Chapter 16: Organizing the business operation Flashcards
(37 cards)
Describe: limited liability company
Limited Company (Aktiebolag): Funded by capital from multiple owners who hold shares in the company.
Describe: sole proprietorship
Sole Proprietorship (Enskild firma): Operated by a single individual. The business assets are directly linked to the owner’s personal assets.
Describe: limited partnership
One partner has unlimited liability (general partner), while others have limited liability, risking only their investment (limited partners).
Describe: partnership
A partnership (handelsbolag) is a business structure where two or more individuals or entities share ownership, responsibilities, and liabilities equally.
Describe: economic association
A cooperative where members work together to achieve common economic goals, sharing profits and responsibilities
Describe: non-profit association
Nonprofit Association (Ideell förening): Operates through various types of activities to support its cause, such as charities or sports clubs.
Describe: consortium
Consortium (Konsortium): A group of individuals or companies collaborating on a project requiring capital. It is not a separate legal entity but is governed by an agreement dividing financial rights and responsibilities among members.
What is an organization?
- structured group of people working together to achieve common goals, which can include companies, non-profits, and other entities
- performs tasks in a structured manner.
How are the conditions of an organization affected by its external environment? Use examples.
An organization can be influenced by its environment through various traditions, norms, and external demands. For example, a court is expected to make accurate decisions, and its reputation may vary based on its performance in the eyes of the public and stakeholders.
How are the conditions of an organization affected by its type of operations? Use examples.
The nature of a business, such as its technical content and production volume, affects the organization’s conditions by determining how it is structured. For example, a small organization, like an artist, may have a large scope of activities, while a large organization, like a hospital, might have a smaller operational focus.
What is an organizational structure?
system that defines how tasks, roles, and responsibilities are arranged and coordinated within a company.
Describe various means of coordinating and managing the activities carried out in a larger company.
- establishing organizational roles
- creating rules
- setting norms and values.
Describe: mutual adjustment
Coordination occurs through direct communication between involved parties, who adjust their actions based on interactions.
Describe: direct supervision
A single individual oversees and directs tasks, ensuring orders are followed.
Describe: standardization of work processes
Coordination is managed by detailing the work content through rules and instructions (which may be integrated into technical tools like computer systems.)
Describe: standardization of “output”
Coordination is based on clearly defined work results, such as those produced by an assembly line.
Describe: standardization of knowledge and skills
Coordination relies on ensuring that participants have specific training or qualifications, allowing for smoother coordination without starting from scratch each time.
What is a formal and informal organizational structure and how do these affect each other in a company?
The formal organizational structure is the intentional way tasks are divided and coordinated to achieve company goals efficiently. It includes job descriptions, procedures, and instructions.
The informal organizational structure involves daily interactions such as personal contacts, friendships, training, and shared interests among employees.
Both structures coexist and influence each other within the organization.
Describe: position
A position in an organizational chart represents a specific role or job within a company. It shows where an individual fits within the overall structure of the organization and often includes details about their responsibilities and who they report to.
describe: authority
Each position has defined authorities or powers that are to be exercised, and a position encompasses multiple authorities
describe: delegating responsibility
A position holder can delegate tasks to subordinates, but cannot transfer the responsibility for the authority.
describe: functional structure
Common in industrial companies. Tasks are divided into main areas (e.g., product development, manufacturing, sales). Employees develop expertise in these areas, creating specialized departments that work towards long-term skill development.
describe: product structure
Used when a company produces significantly different products. Each product line has its own departments for purchasing, production, and sales, requiring specialized skills in each product area.
describe: customer structure
Departments are organized by customer categories (e.g., corporate clients vs. consumers). This simplifies customer interactions by reducing the number of contact points.
