Business Organizations

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FORMS

OF
BUSINESS ORGANIZATION
 The form of a Business
Organization may depend on its purpose,
nature of operations and resources.
However, a business organizations form
may change with the changing times and
demands they present.
CHANGING FORMS OF BUSINESS
ORGANIZATIONS
 Change is constant and organizations
continue to undergo various changes to ensure
effectiveness, efficiency and relevance in the
world of business.
SIMPLE BUSINESS ORGANIZATIONS -
These refer to business organizations with few
departments, centralized authority with a wide span of
control, and with few formal rules and regulations.

FUNCTIONAL BUSINESS ORGANIZATIONS –


These pertain to business organizations that group together
those with similar or related specialized duties that introduce
the concept of delegation of authority to functional managers
like the personnel managers, sales manager, or financial
manager but allow CEO’s to retrain authority for strategic
decisions.
DIVISIONAL BUSINESS ORGANIZATIONS –
These are business organizations made up of seperate business
units that are semi-autonomous or semi-independent, with a
division head responsible for his or her unit’s performance.

PROFIT BUSINESS ORGANIZATIONS –


These are business organizations designed for the purpose of
achieving their organization’s mission, vision, goals, and
objectives and maintaining their organizational stability
through income generation and profit-making activities.
Immediate revenues or cost factors account for their success
or failure.
NONPROFIT ORGANIZATIONS-
These are business organizations designed for the purpose of
achieving their organizations’ mission, vission, goals, and
objectives, providing service to clients without expecting
monetary gains or financial benefits endeavors. Their success
or failure may be measured by the high or low evaluation
scores they obtain.

OPEN/FLEXIBLE BUSINESS ORGANIZATIONS -


These are formed to meet today’s changing work environment.
 Business organizations affect and are affected by
the environment ; therefore, change becomes inevitable.
Other forms of business organizations:

1. TEAM STRUCTURES – where the organization as a


whole is made up of work teams (small,but focused)
that work together to achieve the organization’s
purpose; popular in collectivist culture.
2. MATRIX BUSINESS ORGANIZATIONS - those which
assign experts or specialists belonging to different functional
departments to work together on one or more projects;
exhibit dual reporting relationships in which managers report
to two superior the functional manager and the divisional
manager.

3. PROJECT BUSINESS STRUCTURE – a business


organizational form with flexible design, where the
employees continously work on projects assigned to
them; projects may be short-term or long-term and
members disband when the projects is completed.
4. BOUNDARY BUSINESS ORGANIZATION – a business
organizations whose design eliminates

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