Business Organization essay

Last Updated: 12 Sep 2020
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An organization is a summary of people grouped, ordered, managed to meet a common goal.  (McNamara, 2007) Business organization is what we call a group tasked to perform business. It operates on business laws such as business contracts and integration, and property rights. ( There is no limit to the number of people a business organization can have.

No matter what number, all members perform activities based on expectations such as specified nature of tasks that go with a position, workflow and priorities set by the management. It works on a system. System refers to plans, processes and management. They also involve laws, strategies that can either be found in manuals or accepted as an order. (McNamara, 2007)

A business organization can have several groups working on different tasks. It can have subsystems depending on purpose. A group of people performing same tasks can be called a team. Based on functions (usually permanent tasks), they can be grouped as departments.  Work that usually involves specificities like time or people can be grouped as programs. An organizational chart is a simplified illustration of a business organization. (McNamara, 2007)

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Working together, members directly or indirectly affect each other. Thus, all members of a business organization have an idea (though they may vary in knowledge extent) of a business that is doing well. When everything seems repetitive, members can view organizations as machine. Others view their organization as an organism when things look dynamic and breakthroughs are made. Business organizations that have a strong support system (either established by company or employees), can be viewed as families. (McNamara, 2007)

Some people tend to dismiss business organization as an academic endeavor. The fact is that successful businesses have an organization in which players (managers and employees) have an understanding of their individual performance and the larger business picture. Individual performance must be aligned to the goals of an organization. The more conscious the players are, the more effective the organization or the better the output. (McNamara, 2007)

Business organizations operate in a wide range of sectors. In more ways than one, even government and socio-civic groups have business organization although non-profit). Business organizations operate in the following sectors. Beside them are the listed number of entities in

The examples of these organizations are:

  1. BioIndustry Association. It is called BIA. It deals with UK’s bioscience sector,
  2. British Venture Capital Association. It is called  BVCA deals with most of UK based private equity and venture capital firms, and
  3. Federation of Communication Services. It is called FCS. It deals with telecommunications services. (

There are different types of organizations. Based on business ownership, these are categorized as proprietorship, partnership, or corporation. ( The sole proprietorship, from the words used can be translated as one’s property and one’s operation. Since, it is a small business organization, the legal and budget requirements are also small. The management for this type of organization is flexible on a daily basis. Although sole proprietorship may have fewer worries on government regulation, it takes the full the weight of its business decisions. Problems may arise if one’s debts outweigh one’s investments. (

Partnership is business organization of two or more persons owning and sharing profits. Partners may be unequal in terms of roles or what it gives to a business. One may give more in terms of budget, logistics or supervision. Growth and performance facilitated. The prospect of acquiring additional capital is higher in a partnership than in proprietorship. It is because it is regarded to have wider range of capabilities in terms of management, resource, and skills. If the one of the partners cease to perform its duties (for various reasons), the partnership also ceases to exist. Business survival is likely to depend on new partnership. (

The corporation involves a complex structure, a capital stock and state approval. It is the most stable of the three in terms. For one, long term and additional capital is easier to acquire. It is not solely dependent on one or two persons in terms of management and skills. But forming and maintaining it is highly expensive. Taxation alone is high in corporation. (

For a company to be successful, it should define its strength and improve them further. The areas that are usually given stress are marketing, product innovation, and low-cost manufacturing. They are succesful because they keep their feet on the ground which translates to going into business only when they are sure they have the necessary corporate skills. (Pierce and Newstrom, 1993, p.72)

The most complex business organizations are those involving multinational corporations. The examples, according to rank, are: Exxon, General Motors, IBM, Mobil, and Ford Motor. (Certo, 2000, p., 79)


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Business Organization essay. (2018, Jan 12). Retrieved from

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