Tag: Learning

Learning!

Learning is the process of acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences. 

Evidence that knowledge has occurred may see changes in behavior from simple to complex, from moving a finger to skill in synthesizing information, or a change in attitude.

The ability to know possess by humans, animals, and some machines. There is also evidence of some kind of knowledge in some plants.

Some learn immediately, induced by a single event (e.g. being burn by a hot stove), but much skill and knowledge accumulate from repeat experiences.

The changes induced by knowledge often last a lifetime, and it is hard to distinguish known material that seems to be “lost” from that which cannot retrieve.

Definition of learning for Students
1: the act of a person who gains knowledge or skill Travel is a learning experience.
2: knowledge or skill gained from teaching or study. They’re people of great knowledge.
-@ilearnlot.

  • Functions of Management by Henri Fayol

    Elements of Management by Henri Fayol

    Writer’s regarded the elements of management as the functions of management. He said that management should be viewed as a process consisting of five elements. You will Know about “14 Principles of Management by Henri Fayol” & also read “Nature and Characteristics of Management”.

    Fayol’s five Elements They are;

    • Planning.
    • Organising.
    • Commanding.
    • Coordination.
    • Controlling.

    He has regarded planning as the most important managerial function. Creation of organization structure and commanding function is necessary to execute plans. Coordination is necessary to make sure that everyone is working together, and control looks whether everything is proceeding according to the plan.

    These are Fayol’s five functions of management;

    Planning:

    Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the hardest of the five functions of management. This requires an active participation of the entire organization. With respect to time and implementation, planning must be linked to and coordinated on different levels. Planning must take the organization’s available resources and flexibility of personnel into consideration as this will guarantee continuity.

    Organizing:

    An organization can only function well if it is well-organized. This means that there must be sufficient capital, staff, and raw materials so that the organization can run smoothly and that it can build a good working structure. The organizational structure with a good division of functions and tasks is of crucial importance. When the number of functions increases, the organization will expand both horizontally and vertically. This requires a different type of leadership. Organizing is an important function of the five functions of management.

    Commanding:

    When given orders and clear working instructions, employees will know exactly what is required of them. Return from all employees will be optimized if they are given concrete instructions with respect to the activities that must be carried out by them. Successful managers have integrity, communicate clearly and base their decisions on regular audits. They are capable of motivating a team and encouraging employees to take initiative.

    Coordination:

    When all activities are harmonized, the organization will function better. Positive influencing of employees behavior is important in this. Coordination, therefore, aims at stimulating motivation and discipline within the group dynamics. This requires clear communication and good leadership. Only through positive employee behavior management can the intended objectives be achieved.

    Controlling:

    By verifying whether everything is going according to plan, the organization knows exactly whether the activities are carried out in conformity with the plan.

    Control takes place in a four-step process:

    • Establish performance standards based on organizational objectives.
    • Measure and report on actual performance.
    • Compare results with performance and standards.
    • Take corrective or preventive measures as needed.

    Each of these steps is about solving problems in a creative manner. Finding a creative solution is often more difficult than discovering what the problem is than making choices or the decision-making process. It starts with creating an environmental analysis of the organization and it ends with evaluating the results of the implemented solution.

  • 14 Principles of Management by Henri Fayol

    14 Principles of Management by Henri Fayol

    Explain, What is 14 Principles of Management by Henri Fayol?

    Meaning; Business administration is the management of a business. It includes all aspects of overseeing and supervising business operations and related field which include Accounting, Finance, and Marketing. Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization’s resources in order to achieve the objectives of that policy. Definition of Management “To manage is to forecast and to plan, to organize to command, to coordinate and to control; by Henri Fayol.” Read Many Definition of Management. Also learn, 14 Principles of Organization, 14 Principles of Management by Henri Fayol!

