Forms of Business Organization

Organization and Management

Janis A. Jose
1. Simple Business Organization
–Business with few departments,
centralized authority with wide
span of control, and few formal
rules and regulations.
2. Functional Business Organization

–Group together those with

similar or related specialized
duties that introduce the
concept of delegation of
authority to functional
managers.
3. Divisional Business Organization

–Made up of separate business

units that are semi-autonomous
or semi independent, with a
division head responsible for
units performance.
4. Profit Business Organization
–Designed for a purpose of
achieving organizations’
mission, vision, goals and
objectives and maintaining the
organizational stability through
income generation and profit-
making activities.
 5. Non-profit organization
–Designed for the purpose of to
achieve organizations mission,
vision, goals and objectives
providing service to clients without
expecting monetary gains or
financial benefits for their
endeavors.
6. Open / Flexible Business Organizations
– Formed to meet changings work environment.

a. Team Structures: Organization is made up od

work teams, that work together to achieve the
organization’s purpose.
b. Matrix Business Structures: assigned experts or
specialist belonging to different functional
departments to work together .
c. .
6. Open / Flexible Business Organizations
c. Project Business Structure: Business with a
flexible design, where employees continue to
work on project assigned to them; the members
were disband when the project is completed.
d. Boundary less Business Organization: design
eliminate boundaries, flexible and un structure;
no barriers to the flow of information.
e. Virtual Business Organization: small group of
full-time workers and outside expert hired
temporarily to worked on specific task or
projects; members where disperse and work
electronically.