board of directors, who shall
appoint corporate officers
CORPORATION

Ayala Corporation SM Investments Corporation

Jollibee Foods BDO Unibank Inc. PLDT, Inc.

Corporation
Pros and Cons
Let’s look closely at the advantages and disadvantages
of each form?
Advantages of Sole Proprietorship
• Owner receives all the profits
• Profits are taxed only once
• Owner makes all the decisions and is in complete
control of the company
• Easiest and least expensive form of ownership to
organize
Disadvantages of Sole Proprietorship

• Unlimited liability if anything happens in the

business. Your personal assets are at risk.
• Limited in raising funds and may have to acquire
consumer loans
• No separate legal status
Advantages of Partnerships
• Easy to establish
• Shared financial commitment
• Separate legal status to give liability protection

• Profits taxed only once

• Partners may have complementary skills
Disadvantages of Partnerships
• Partners are jointly and individually liable for the
action of the other partners
• Profits must be shared with the partners
• Divided decision making
• Disagreement among partners
Advantages of Corporations
• Owners have limited liability
• Easier to raise capital
• Easy to transfer ownership
• Has perpetual lifetimes
• High credibility
Disadvantages of Corporations
• More time and money spent in organizing
• More paperwork
• Higher tax (double tax)
• More costly
May I ask…

What is the
Nature and Role of the Firm?
Nature and Role of the Firm
1. Human Resource Management
• Covers the major function of recruitment, selection
and placement, training and development, employee
relations, and compensation and benefits
administration
Nature and Role of the Firm
2. Marketing Management
• Responsible for identifying, anticipating, and
satisfying consumer requirements profitability
Nature and Role of the Firm
3. Operations Management
• Involves overseeing, designing, controlling the
process of production, and redesigning business
operations in producing production of goods and
services
Nature and Role of the Firm
4. Financial Management
• Its goal is to achieve three benefits:
a. Business support service
b. Lowest cots
c. Effective control of the environment
Nature and Role of the Firm
5. Material & Procurement Management
• Includes buying high quality products and services
at the right price, from the right reliable source,
based on the right specifications, in the right quality
for delivery, at the right time to the right customers.
Nature and Role of the Firm
6. Office management
• Involves in the design, implementation, evaluation,
and maintenance of the process of work within an
organization, in order to maintain and improve
efficiency and productivity.
Nature and Role of the Firm
7. Information and Communication Technology
Management
• Includes a related form of communication or
application that encompasses media and technology
as well as various services and applications
associated with them such ash videoconferencing
and distance learning
Now, let’s discuss the…

Stages and Development of Organizations

 Stages of Development of Organizations

01 02 03

CHAOS STABILITY HIGH

Goals and direction PERFORMANCE
Focus shifts from stability
“firefighting” stage
become more consistent to performance
Problem-focused
Eye on innovation
More defined policies
Stages of Development of Organizations

1. CHAOS
• Also called the “firefighting” stage because
everyone always seem to be putting out fires
• Operations tend to be problem-focused; people are
reactive rather than proactive; informal routines and
processes; procedures and accountability are unclear
Stages of Development of Organizations

2. STABILITY
• As operations becomes stable, goals and direction
become more consistent
• policies and procedures become more defined and a
structure starts to emerge
• There is high level of compliance, innovation may be
stifled, people become more unified
Stages of Development of Organizations

3. HIGH PERFORMANCE
• Focus shifts from stability to performance
• People focus more on the mission and vision of the
company that goals of the company begin to take on
a longer-term look, with an eye on innovation and
increasing efficiency
Test your knowledge!
Choose the best answer…
1. Advantages of this business type are the owner is
their own boss and gets to keep all the profits

a. Partnership
b. Sole Proprietorship
c. Corporation
d. Franchise
Choose the best answer…
2. The Law firm “Edulan – Edulan Law Firm” is an
example of
a. Partnership
b. Sole Proprietorship
c. Corporation
d. Franchises
Choose the best answer…
3. This organizational role is important because it
manages capital, taxes, and costs.
a. Operations Management
b. Marketing Management
c. Financial Management
d. Office Management
Choose the best answer…
4. Managers in this area are responsible for
managing the activities that are part of production
of goods and services.
a. Operations Management
b. Marketing Management
c. Financial Management
d. Office Management
Choose the best answer…
5. This is the stage of organizational development
where people are crisis or short-term focused?

a. High Performance
b. Stability
c. Chaos
d. Credible
Free to Ask Questions

Faith Victory Bailey

Villaruz
ABM Teacher Dupont
 References
• Payos, R., Espinosa, E., Zorilla, O. (c2016). Organization and Management 1 st
ed. Rex Book Store.
• Cabrera, H., Altajeros, A. & Riaz, B. (c2016). Organization and Management .
Vibal
• Teacher Mallows
THANK YOU
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