Organizations

A business (also known as enterprise or firm) is an organization involved in the trade of goods, services, or both to consumers.[1]Business plan and Business model determine the outcome of an active business operation. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning. The etymology of "business" relates to the state of being busy either as an individual or society, as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope — the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a matter of debate and complexity of meanings. Forms of Ownership

Sole proprietorship: A sole proprietorship is a business owned by one person for-profit. The owner may operate the business alone or may employ others. The owner of the business has unlimited liability for the debts incurred by the business. Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three typical classifications of for-profit partnerships are general partnerships, limited partnerships, and limited liability partnerships. Corporation: A corporation is a limited liability business that has a separate legal personality from its members. Corporations can be either government-owned or privately owned, and corporations can organize either for-profit or not-for-profit. A privately owned, for-profit corporation is owned by shareholders who elect a board of directors to direct the corporation and hire its managerial staff. A privately owned, for-profit corporation can be either privately held or publicly held. Cooperative: Often referred to as a "co-op", a cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.

Classifications
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Agriculture and mining businesses are concerned with the production of raw material, such as plants or minerals. Financial businesses include banks and other companies that generate profit through investment and management of capital. Information businesses generate profits primarily from the resale of intellectual property and include movie studios, publishers and packaged software companies. Manufacturers produce products, from raw materials or component parts, which they then sell at a profit. Companies that make physical goods, such as cars or pipes, are considered manufacturers.

other businesses. The authoritative list of business types for North America is generally considered to be the North American Industry Classification System. or NAICS. Legal types: Corporations Governments Non-governmental Organizations International Organizations Armed Forces Charities Not-for-profit Corporations Partnerships Cooperatives Universities A hybrid organization operates in both the public and the private sector simultaneously. Transportation businesses deliver goods and individuals from location to location. There are many other divisions and subdivisions of businesses. and other kinds of buildings. generating a profit as a result of providing sales or distribution services. some of which are compatible: . fulfilling public duties and developing commercial market activities. and development of properties comprising land. residential homes. Most consumer-oriented stores and catalog companies are distributors or retailers. generating a profit on the transportation costs. orconsumers. The word is derived from the Greek organon itself derived from ergon-an organ or component of a particular task. usually under a government charter. Capital Intellectual Property An organization is a social entity that has a collective goal and is linked to an external environment. Analyses of Organizations: Organizational Structure Organizational Studies Organizational Behaviour A number of different perspectives exist. and even entertainers are types of service businesses. Organizations ranging from house decorators to consulting firms. Retailers and distributors act as middle-men in getting goods produced by manufacturers to the intended consumer. Service businesses offer intangible goods or services and typically generate a profit by charging for labor or other services provided to government.Organizations      Real estate businesses generate profit from the selling. The equivalent European Union list is the Statistical Classification of Economic Activities in the European Community (NACE). restaurants. Utilities produce public services such as electricity or sewage treatment. renting.

2. for example where one might be functional and another executive. As new technologies arise and are implemented. an organization is viewed as an entity is being (re-)organized. 3. From an institutional perspective. Structures vary and ultimately determine the modes in which an organization operates and performs. one could not build to the top. From a functional perspective. who performs individual functions within the . Organization structure affects organizational acts by first providing the foundation on which standard operating procedures and routines rest. The operating model is the desired state of business process integration and business process standardization for delivering goods and services to customers. most human organizations fall roughly into four types: 1. Structure outlines the allocation of responsibilities for different functions and processes to different internal parts such as branches. the benefits of enterprise architecture continue to grow. without a sound foundation. and thus to what extent their views shape the organization’s actions.Organizations    From a process-related perspective. such as linear programming and simulation. GlaxoSmithKline Organizational Theories: Enterprise Architecture: an ongoing business function that helps an enterprise figure out how to execute best the strategies that drive its development. Ex. in that it determines which individuals get to participate in which decision-making processes. Pyramids or hierarchies: every entity in the organization except for the leader is subordinate to another. Organizational Structures: Main focus is to optimize organizational structure: consists of task allocation. coordination and supervision all directed towards the achievement of specific organizational aims. and extension. committees tend to be the most reliable. workgroups. in order to analyze and solve organizational problems/ the theory and method of formulating and solving general decision problems). Committees or juries: groups of peers brought together to make a decision. According to Management Science (the study of statistical methods. An organization is defined by who does and does not belong. an organization is viewed as a purposeful structure within a social context. Enterprise architecture is the organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of the company's operating model. when and why does it act as a collective? Advantages: enhancement. Matrix organizations: This organizational type assigns each worker two bosses in two different hierarchies. Ecologies: breed intense competition where certain departments starve where others profit. and second. Enterprise architecture defines what an organization does. what is executed by whom. and/or individuals. combination of different elements. 4. departments. and the focus is on the organization as a set of tasks or actions. which parts communicate and how. Everybody is paid for the exact job they do. the focus is on how entities like businesses or state authorities are used. Disadvantages: inertness through coordination and loss of interaction.