    Following the 14 Principles of Management by Henri Fayol are:

    • Division of Work: Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.
    • Authority: The right to issue commands, along with which must go the balanced responsibility for its function.
    • Discipline: Employees must obey, but this is two-sided employees will only obey orders if management plays their part by providing good leadership.
    • Unity of Command: Each worker should have only one boss with no other conflicting lines of command.
    • Unity of Direction: People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.
    • Subordination of individual interest (to the general interest): Management must see that the goals of the firms are always paramount.
    • Remuneration: Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.
    • Centralization & Decentralization: This is a matter of degree depending on the condition of the business and the quality of its personnel.
    • Scalar chain & Line of Authority: A hierarchy is necessary for the unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not over-stretch and consist of too many levels.
    • Order: Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieving through organization and selection.
    • Equity: In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.
    • Stability of Tenure of Personnel: Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.
    • Initiative: Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.
    • Esprit de Corps: Management must foster the morale of its employees. He further suggests that: “real talent’s need to coordinate the effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”
    14 Principles of Management by Henri Fayol - ilearnlot
    Thanks, Also, Photo Credit to pixabay.com/ More free Images!
  • Nature and Characteristics of Management

    Nature and Characteristics of Management

    What is Management? Define, Management is essential for an organized life and necessary to run all types of management. Also, Good management is the backbone of successful organizations. “Management is the art of getting things done through and with people in formally organized groups.” Managing life means getting things done to achieve life’s objectives and managing an organization means getting things done with and through other people to achieve its objectives. Nature and Characteristics of Management – Goal-oriented, Universal, Integrative Force, Social Process, Multidisciplinary, Continuous Process, Intangible, and Art as well as Science. So, what we discussing is –  The Topic of is Nature and the Characteristics of Management.

    Explain, The Nature and Characteristics of Management.

    The salient features which highlight the nature of management is as follows:

    • Goal-oriented.
    • Universal.
    • Integrative Force.
    • Social Process.
    • Multidisciplinary.
    • Continuous Process.
    • Intangible, and.
    • Art as well as Science.

    Now, Explain each one;

    Management goal-oriented:

    Management is not an end in itself. It is a means to achieve certain goals. Management has no justification to exist without goals. Also, Management goals call group goals or organizational goals. The basic goal of management is to ensure efficiency and economy in the utilization of human, physical and financial resources. The success of management measure by the extent to which one of the established goals achieved. Thus, management is purposeful.

    Management is universal:

    Management is an essential element of every organized activity irrespective of the size or type of activity. Wherever two or more persons engage in working for a common goal, management is necessary. All types of organizations, e.g., family, club, university, government, army, cricket team, or business, require management. Thus, management is a pervasive activity. The fundamental principles of management are applicable in all areas of organized effort. Also, Managers at all levels perform the same basic functions.

    Management is an Integrative Force:

    The essence of management lies in the coordination of individual efforts into a team. Also, Management reconciles the individual goals with organizational goals. As the unifying force, management creates a whole that is more than the sum of individual parts. Also, It integrates human and other resources.

    Management is a Social Process:

    Management is done by people, through people, and for people. It is a social process because it is concerned with interpersonal relations. The human factor is the most important element in management. According to Appley, “Management is the development of people not the direction of things. A good manager is a leader, not a boss. It is the pervasiveness of human element which gives management its special character as a social process”.

    Management is multidisciplinary:

    Management has to deal with human behavior under dynamic conditions. Therefore, it depends upon wide knowledge derived from several disciplines like engineering, sociology, psychology, economics, anthropology, etc. Also, The vast body of knowledge in management draws heavily upon other fields of study.

    Management is a continuous Process:

    Management is a dynamic and on-going process. The cycle of management continues to operate so long as there is an organized activity for the achievement of group goals.

    Management is Intangible:

    Management is an unseen or invisible force. It cannot see but its presence can be felt everywhere in the form of results. However, the managers who perform the functions of management are very much tangible and visible.

    Management is an Art as well as Science:

    It contains a systematic body of theoretical knowledge and it also involves the practical application of such knowledge. Management is also a discipline involving specialized training and an ethical code arising out of its social obligations. Based on these characteristics, management may be defined as a continuous social process involving the coordination of human and material resources to accomplish desired objectives. It involves both the determination and the accomplishment of organizational goals.

