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FORMS OF OWNERSHIP

1. History of organisations. (the definition of an organisation, types of work, power and authority, delegation).

Early in human existence people learned that their individual ef­forts often fell short of success. The re­sult was that only limited goals could be attained. Therefore the necessi­ty of group activity was discovered relatively early in human existence.Group activity could be aimed at some higher, more complex set of goals and could thus bring greater benefits to all concerned. A system of group rela­tionships built upon and fostering cooperation, then, is basically the meaning of an organization.

Organization is an open, dynamic, purposeful social system of cooperation designed to enhance individual effort aimed at goal ac­complishment; consists of the human element, the physical element, the work element, and the coordination element; transforms resources into outputs for users.

Power is the ability to influence others successfully. It comes from any single or combination of possible sources. For example, one can have power over others because of one's intelligence, skill, or money.

Authority can be defined as power that has been given official recognition by the organization. Once an organization legally authorizes an individual to act on its behalf, that person is said to possess author­ity.

Delegation may be defined as the process of transferring an obligation (responsibility) and an accompanying right (authority) from a superior to a subordinate position in the organization. It is a so called tool for involvement people in working process. Delegation is needed because

· it is impossible to one person carry out all responsibilities;

· duties are made more properly while they are shared;

· it safes time.

1. Organisation types and forms.

There are many forms of business organization and the different terms can vary from one country to another.

A business organization is frequently referred to as a business enti­ty. A business entity is any business organization that exists as an eco­nomic unit. Business entities can be grouped according to the type of business activity they perform.

1. Service companies perform services for a fee. This group includes companies such as accounting firms, Jaw firms, repair shops, and many others.

2. Merchandising companies purchase goods that are ready for sale and sell them to customers. They include such companies as auto dealer­ships, clothing stores, and supermarkets.

3. Manufacturing companies buy materials, convert them into prod­ucts, and then sell the products to the companies or to the final customer. Examples are steel miles, auto manufacturers, and so on.

The business entity concept applies to all forms of businesses –single proprietorship, a partnership, and a corporation.