Organisation An organisation is an arrangement where a collection of people with a set of shared objectives create a formalisation group. E.g.

: APSS, Sri Lanka Cricket Organisations are from to provide goods & services (or both) to people. Purpose of Organisation 1. Time saving- With the help of collective efforts & economies of scale, considerable time can be saved 2. Division of Labour- Individuals working in an organisation are required to concentrate on the task they are best at. 3. Synergistic Effect- In a successful organisation, the output quality/quantity is higher than the inputs together. (2+2=5) 4. Knowledge sharing- Since an org is collection of employees with diverse skills sets, employees can learn from each other about various tasks, and thus enhance their knowledge base on an on-going basis. 5. Satisfying social needs- Org provides a platform where people can come together and interact and share their feeling, ideas and options 6. Economic Objectives- the economic objectives spell out the objectives relating to the money earning capacity of the business and includes profit making, creating and maintaining customers & innovation and development. 7. Social Objectives- These objectives relate to the responsibilities of the business entity towards society and it includes the following Employment to the society Quality good/ Services at affordable prices Fair returns to investors Society development

Common features in organisations 1. Name-Every org has a unique name, which is non-personal in nature and services as its identity. Name of orgs may include words /phrases reflecting their functions. 2. Common Goal 3. Vision- A vision statement defines an orgs purpose in terms of its value. It is long term nature and outlines the desired or indented future state of the org. 4. Mission- Mission statement outlines how an org plans to complete and deliver value to its customer and thus, attain its vision. 5. Strategies- Strategies define the long term direction and scope of org to meet stakeholder expectations. They describe how org intend to succeed in their chosen market place against their competitors. 6. Org Structure- Organisation structure refers to framework depicting the way work is organised and control is exercised in an organisation. It outlines the ways in which work

roles are allocated, responsibilities are delegated and efforts are coordinated in formal setting 7. Rules & Regulations- Every org has its sets of rules and regulations, framed for the general business conduct. Rules are aimed at their emphasising on business structure or controlling behaviour of members. 8. Org Culture- Org culture refers to the personality of an org. It describes how an org organises itself, its rules, procedures, beliefs, stated and unstated values, customs and rituals, metaphors and symbols, ect. Culture provides a framework that enables employees to work together in achieving their own departmental goals, as well as goals of company. 9. Division of Labour- The entire task of an org may be broken down into sub tasks or activities and these different activities are performed by different people, in accordance with their specialisation. How org differ one to other 1. Ownership and Control- Orgs differ on the basis of their ownership and control. 2. Legal Status- Orgs can be classified depending upon the statute under which they are formed. 3. Activity Undertaken- Different orgs engage in different types of activities. Activities undertaken can be broadly classified as manufacturing & services. 4. For Profit/Non profit- The primary aim of some org is profit maximisation, whereas some organisation may exist for providing to the society.(Non-profit) 5. Sources of Finance- Different orgs pool up finance from different sources, like , issuing shares, debentures , borrowing from banks and other financial institutions. 6. Operating Capacity- Org also differ based on their size of operations. 7. Level of technology involved- The type and level of technology used by firms can be used as a base to differentiate between them.

Types of Business