    Question & Answers:

    • Write Nature and Characteristics of Management?
    • Write Basic Nature and Characteristics of Management?
    • What is Nature of Management?
    • What is Characteristics of Management?
    • How to Explain the Nature and Characteristics of Management?
    Nature and Characteristics of Management
    Nature and Characteristics of Management. Image credit from #Pixabay.

  • Concepts of Management

    Concepts of Management:

    The term management has been interpreted in several ways; some of which are given below:

    Management as an Activity:

    Management is an activity just like playing, studying, teaching etc. As an activity, management has been defined as the art of getting things done through the efforts of other people. Management is a group activity wherein managers do to achieve the objectives of the group.

    The activities of management are:

    • Interpersonal activities
    • Decisional activities
    • Informative activities

    Management as a Process:

    Management is considered a process because it involves a series of interrelated functions. It consists of getting the objectives of an organization and taking steps to achieve objectives. The management process includes planning, organizing, staffing, directing and controlling functions.

    Management as a process has the following implications:

    (i) Social Process: Management involves interactions among people. Goals can be achieved only when relations between people are productive. The human factor is the most important part of the management.

    (ii) Integrated Process: Management brings human, physical and financial resources together to put into the effort. Management also integrates human efforts so as to maintain harmony among them.

    (iii) Continuous Process: Management involves continuous identifying and solving problems. It is repeated every now and then till the goal is achieved.

    (iv) Interactive process: Managerial functions are contained within each other. For example, when a manager prepares plans, he is also laying down standards for control.

    Management as an Economic Resource:

    Like land, labor, and capital, management is an important factor of production. Management occupies the central place among productive factors as it combines and coordinates all other resources.

    Management as a Team:

    As a group of persons, management consists of all those who have the responsibility for guiding and coordinating the efforts of other persons. These persons are called as managers who operate at different levels of authority (top, middle, operating). Some of these managers have the ownership stake in their firms while others have become managers by virtue of their training and experience. Civil servants and defense personnel who manage public sector undertakings are also part of the management team. As group managers have become an elite class in society occupying positions with enormous power and prestige.

    Management as an Academic Discipline:

    Management has emerged as a specialized branch of knowledge. It comprises principles and practices for effective management of organizations. Management has become as a very popular field of study as is evident from the great rush for admission into institutes of
    management. Management offers a very rewarding and challenging career.

    Management as a Group:

    Management means the group of persons occupying managerial positions. It refers to all those individuals who perform managerial functions. All the managers, e.g., chief executive (managing director), departmental heads, supervisors and so on are collectively known as
    management.

    For example, when one remarks that the management of Reliance Industries Ltd. is good, he is referring to the persons who are managing the company. There are several types of managers which are listed as under.

    1. Family managers who have become managers by virtue of their being owners or relatives of the owners of a company.
    2. Professional managers who have been appointed on account of their degree or diploma in management.
    3. Civil Servants who manage public sector undertakings.

    Managers have become a very powerful and respected group in modern society. This is because the senior managers of companies take decisions that affect the lives of a large number of people. For example, if the managers of Reliance Industries Limited decide to expand production it will create the job for thousands of people. Managers also help to improve the social life of the public and the economic progress of the country. Senior managers also enjoy a high standard of living in society. They have, therefore, become an elite group in the society.

    Question & Answers:

    • Write Concepts of Management?
    • Write Basic Concepts of Management?
    • What is Concepts of Management?
    • What is Process in Management?

  • Many Definitions of Management

    Definitions of Management:

    It is very difficult to give a precise definition of the term ‘management’. Different scholars from different disciplines view and interpret management from their own angles. The economists consider management as a resource like land, labor, capital and organization. The bureaucrats look upon it as a system of authority to achieve business goals. The sociologists consider managers as a part of the class elite in the society.

    The definitions by some of the leading management thinkers and practitioners are given below:

    (i) Management consists in guiding human and physical resources into dynamic, hard-hitting organization unit that attains its objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering the service. —Lawrence A. Appley.

    (ii) Management is the coordination of all resources through the process of planning, organizing, directing and controlling in order to attain stated objectives. —Henry L. Sisk.

