Introduction Flashcards
Definition of business
. Business is the sum of total activities which are connected
with the production or purchase and sale of goods and services with the main objective to earn profit.
Traditional concept
According to the traditional concept, business exists only to earn profits by providing the goods and services to the customers.
modern concept
According to the modern concept, the objective of every business is customer satisfaction,
Features of Business
Exchange of goods and services Dealing in numerous transactions Profit is the main Objective Risks and Uncertainties Buyer and Seller Connected with production Satisfying human wants
Objectives of Business
(a) Economic objectives
(b) Social objectives
(c) Human objectives
(d) National objectives
(e) Global objectives
Economic Objective
(i) Earning of adequate profits;
(ii) Exploring new markets and creation of more customers;
(iii) Growth and expansion of business operation;
(iv)Making innovations and improvements in goods and services; and
(v) Making use of available resources in the best possible manner.
Social objectives
(I) production and supply of quality goods and services to the society;
(ii) Making goods available at reasonable prices;
(iii) Avoidance of unfair practices like black-marketing, over-charging, etc.;
(iv) Contributing towards the general welfare and uplift of the society;
(v) Ensuring fair return to the investors.
Human Objectives.
(i) providing fair remuneration and incentives to the employees;
(ii) arrangement of better working conditions and proper work environment for the employees;
(iii) providing job satisfaction by making the jobs interesting and challenging, putting the right persons in right job;
(iv) providing the employees with more and more promotional opportunities;
(v) organizing training and development programs for the growth of the employees; and
National objectives
(d) National objectivesof business are the objectives of fulfilling the national goals and aspirations.
Some of the National objectives are:
(i) creation of employment opportunities;
(ii) promotion of social justice;
(iii) produce and supply goods in accordance with the national interest and priorities;
(iv) payment of taxes and other dues honestly and regularly;
(v) helping the state in maintaining law and order by promoting good industrial relations; and
(vi) implementing government’s economic and financial policies framed from time to time
Global objectives
(e) Global objectivesof business are the objectives of facing the challenges of global market.
Some of the global objectives are:
(i) making available globally competitive goods and services; and
(ii) reducing disparities among rich and poor nations by expanding its operations.
Organization
The task of organization is to unite or integrate these components effectively for the purpose of attaining the common goal
Organization According to Allen
Organization is the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.”
Organization According to Wheeler
Organization is the structural framework of duties and responsibilities required of personnel in performing various functions within the company”.
Organization structure
An organization structure explains the position and official relationships between the various individuals working in an organization
Organization Chart
The Diagrammatic presentation of the organization structure is known as an ‘organization chart’. It may show the names, designations and functions of the personnel in an organization.