to lead a company. Complexity Theory and Organizations: complexity theory has been used in the fields of strategic management and organizational studies. and how information is used and stored. to be successful. It was one of the earliest attempts to apply science to the engineering of processes and to management. the transformation . Garbage Can Model: The paper. Application areas include understanding how organizations or firms adapt to their environments and how they cope with conditions of uncertainty. rationality. work ethic. and within the market value chain. logic. Its main objective was improving economic efficiency. by the 1920s. The structure is complex. This was a novel approach compared to traditional decision theory. It encompasses a wide range of perspectives that are critical of traditional theories of management and the business schools that generate these theories. solutions and decision makers from each other. These include analysis. it was still influential but had begun an era of competition and syncretism with opposing or complementary ideas. by applying knowledge from the social sciences and the humanities. IT costs are reduced and responsiveness with IT systems is improved. including phasing the project in slowly. standardization of best practices. Although scientific management as a distinct theory or school of thought was obsolete by the 1930s. especially labor productivity.Organizations organization. If the enterprise architecture is not kept up to date. They are adaptive. Its peak of influence came in the 1910s. Its development began with Frederick Winslow Taylor in the 1880s and 1890s within the manufacturing industries. since frequently cited. in that the individual and collective behavior mutate and selforganize corresponding to the change-initiating micro-event or collection of events. how the organizational functions are performed. and their relationships are not aggregations of the individual static entities. most of its themes are still important parts of industrial engineering and management today. The paper includes Fortran’s source code to demonstrate the model. describes a model which disconnects problems. empiricism. Scientific Management: also called Taylorism. in that they are dynamic networks of interactions. the optimal course of action is contingent (dependent) upon the internal and external situation. continual development and periodic maintenance of the enterprise architecture is essential. the aforementioned benefits will become useless. Contingency Theory: is a class of behavioral theory that claims that there is no best way to organize a corporation. disdain for tradition preserved merely for its own sake or merely to protect the social status of particular workers with particular skill sets. synthesis. Building an enterprise architecture could take considerable time and proper planning is essential. Critical Management Studies: Critical theory is a school of thought that stresses the reflective assessment and critique of society and culture. However. Actor-Network Theory: objects are treated as part of a social network. or to make decisions. Economic Sociology: studies both the social effects and the social causes of various economic phenomena. Instead. The theory treats organizations and firms as collections of strategies and structures. Agency Theory (Principal-Agent Theory): concerns the difficulty in motivating one party (agent) to act in the best interest of another (principal) rather than in his or her own interests. was a theory of management that analyzed and synthesized workflows. prior to implementation. efficiency and elimination of waste.