    (iii) Management is principally the task of planning, coordinating, motivating and controlling the efforts of others towards a specific objective. —James L. Lundy.

    (iv) Management is the art and science of organizing and directing human efforts applied to control the forces and utilize the materials of nature for the benefit of man. —American Society of Mechanical Engineers.

    (v) Management is the creation and maintenance of an internal environment in an enterprise where individuals, working in groups, can perform efficiently and effectively towards the attainment of group goals. —Harold Koontz and Cyrill O’Donnell.

    (vi) Management is the art of knowing what you want to do and then seeing that it is done in the best and cheapest way. —F.W. Taylor.

    (vii) To manage is to forecast and to plan, to organize to command, to coordinate and to control. —Henry Fayol.

    (viii) Management is the function of executive leadership anywhere. —Ralph C. Davis.

    (ix) Management is concerned with seeing that the job gets done; its tasks all center on planning and guiding the operations that are going on in the enterprise. —E.F.L. Breach.

    (x) Management is a distinct process consisting of planning, organizing, actuating and controlling performed to determine and accomplish the objectives by the use of people and resources. —George R. Terry.

    (xi) Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served and with a high degree of morale and sense of attainment on the part of those rendering services. —American Management Association.

    (xii) Management is a multi-purpose organ that manages a business and manages Managers and manages Workers and work. —Peter Drucker.

    Question & Answers:

    • Write Definitions of Management?
    • Write Definitions of Management by Writer?
    • Write Basic Definitions of Management?
    • What is Definitions of Management?

    Note: Every Definition wrote by the different writer!

  • Organization in Types of Risk

    Organization in Types of Risk:

    Risk refers to sudden unplanned events which cause major disturbances in the organization and trigger a feeling of fear and threat amongst the employees.

    Organization in Types of Risk; Following are the types of Risk:

    1. Natural Risk
      • Disturbances in the environment and nature lead to natural Risk.
      • Such events are generally beyond the control of human beings.
      • Tornadoes, Earthquakes, Hurricanes, Landslides, Tsunamis, Flood, Drought all result in natural disaster.
    2. Technological Risk
      • Technological Risk arises as a result of the failure in technology. Problems in the overall systems lead to technological Risk.
      • Breakdown of machine, corrupted software and so on give rise to technological Risk.
    3. Confrontation Risk
      • Confrontation crises arise when employees fight amongst themselves. Individuals do not agree with each other and eventually depend on non-productive acts like boycotts, strikes for indefinite periods and so on.
      • In such a type of Risk, employees disobey superiors; give them ultimatums and force them to accept their demands.
      • Internal disputes, ineffective communication and lack of coordination give rise to confrontation Risk.
    4. Risk of Malevolence
      • Organizations face Risk of malevolence when some notorious employees take the help of criminal activities and extreme steps to fulfill their demands.
      • Acts like kidnapping company’s officials, false rumors all lead to Risk of malevolence.
    5. Risk of Organizational Misdeeds
      • Crises of organizational misdeeds arise when management takes certain decisions knowing the harmful consequences of the same towards the stakeholders and external parties.
      • In such cases, superiors ignore the after effects of strategies and implement the same for quick results.

    Organization in Types of Risk; A risk of organizational misdeeds can be further classified into following three types:

    • Risk of Skewed Management Values
      • A risk of Skewed Management Values arises when management supports short-term growth and ignores broader issues.
    1. Risk of Deception
      • Organizations face Risk of deception when management purposely tampers data and information.
      • Management makes fake promises and wrong commitments to the customers. Communicating wrong information about the organization and products lead to Risk of deception.
    2. Risk of Management Misconduct
      • Organizations face Risk of management misconduct when management indulges in deliberate acts of illegality like accepting bribes, passing on confidential information and so on.
    3. Risk due to Workplace Violence
      • Such a type of Risk arises when employees are indulged in violent acts such as beating employees, superiors in the office premises itself.
    4. Risk Due to Rumor’s
      • Spreading false rumors about the organization and brand lead to Risk. Employees must not spread anything which would tarnish the image of their organization.
    5. Bankruptcy
      • A Risk also arises when organizations fail to pay its creditors and other parties.
      • Lack of fund leads to Risk.
    6. Risk Due to Natural Factors
      • Disturbances in environment and nature such as hurricanes, volcanoes, storms, flood; droughts, earthquakes etc. result in Risk.
    7. Sudden Risk
      • As the name suggests, such situations arise all of a sudden and on an extremely short notice.
      • Managers do not get warning signals and such a situation is in most cases beyond any one’s control.
    8. Smoldering Risk
      • Neglecting minor issues, in the beginning, lead to smoldering Risk later.
      • Managers often can foresee Risk but they should not ignore the same and wait for someone else to take action.
      • Warn the employees immediately to avoid such a situation.

