Legal Forms of Organizations Overview

A business structure where one person owns and runs the entire operation, taking on all financial responsibility.

A business structure with two or more owners, sharing the financial burden and decision-making.

A business structure where the company is a separate legal entity from its owners, with limited liability for investors.

A business structure where members have equal ownership and share profits and losses equally.

The process of identifying, grouping, and assigning tasks to managers within an organization.

The essential tasks or activities that an organization undertakes to achieve its goals.

The potential impact of a task's failure on an organization's overall success.

The identification of areas within a company where exceptional performance is needed for success.

The set of values that are considered essential to a company's culture and success.

Dividing an organization into smaller units based on specific functions, products, geography, or customer types.

The first stage of departmentalization, suitable for very small businesses with limited employees, often a sole proprietor.

Organizing by specialized functions, such as marketing, finance, or production. Larger organizations may have sub-functions within departments.

Grouping departments based on distinct product lines, each requiring unique production or marketing methods.

Structuring an organization based on geographical regions to manage sales or operations in diverse areas.

Categorizing departments based on customer types, each requiring distinct marketing and sales strategies.

The number of employees reporting directly to a single manager or supervisor.

A manager with a smaller span of control oversees fewer employees, leading to a hierarchical structure with many levels.

A manager with a larger span of control manages more employees, creating a flatter organization with fewer layers of management.

Factors that influence the appropriate span of control, including the training level of subordinates, the complexity of tasks, and the dynamic nature of work.

Support staff, including their availability and competence, influence the amount of supervision necessary.

A wider span of control, managing 20-30 subordinates, can bring benefits like lower administrative costs, improved communication, faster decision-making, and a more efficient organization. However, it requires enhanced training, communication, and leadership at all levels.

Core functions directly contributing to the organization's mission and goals.

Functions that support line functions by providing services or advice, helping them achieve their goals.

Hierarchical relationships between superiors and subordinates within the organization.

A type of organizational structure that thrives on flexibility, adaptability, and decentralized decision-making. It is often found in startups and rapidly changing environments.

A type of organizational structure focused on efficiency, standardization, and centralized decision-making. It is often found in large, established corporations.

A small group of people dedicated to a shared goal, who are mutually accountable for achieving it and leverage complementary skills.

Teams that are formed for a specific purpose and disbanded once that purpose is achieved.

Teams that involve members from different functional areas or departments within an organization.