organizational behaviour introduction to it.

introduction to organisation and its types

1. Introduction to Organizations

2. • What is an organization (from Multinationals to Non-Profit) • Importance of organizations • How do organizations create value Topics

3. Organizations are (1) social entities (2) are goal-directed (3) are designed as deliberately structured and coordinated and (4) are linked to the external environment The key element of an organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another. An organization exists when people interact with one another to perform essential functions that help attain goals. An organization cannot exist without interacting with customers, suppliers, competitors, and other external environment elements.

4. Components of Organizational Dynamics Organizational Structure : The design of the organization, including its hierarchy, reporting lines, and division of labor. Organizational Culture : The shared values, norms, and beliefs that shape behavior and guide decision-making. Leadership Styles : The approaches and behaviors of leaders in influencing and motivating others. Group Dynamics : The interactions and relationships within teams and workgroups, including communication patterns and conflict resolution. Change Dynamics : How the organization responds to and manages change, including resistance and adaptation.

5. The Significance of Organizational Dynamics

6. Major Stakeholder Groups and What They Expect

7. HOW DO BUSINESSES CREATE VALUE FOR STAKEHOLDERS? Why do customers purchase goods or services? Why do venture capitalists invest in certain startups? Why do employees choose to work at one company over another? The answer to these questions boils down to an essential business objective: Value creation Business leaders who want to increase their company’s profits must understand how to create value for their stakeholders.

8. Creating Value with the Value stick 1. Willingness to pay (WTP) The highest amount customers are willing to pay for a product or service. 2. Price The amount customers must pay for a product or service. 3. Cost The cost of producing a good or service. 4. Willingness to Sell (WTS) The minimum suppliers are willing to accept for the raw materials needed to produce goods or services. The gap between these categories is the value created for each stakeholder.

9. Contd … Customer delight is the gap between a customer’s WTP and a good or service’s price. The larger the gap, the happier the customers will be with the price. Business leaders who want to improve this metric can either increase a good or service's perceived value (increasing the customer's WTP) or increase its financial value (reducing its cost). A firm’s margin is the profit generated for the business. It reflects the gap between price and cost. Supplier surplus is represented by the gap between the cost of producing goods and services and the suppliers’ WTS. Business leaders tasked with creating value must focus on improving customer delight and supplier surplus without sacrificing the firm's margins.

10. Businesses by Type of Ownership 11 Factors to consider before choosing a form of ownership: Legal Liability Tax implications Future capital needs Cost of formation and ongoing administration Liability

11. Sole Proprietorship Pearson Education, Inc. 12 A business that is owned (and usually operated) by one person The simplest form of business ownership and the easiest to start Many large businesses began as small, struggling sole proprietorships The most popular form of business ownership

12. Partnership Pearson Education, Inc. 13 A voluntary association of two or more persons to act as co-owners of a business for profit Less common form of ownership than sole proprietorship or corporation Partnerships are usually a pooling of special talents or the result of a sole proprietor taking on a partner

13. Corporations A C corporation is a legal entity, separate from its owners. A corporation is usually a group of people or a company authorized by the state to act as a single entity and recognized in law for certain purposes. Stockholders own corporations.

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15. Limited Liability Company (LLC) Pearson Education, Inc. 16

16. Common types of business ownership Nonprofit corporation A nonprofit corporation operates to benefit a community or providing a social service. For someone to operate this form of ownership, they must prove to a government entity that their services benefit society. These corporations are typically charitable organizations in science, criminal justice, education, and humanitarian affairs.

17. Thank You