    Note: “Reading simple notes Organization in Types of Risk, also know about Risk Management and Risk Management Model“

  • Risk Management Model

    Risk Management Model:

    Risk refer to unplanned events which cause harm to the organization and lead to disturbances and major unrest amongst the employees.

    Risk gives rise to a feeling of fear and threat in the individuals who eventually lose interest and trust in the organization.

    Gonzalez-Herrero and Pratt proposed a Risk Management Model which identified three different stages of Risk management.

    According to Gonzalez-Herrero and Pratt, Risk management includes following three stages:

    • Diagnosis of Risk: The first stage involves detecting the early indicators of Risk. It is for the leaders and managers to sense the warning signals of a Risk and prepare the employees to face the same with courage and determination. Superiors must review the performance of their subordinates from time to time to know what they are up to.

    The role of a manager is not just to sit in closed cabins and shout on his subordinates. He must know what is happening around him. Monitoring the performance of the employee regularly helps the managers to foresee Risk and warn the employees against the negative consequences of the same. One should not ignore the alarming signals of Risk but take necessary actions to prevent it. Take initiative on your own. Don’t wait for others.

    • Planning: Once a Risk is being detected, Risk management team must immediately jump into action. Ask the employees not to panic. Devise relevant strategies to avoid an emergency situation. Sit and discuss with the related members to come out with a solution which would work best at the times of Risk. It is essential to take quick decisions. One needs to be alert and most importantly patient. Make sure your facts and figures are correct. Don’t rely on mere guess works and assumptions. It will cost you later.
    • Adjusting to Changes: Employees must adjust well to new situations and changes for the effective functioning of an organization in near future. It is important to analyze the causes which led to a Risk at the workplace. Mistakes should not be repeated and new plans and processes must be incorporated into the system.

    Simple Risk Management Model Chat:

    Risk Management Model Chat

    Structural Functions Systems Theory:

    According to structural functions systems theory, communication plays a pivotal role in Risk management. The correct flow of information across all hierarchies is essential. Transparency must be maintained at all levels. Management must effectively communicate with employees and provide them the necessary information at the times of Risk. Ignoring people does not help, instead, makes situations worse. Superiors must be in regular touch with subordinates. Leaders must take charge and ask the employees to give their best.

    Diffusion of innovation Theory:

    Diffusion of innovation theory proposed by Everett Rogers supports the sharing of information during emergency situations. As the name suggests during Risk each employee should think out of the box and come out with something innovative to overcome tough times. One should be ready with an alternate plan. Once an employee comes up with an innovative idea, he must not keep things to himself. Spread the idea amongst all employees and departments. Effective communication is essential to pass on ideas and information in its desired form.

    Unequal Human Capital Theory:

    An unequal human capital theory was proposed by James. According to unequal human capital theory, inequality amongst employees leads to Risk at the workplace. Discrimination on the grounds of caste, job profile as well as salary lead to frustrated employees who eventually play with the brand name, spread baseless rumors and earn a bad name for the organization.

  • What is Risk Management?

    What is Risk Management?

    Risk Management: What is Risk? A sudden and unexpected event leading to major unrest amongst the individuals at the workplace is called organization Risk. In other words, Risk is defined as an emergency situation which disturbs the employees as well as leads to instability in the organization. Risk affects an individual, group, organization or society on the whole.

    Know and Understand the Risk Management.

