Week 1 Introduction of organisation

From the beginning of the week, we have learnt the introduction of organization. The organization can be defined as management of a business that needs to be able to make decisions and resolve issues in order to be both effective and beneficial. This is not only based on good teamwork, but also need to have potential businessmen who are willing to bear the risks.

Organizations work with one another which have its advantages and disadvantages, such as sharing ideas and risk factors, leading to a higher chance of gaining profit. However, there may be more argument between partners during the project.

 In order to be successful, a businessman needs to have a favorable interpersonal relationship. For example, a friend of mine is very intelligent but has extremely bad attitude. Therefore nobody wants to cooperate with him.

It is necessary for organization to have achievable objectives, for example expanding the business. This can be achieved by selling more goods and services to increase profit.

Moreover, excellent communication between manager and employee is essential for a well structured organization. This can be indicated by two different types of structure shown below.

Here are two organizations: Long chain of command and wide span of control. Each company establishes its own hierarchy or structure, so it’s easier to receive messages from the manager. Thus, it will lead to fewer mistakes.

Manager ought to consider the individual’s characteristic in its workforce, as some people have regional and culture difference leading to business barriers. On the other hand, they also need to analyse their individual degree or major to understand their character. Otherwise, it is not only losing the profit but also damage the reputation of the company.

In terms of Business Forms, there are several types of business such as Sole Trader, Partnerships, Private Limited Company, Public Limited Company, Social Enterprise and Charity. A type of liability that does not exceed the amount invested in a partnership or limited liability company and so on.  But unlimited liability is not included a maximum amount and responsibility to bear the amount of investment each owner has personally made such as sole trader. 

To sum up, I have learnt a lot of knowledge in terms of organization and business forms. It tells us the importance of an organization and the consequence of our decision.