BUSINESS ORGANIZATIO

N AND MANAGEMEN

T

BUSINESS ORGANIZATIONS

They create investments, employments, production, and incomes.

They make and supply goods and services to the economy.

Peter Drucker, a management specialist

said that The purpose of business is to create customer.

William Stanton, a marketing expert

stated that The wants of the customers should be identified and satisfied.

MAJOR FORMS OF BUSINESS

ORGANIZATION

SINGLE OR SOLE PROPRIETORSHIP

-It is a form of organization which is owned by one person.

EXAMPLES

PARTNERSHIP

-It is a form of business organization in which two or more persons agree to own and operate a business.

CORPORATION

-It is a legal entity, distinct and separate from individuals who own it.

EXAMPLES

Multinational Corporations

Multinational Corporations

MULTINATIONAL CORPORATIONS

Control production, financing, processing and marketing of all essentials goods all over the world.Examples:

COOPERATIVE  is a business organization owned and operated by a group of individuals for their mutual benefit.

SIMILARITIES BETWEEN A COOPERATIVE AND A CORPORATION ARE:

Factors of production are privately owned and managed.

Both depend on business efficiency to survive in a competitive market.

Their activities and operations are both regulated and supervised by the government.

Both enjoy a reasonable degree of economic freedoms

DIFFERENCE BETWEEN A COOPERATIVE AND A CORPORATION ARE:

A cooperative is for service while a corporation is for profit.

Membership in a cooperative is open and voluntary while in a corporation membership is only for wealthy relatives and friends.

Government in a cooperative is democratic. It is one man one vote and no proxy voting. In the case of a corporation, it is one share one vote, and more shares more votes. It is the rule of the minority(richer members).

Savings or net profits are refunded to the members of a cooperative on the basis of their individual patronage while in a corporation, profits are distributed to the stockholders on the basis of number of their shares.

BUSINESS MANAGEMENT

B U S I N E S S M A N A G E M E N T

The activities associated with running a company, such as controlling, leading, monitoring, organizing, and planning.

The success of a business organization depends on proper management.

Resources of the Organization:

Manpower Money Machines Materials

Karl Marx said:

What the employer has to pay the worker is only enough to keep the worker alive. What he collects from the customer is the true value of the labor put into the article. The capitalist, in the process of accumulating wealth for himself, therefore robs and exploits the worker.

THE JOBS OF MANAGEMENT

THE JOBS OF MANAGEMENT

Peter Drucker

Management is primarily an economic organ.

The role of economics in business management is very vital.

Economic analysis is needed in planning and operations of the business organization.

The first job of management is managing a business

The other jobs are managing managers, and managing worker and work.

The three jobs of management are integrated, and are interdependent.

JAPANESE STYLE OF MANAGEMENT

1. Lifetime Employment System

2. Company-based Unions

THREE SOCIAL RESPONSIBILITIES OF

MANAGEMENT

1. for the company

2. for their employees

3. for the customers