    Definition of Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or a combination of strategies) in proper management of future events.

    Characteristics of Risk:

    • The risk is a sequence of sudden disturbing events harming the organization.
    • Risk generally arises on short notice.
    • Risk triggers a feeling of fear and threat amongst individuals.

    Risk can arise in an organization due to any of the following reasons:

    • Technological failure and Breakdown of machines lead to Risk. Problems in the internet, corruption in the software, errors in passwords all result in Risk.
    • Risk arises when employees do not agree with each other and fight amongst themselves. Risk arises as a result of the boycott, strikes for indefinite periods, disputes and so on.
    • Violence, thefts, and terrorism at the workplace result in organization Risk.
    • Neglecting minor issues, in the beginning, can lead to major Risk and a situation of uncertainty at the workplace. The management must have complete control of its employees and should not adopt a casual attitude at work.
    • Illegal behaviors such as accepting bribes, frauds, data or information tampering all lead to organization Risk.
    • Risk arises when the organization fails to pay its creditors and declares itself a bankrupt organization.

    The art of dealing with sudden and unexpected events which disturb the employees, an organization as well as external clients refer to Risk Management.

    The process of handling unexpected and sudden changes in organizational culture is called Risk management.

    Need for Risk Management:

    • Risk Management prepares individuals to face unexpected developments and adverse conditions in the organization with courage and determination.
    • Employees adjust well to the sudden changes in the organization.
    • Employees can understand and analyze the causes of Risk and cope with it in the best possible way.
    • Risk Management helps the managers to devise strategies to come out of uncertain conditions and also decide on the future course of action.
    • Risk Management helps the managers to feel the early signs of Risk, warn the employees against the aftermaths and take necessary precautions for the same.

    What is Risk Management
    What is Risk Management? #Pixabay.

    Essential Featured of Risk Management:

    • Risk Management includes activities and processes which help the managers as well as employees to analyze and understand events which might lead to Risk and uncertainty in the organization.
    • Risk Management enables managers and employees to respond effectively to changes in the organizational culture.
    • It consists of effective coordination amongst the departments to overcome emergency situations.
    • Employees at the time of Risk must communicate effectively with each other and try their level best to overcome tough times. Points to keep in mind during Risk
    • Don’t panic or spread rumors around. Be patient.
    • At the time of Risk, the management should be in regular touch with the employees, external clients, stakeholders as well as media.
    • Avoid being too rigid. One should adapt well to changes and new situations.

    Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals.

    Risks can come from various sources including uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. There are two types of events i.e. negative events can be classified as risks while positive events are classified as opportunities.

    Several risk management standards have been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions, and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.

  • Types of Business

    Types of Business:

    There are three major types of businesses:

    1. Service Business

    A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products.

    Examples of service businesses are schools, repair shops, hair salons, banks, accounting firms, and law firms.

    1. Merchandising Business

    This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” businesses. They make the profit by selling the products at prices higher than their purchase costs.

    A merchandising business sells a product without changing its form. Examples are grocery stores, convenience stores, distributors, and other resellers.

    1. Manufacturing Business

    Unlike a merchandising business, a manufacturing business buys products with the intention of using them as materials in making a new product. Thus, there is a transformation of the products purchased.

    A manufacturing business combines raw materials, labor, and factory overhead in its production process. The manufactured goods will then be sold to customers.

    Hybrid Business

    Hybrid businesses are companies that may be classified in more than one type of business. A restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine (merchandising), and fills customer orders (service).

    Nonetheless, these companies may be classified according to their major business interest. In that case, restaurants are more of the service type – they provide dining services.

    Forms Types of Business Organization:

    These are the basic forms of business ownership:

    1. Sole Proprietorship

    A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership.

    The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of the owner if the business cannot pay them.

    The sole proprietorship form is usually adopted by small business entities.

    1. Partnership

    A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves.

    In general partnerships, all partners have unlimited liability. In limited partnerships, creditors cannot go after the personal assets of the limited partners.

    1. Corporation

    A corporation is a business organization that has a separate legal personality from its owners. Ownership in a stock corporation is represented by shares of stock.

