BUSINESS ORGANISATION
BBA I sem
MOHIT SAHARAN
ASSISTANT PROFESSOR
UNIT I
Meaning and definition of business
essentials & scope of business
Classification of Business Activities,
Meaning, Definition, Characteristics
and objectives of Business
Organisation, Evolution of Business
Organisation . Modern Business,
Business & Profession.
HUMAN ACTIVITIES
Human Activities can be classified into two
categories viz.
1. Economic Activities and
2. Non-Economic Activities.
1. Economic Activities
The Activities related to production, Exchange,
distribution and consumption of wealth are known as
Economic Activities
These Activities may be undertaken to produce
something for or consumption or to earn income to
buy goods from the market.
For example- A doctor attending to his patients and a
shopkeeper selling goods to his customers.
2. Non- Economic Activities
Allhuman activities which are related to
wealth or assets are known as non economic
activities.
Those activities which are related to social
welfare are termed as non-economic activities.
These activities takes initiatives to satisfy
sentimental pleasures.
Activities involved are social, charity, etc.
Types of Economic Activities
1)Profession
2)Employment
3)Business
1. Profession
The term profession refers to the activities
which require special knowledge and skill to be
a master by individuals in their work for a
living.
For example- Doctors are engaged in medical
profession, Lawyers are engaged in legal
profession, teachers are engaged in teaching
profession etc.
2. Employment
When a person works regularly for
another person and gets salary in return
he is said to be in employment.
For example- companies appoint
managers, hospitals appoint doctors or
any enterprise appoints employees.
3. Business
The term business means the state of being busy.
Business refers to a set of organised activities for
production of various goods and services and their
exchange for money.
This way business creates utilities by producing and
selling goods and services to satisfy human wants.
Thus business includes all activities connected with
production, trade, banking, insurance, finance,
agency, advertising, packaging and other related
activities.
Definition of Business
According to F.C. Hooper
“ The complex
field of commerce and industry, the basic
industry’s like processing and manufacturing
industries and network of service,
distribution, banking, insurance, transport
and so on which serves the world of
business”.
Nature of business
1)Sale or exchange of goods and
services.
2)Regularity or continuity of dealing
3)Profit motive
4)Risk and uncertainty
5)Social Objectives
Objectives of business
1)Economic Objectives
2)Social Objectives
3)Human Objectives
4)National Objectives
1. Economic Objectives
i. Earning Adequate profits
ii.Exploring New Markets
iii.Innovation
2. Social Objective
i. Generation of Employment
ii.Production of standard quality goods
iii.Providing goods at reasonable prices
iv.Fair return to investors
v. Contribution to community development
3. Human Objective
i. FairDeal with employees
ii.Participation of Management
iii.Job Satisfaction
4. National Objective
i. Social Justice
ii.Production according to national
priorities
iii.Regular payment of taxes
iv.Proper use of national resources
Business Organisation
The modern society is a society of organisations. Organisations affect our from
childhood to adulthood to old age.
A child takes birth in an organisation (hospital), attains education in an
organisation (Schools / colleges), earns lively hood in an
organisation(corporate/ non corporate world) and meets his daily
requirements also through organisations (those producing and selling goods
and services).
Our constant interaction with organisations (business/ non business) makes
the need to study organisations essential and important.
Organisation is a collective group of people who work together on a
continuous basis in order to achieve an intended goal.
Definition of Business organisation
According to Chester Barnard-
“Organisation is a system of
consciously coordinated activities or forces of two or more persons”.
According to SP Robbins-
“ An organisation is a consciously
coordinated social unit, composed of two or more people, that
functions on a relatively continuous basis to achieve a common goal or
set of goals”.
Features of business organisation
1) It is a unit composed of two or more people.
2) The people who make an organisation share common values,
beliefs and goals.
3) It
has a separate identity; distinct from its members. It can
enter into agreements in its own name.
4) It
is always a goal oriented. The goal may, however, be profit or
service.
5) Though goals of members are subordinate to those of the
organisations, every organisation strives to maximise both
individual and organisational goals.
Types of Business Organisation
1)Business and Non-Business organisation
2)Primary and Secondary organisation
3)Formal and Informal organisation
Functions of Business Organisation
1)Production Function
2)Marketing Function
3)Finance Function
4)Personnel Function
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