Business Organization &

Management

Prof. M. Bhaskara Rao

Visiting Professor, Dept. of Management Studies,
RGUKT, RK Valley, Idupulapaya
 Learning Objective
To understand the nature of business
organizations, Various types of business
organizations & their functioning

To understand the management principles &

practices in business/industrial organization

To get an overview of the organizational set-up &

its various crucial components
 Learning Outcomes
Understand theoretical aspects & its
applications to modern management practice
by learning from management cases

Demonstrate critical thinking when presented

with managerial issues & problems

Understand the importance of Professional

Management for effective utilization of resources
in an organization
 Unit-1:Introduction of Business &
Forms of Organization

Forms of Business Organization: Sole Proprietorship,

Joint Hindu Family Firm, Partnership firm, Joint Stock
Company, Cooperative society; Limited Liability
Partnership; Choice of Form of Orgn, Government -
Business Interface; Rationale & Forms of Public
Enterprises. International Business, Multinational
Corporations, Ethics in Business, Corporate Social
Responsibility, Business Sustainability
 Business Organization & Management
A business organization is an individual or group of
people that collaborate to achieve certain commercial
goals. Some business organizations are formed to earn
income for owners. Other business organizations,
called nonprofits, are formed for public purposes.

Management is the process of designing and

maintaining an environment in which individuals,
working together in groups,efficiently accomplish
selected aims.
 Managerial Functions
As managers, people carry out the managerial functions of

Planning
Organizing
Staffing
Directing &
Controlling
 Evolution of
Management Thought
Many different contributions of
writers and practitioners have
resulted in different approaches
to management and these make
up a management theory.
Pioneers of Modern Management
Frederick W. Taylor
Henry Fayol
Henry L. Gantt
Frank and Lillian Gilbreth
Max Weber
Hugo Munsterberg
Abraham H Maslow
Peter F Drucker
Abraham H. Maslow
 Business Organization
It is a process of establishing effective co operation
between the factors of production for producing goods or
services to earn profit.
In the present age production and distribution activities
are increasing day by day with the rise in world
population standard of living is also improving due to the
business activities.
Business organization consists of the skillful activities of
the business man which are helpful for promoting the
trade commerce and industry.
Business organization plays very effective role for the
business development.
5 Ms of an Organization
Men
Materials
Machines
Methods
Money
 Forms of Business Organization

Sole Proprietorship
Cooperative Society
Joint Hindu Family Firm
Corporation
General Partnerships,
Limited Partnerships (LP) and
Limited Liability Partnerships (LLP)
 Business Ethics
What is Business Ethics ?
Why Business Ethics is important ?
Ethics in Managing
Code of Ethics for Govt. service
Factors that raise ethical standards
 Ethics in Managing
Ethics is defined as the discipline
dealing with what is good and bad
and with moral duty and obligation

All persons, whether in business,

government, University, or any other
enterprise are concerned with ethics
 Business Ethics
Business Ethics is concerned with a
systematic study of morals, truth & justice

It strives to provide methods to distinguish

between actions and attitudes that are
detrimental for business and those that are
sound ethically and inspire business
 Why Business Ethics is important ?

Power & influence of business in society

Potential to provide major contribution to society
Potential to inflict harm
Increasing demand from stakeholders
Lack of business ethics education or training
Continued occurrence of ethical infractions
Corporate Social Responsibilty
What is Corporate Social Responsibilty?
Why Corporate Social Responsibilty is important?

Theories of Corporate Social Responsibilty

Corporate Philanthropy

The Corporate Social Responsibilty hierarchy

 Corporate Social Responsibilty
A view of the corporation and its role in the
society that assumes a responsibility among
firms to pursue goals in addition to profit
maximization & a responsibilty among a firms
stakeholders to hold the firm accountable for
its actions
Since corporates are part of the society and
sustainable environment, they need to give
back to the society
 Corporate Philanthropy
Philanthropy : the practice of helping people in
need (COD)
Corporate Philanthropy; The desire of profit
making organizations to help people in need or
promote welfare of the people in distress
Companies Act of India, 2013 requires companies
with annual turnover of Rs 1000cr or more or
Networth of Rs 5000cr or more or with annual
profit of Rs 5cror more to give 2% of their profit
 The CSR Hierarchy
Economic Responsibility : to produce an
acceptable return on its investments
Legal Responsibility : A duty to act within the
legal framework drawn up by the govt.
Ethical Responsibility :To do no harm to its
stakeholders & with in its operating env.
Discretionary Responsibility :Proactive, strategic
behaviour that can benefit the firm & society or both