ORGANIZATION AND ITS CHARACTERISTICS

ORGANIZATION AND ITS CHARACTERISTICS

Robbins defines Organization as ' a consciously coordinated social unit, composed of two or more people, that functions as a relatively continuous basis to achieve common goals of set of goals.
Agrawal defines organization as ' a goal oriented open system composed of people, structure and technology.

From the above definitions, an organization has the following characteristics-

1. It is an open system.
2. It is a goal oriented.
3. It is a collection of people.
4. Organization consists of people.
5. Organization consists of technology, and
6. It has continuity.

Organization is an open system : An open system means open to environment. Organization exists and functions in environment. Environment compels the organization to acquire right type of people, technology and structure so that the goals to serve the environment can be attained. The organization is thus greatly influence the environment.

Usually the demands or wants of the people determines the strategies and goals of an organization. What are the needs in the market and how an organization can bring new and needy products to the market create an interaction between the organization and the environment. Without interaction, organization cannot fulfill required products or services to the users groups. This way, an organization is an open system, without which it cannot survive.

Organization is goal oriented : Without goal or set of goals, organization is useless. There is nothing for the organization to do. Therefore, the major characteristic of any organization is its goal. Type of people or technology is adopted so that the set goal can be achieved. The goal gives line of action; acquire required type of people and uses type of technology so that the goal is achieved in an anticipated time point. Without goal, organization cannot be formed.

Organization is a collection of people : People are the main performers in any organization. In other world, all the elements of any organization are the same except the people. Even with the same age, qualification, experience and facilities, the output of the people may vary, simply because the needs and wants of all people are not the same. What makes them work by heart and head is the one that differentiate organizations from one to others.

Organization consists of technology : Technology is the means of doing works. There are various kinds of doing works. As an organization consists of more people, its performance procedure should be of a fixed type so that each individual in the organization can exercise them well. This is how technology initiates. Technology eases the work and shortens the time. Technology originates a certain policy necessary to keep organizational beliefs in doings of the various people at different structural level. This saves the integrity of the people in achieving goals.

Organization has continuity : As the organization involves people, and the people generate different needs, they can leave the organization or some may die too. This does not affect the organization to stop or decrease in size. Hence, it is said that every organization has its own continuity. A good manager can leave but other better man can take over the charge of the organization.

ROLES OF MANAGEMENT

The roles of management or managerial roles are of the following three types in short-

a. Interpersonal roles,
b. Informational roles, and
c. Decision roles.

Interpersonal Roles :- The management needs to play interpersonal roles to maintain harmony in the organization. For this purpose, the management functions as a figurehead, a leader and a liaison in the organization. These three functions make the management playing an interpersonal role in the organization.

Informational Roles :- The management has all the information regarding to the organization. It has to provide or receive information regarding the organization. For this, it has to function as a spoke man, as an information news center and information disseminator.

Decision Roles :- The management has to play a role of decision maker in the organization. Under this decision-making role, the management functions as an entrepreneur, a disturbance handler, a resource allocator and a negotiator in the organization or out of the organization.

DIFFERENCES BETWEEN PARTNERSHIP AND JOINT STOCK COMPANY

Partnership and a company differ in many ways. Following are the main differences between them:

(1) Formation : A partnership is easily format without much expenses. The legal formalities for registration are simple and less time consuming. It is registered under Nepal partnership Act, 2020. A company is incorporated by registration under Company Act 2053. Lots of legal formalities have to be observed for registration of a company.

(2) Legal Entity : A partnership has no distinct legal entity. So the acts of the firm bind the partners and the acts of individual partners ordinarily bind the firm. But the company has a distinct legal entity separate from that of shareholders. It may act in its own right without making shareholders liable for it.


(3) Number of Members : The minimum number of partners in two and maximum number is not prescribed according to Partnership act. In a private company the minimum number of members can be one while the maximum number is fifty. In a public company minimum number is seven while there is the maximum limit.

(4) Liability : In partnership, the liability of the partners is unlimited and they are jointly and severally liable for the debts of the firm. The liability of the shareholders of a company is limited up to the face value of the shares purchased by them.

(5) Existence : A partnership does not have stable life and perpetual existence. But a company has a continuous and perpetual succession. The change of membership or death of bankruptcy of the member does not affects its existence.

(6) Transfer of Shares : A partner can transfer his share only with the consent of all partners. But shareholders of a company enjoy perfect freedom to transfer their shares. However, there is some restriction in a private company.

(7) Management : Every partner has the right to take part in the management of the firm. But in company every shareholder has no right to take part in the management. Instead they elect Board of Directors, who manages the company.

(8) Capital : In partnership, partners invest capital according to their wish and the consent of other partners. The capital of a company is divided into shares. It has no right to issue shares more than the authorized capital.

(9) Final Accounts and Audit : A partnership is not under statutory obligation for the preparation of final accounts and audit the books of accounts. However, final accounts of the company must be prepared, distributed among the shareholders and audited by a qualified auditor.

(10) Dissolution : A partnership is dissolved according to the agreement among partners or by the court. A company is dissolved only through legal procedures.