These organizations were less personal. and knowledge transfer between workers and from workers into tools. farmers and craftsmen were the only ones by 1950 who were not dependent on working for someone else. and finally. and about 60% of those immigrants stayed in the country.[1] Profit can at times also be a consideration for certain companies or other enterprises. Social Entrepreneurship: means identifying or recognizing a social problem and using entrepreneurial principles to organize. as the economy changed. Many Europeans left their homes for the promises of US industry. prior to that. and they built on one another to bring organizations to the level of importance that they are at today. as the population grew and transportation progressed. That number increased to 90% by 1950. Social entrepreneurship practiced in a world or international context is called international social entrepreneurship. which are defined as “social units of people that are structured and managed to meet a need or to pursue collective goals (“Organizations”). they began to gain work from the farmers. Business entrepreneurs typically measure performance in profit and return. cultural. Rather than small groups such as families and churches being able to control these problems as they had in the past. thus making mass production a cheaper and faster alternative to individual control. a need developed for organizational structures that would help guide and support these new employees. and instead were collapsed into larger formal organizations. what they lacked in locality. but social entrepreneurs also take into account a positive return to society.” are said to have risen in the United States within a variety of social and historical contexts. leading to a shift from individual and family production. but. In 1820. growth of industry also played a large role in the development of organizations. They became a permanent class of workers in the economy. In addition. various machines and processes were developed for each step of the production process. externalities from industrialization also created a perfect opportunity for the rise of organizations.[3] The smaller associations that had contained various social issues in the past were no longer viable. European immigrants. Various negative effects such a pollution.[4] As in the Lowell Textile Mills. which allowed factories to increase production and produce more than they had before. Markets that were quickly growing and expanding needed employees right away – because of that. more distant. and more centralized.[5] Some of the first New England factories relied on daughters of farmers at their onset. new organizations and systems were required in order to keep their heightened effects down. making their own supplies. Social entrepreneurship typically furthers broad social. and remaining almost fully self-sufficient.Organizations of craft production into mass production.[3] Generally.[3] Along with wage dependency and externalities. and manage a social venture to achieve a desired social change. later. Several of those factors are credited with making organizations viable and necessary options for citizens. most people were able to survive by hunting and farming their own food. about 20% of the United States population was dependent on a wage income. and unemployment all necessitated attention.[4] These conditions made for a wage dependent population that sought out jobs in growing organizations. and environmental goals and is commonly associated with the voluntary and not-forprofit sectors. Rise of Organizations: Organizations. In addition to a shift to wage dependence.[3] As transportation became more efficient and technologies were further developed. and documentation. create. processes. crowded cities.[3] With this large . the pre-organizational system struggled to support the needs of the market. workplace accidents. self-sufficiency became an economically poor choice. they made up for in efficiency.

The development of organizations demands a higher level of skillset from workers as it continues to grow. marketing. Project Management-Gantt Chart: a type of bar chart developed by Henry Gantt that illustrates a project schedule. staff. family. and smallgroup production and regulation to large organizations and structure. . the historical and social context in which organizations rose in the United States allowed for not only the development of organizations. It also builds precautionary measures on cutting edge technology. but also allow for the evolution of innovative management and production techniques for other larger companies. externalities. and win new clients . planning and scheduling. Lean Systems 5. nurture and retain those the company already has. Overall. policies (principles or rules to guide decisions and achieve rational outcomes. and sales prospects where the overall goal is to find. they devour the smaller organizations that cannot keep up.). It amplifies the need for specialization and accounts of functionalism in various organizations and their respective societies. projects (a collaborative enterprise. that is carefully planned to achieve a particular aim. Workflow Improvement Theories: 1. Wage dependency. It is a concept that describes organization structure much like silos (unable to provide information reciprocity). Theory of Constraints Other workflow types 1. a group of people. and reduce the costs of marketing and client service. Customer Relationship Management (CRM): A widely implemented model for managing a company’s interactions with customers. teams (a group of people linked in a common purpose). but also for their spread and growth. attract. Through much advancement in the interaction of capitalistic bureaucracies. Workflows: It is a process that consists of a series of connected steps-a sequence of operations such as the work of a person. policies. functions (production. flow control. it exemplifies the cut-throat nature of capitalism. entice former clients to return. Six Sigma 2. and hierarchies.Organizations growth came the need for organizations and leadership that was not previously needed in small businesses and firms. and growth of industries all played in to the change from individual. As organizations develop. Business Process Reengineering 4. clients. etc. It can include processes. etc. and in-transit visibility. Even though the decline in small business might not seem to substantiate how the development in organizations leads to increased aggregate economic return. and hierarchies). A policy is an intent and is implemented as a procedure or protocol). HR. frequently involving research or design. the development of organizations is what has driven contemporary firms to thrive in its modern day society. Total Quality Management 3.

analytics. . non-profit and membership-based contact. Vendor Relationship Management (VRM): It is a business activity that allows customers to be independent of vendors and better able to engage with them.Organizations CRM processes can include sales force automation. integration and collaboration among departments and subsidiaries. scheduling. customer service and support (call center). social media. marketing.

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