    The owners (stockholders) enjoy limited liability but have limited involvement in the company’s operations. The board of directors, an elected group of the stockholders, controls the activities of the corporation.

    In addition to those basic forms of business ownership, these are some other types of organizations that are common today:

    Limited Liability Company:

    Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.

    Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.

    Cooperative:

    A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated.

    Some examples of cooperatives are water and electricity (utility) cooperatives, cooperative banking, credit unions, and housing cooperatives; This is simple types of business read and understanding, around world many many types of business run.

  • What is a Business? Introduction, Meaning, and Definition

    What is a Business? Introduction, Meaning, and Definition

    A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses as a form of economic activity are prevalent in capitalist economies, where most of them are privately own and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be social non-profit enterprises or state-owned public enterprises charged by governments with specific social and economic objectives.

    What is a Business? Introduction, Meaning, and Definition.

    Businesses owned by multiple individuals may form an incorporated company or jointly organized as a partnership. Countries have different laws that may ascribe different rights to various business entities.

    An organization or economic system where goods and services are exchanging for one another or money. Every enterprise requires some form of investment and enough customers to whom its output can sale consistently to make a profit. Businesses can privately own, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while mom-and-pop catering businesses a private enterprise.

    An enterprise is an organization or enterprising entity engaged in commercial, industrial or professional activities. A company transacts enterprise activities through the production of a good, offering of a service or retailing of already manufactured products. An enterprise can be a for-profit entity or a nonprofit organization that operates to fulfill a charitable mission.

    Nature:

    The term business comes from busyness or the state of being busy—any ac­tivity a man is busy about. Businesses an economic activity with the object of earning an income i.e. profit and thereby accumulate wealth. The eco­nomic activity must be regular and continuous.

    It involves:

    • Production of goods to sell them at a profit or
    • Merely purchase of goods to resell at a profit.

    The real object of any enterprise, as pointed by Peter Drucker is to create a customer and to ensure repeat sale which is possi­ble only when the customer can get due service and satisfaction in the market place where the exchange takes place in monetary terms.

    Concept:

    The following concept below are;

    History of Concept:

    In the old days, the enterprise was conceiving merely in terms of busi­ness. The enterprise of business is business. In those days the sole and exclusive objective of busi­ness was the maximization of profit at any cost.

    The business began merely as an institution for the pur­pose of making money. So long as man-made money and kept himself out of jail he was considering successful.

    He felt no particular obligation and acknowledge no responsibility to the community. As he was the owner of the enterprise he thought he has the perfect right to do with it what he, please.

    Modern Concept:

    The modern busi­ness enterprise is a social and economic institu­tion. It does not live in a vacuum. Enterprise by it­self is not an end but a means to achieve an end – i.e., public welfare. Urwick has rightly pointed out that profit can no longer be the main objective of a business than eating is the main objective of living.

    According to Peter Drucker, the objective of the business is to create a customer.

    The first business of every business is to se­cure customers. The customer is the master and to serve him well is the only purpose of business. An enterprise cannot survive without customers. Mod­ern business aims at a profit through service.

    What is a Business Introduction Meaning and Definition
    What is a Business? Introduction, Meaning, and Definition #Pixabay.

    Basic Definitions:

    • A person’s regular occupation, profession, or trade, an activity that someone engages in a person’s concern, work that has to finish or matters that have to attend to.
    • Commercial activity, trade considered in terms of its volume or profitability, a commercial house or firm.
    • A situation or series of events, typically a scandalous or discreditable one, a difficult matter. Action on stage other than dialogue. A very enjoyable or popular person or thing.

    Definition of Business:

    According to well-known professors William Pride, Robert Hughes, and Jack Kapoor, business is,

    “The organized effort of individuals to produce and sell, for a profit, the goods, and services that satisfy society’s needs.”

    A business, then, is an organization which seeks to make a profit through individuals working toward common goals. The goals of the business will vary based on the type of business and the business strategy being uses. Regardless of the preferred strategy, businesses must provide a service, product, or good. That meets a need of society in some way.