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Forms of Business Organizations

This document discusses different forms of business organizations. It describes traditional forms like simple, functional, and divisional organizations. It also covers profit and nonprofit organizations. Additionally, it outlines open/flexible forms such as team structures, matrix organizations, project-based structures, and boundaryless and visual organizations. Finally, it lists the basic legal forms of business in the Philippines: single proprietorship, partnerships, corporations, and cooperatives.

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Rosel Sariego
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279 views21 pages

Forms of Business Organizations

This document discusses different forms of business organizations. It describes traditional forms like simple, functional, and divisional organizations. It also covers profit and nonprofit organizations. Additionally, it outlines open/flexible forms such as team structures, matrix organizations, project-based structures, and boundaryless and visual organizations. Finally, it lists the basic legal forms of business in the Philippines: single proprietorship, partnerships, corporations, and cooperatives.

Uploaded by

Rosel Sariego
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FORMS OF BUSINESS

ORGANIZATIONS
ORGANIZATIONS

 a collection of people working together to


achieve a common purpose
BUSINESS ORGANIZATION

 a collection of people working together to achieve a


common purpose in relation to their organization’s
mission, vision, goals and objectives, sharing a common
organizational culture
ORGANIZATIONAL CULTURE

 the set of beliefs and values shared by


organization members which guide them as they
work together to achieve their common purpose
FORM OF BUSINESS ORGANIZATIONS
according to Robbins AND Coulter (2009)
1.Traditional
a. Simple Business Organizations
b. Functional Business Organizations
c. Divisional Business Organizations
d. Profit Business Organizations
e. Nonprofit Business Organizations
2. Open/flexible Business Organizations
TRADITIONAL
Business
Organizations
Simple Business Organizations

 these refer to business organizations with


few departments, centralized authority
with a wide span of control, and with a
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 manager like the personnel
manager, sales manager, or financial manager but
allow CEO’s to retain authority for strategic
Divisional Business Organizations

 these are business organizations made up of


separate 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
Nonprofit Business Organizations

 these are business organizations designated for


the purpose of achieving their organizations
mission’s, vision, goals, and objectives, providing
service to clients without expecting monetary
gains or financial benefits for their endeavours.
OPEN/FLEXIBLE
BUSINESS
ORGANIZATIONS
Open/flexible Business Organizations

 these are formed to meet today’s


changing work environment
OTHER FORMS OF BUSINESS ORGANIZATIONS

1. Team Structures
2. Matrix Business Organizations
3. Project Business Structure
4. Boundaryless Business Organizations
5. Visual Business Organizations
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


Matrix Business Organizations
 those which assign experts or specialist belonging
to different functional department to work together
on one or more projects
 exhibit dual reporting relationships in which
managers report to two superiors – the functional
manager and the divisional manager
Project Business Structure

 a business organizational form with a flexible


design, where the employees continuously work
on projects assigned to them
 projects maybe short-term o long term and
members disband when the project is completed
Boundaryless Business Organizations

 a business organization whose design eliminates


vertical, horizontal or external boundaries and is
described to be flexible and unstructured
 there are no barriers to information flow and
therefore, completion of work is fast
Visual Business Organizations

 made up of a small group of full-time workers


and outside experts who are hired on a
temporary basis to work on assigned projects

 members usually communicate online


BASIC FORMS OF BUSINESS THAT ARE
LEGAL IN THE PHILIPPINES

a. Single Proprietorship
b. Partnerships
c. Corporation
d. Cooperative

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