Lecture-2.pptx Free Preparation for professional practice of CS
- 2. The Agenda •Legal Forms of Organizations • Companies • Organizing an Organization • Management
- 3. Organization •An organized group of people with a particular purpose, such as a business or government department.
- 4. Organization •It is impossible to live in a civilized society without close contact with many large organizations such as •Schools •Universities •Government departments •Health service •Commercial and industrial companies
- 5. Legal Form of Organization •Fundamentally the law recognizes individuals that is the individuals has a legal existence. •• They can •enter into the contracts which can be enforced by the courts •Sued for damages • Give evidences.
- 6. Legal Form of Organization •Organizations should also be given legal existence separate from that of its proprietors....and that is done through a process known as “Incorporation”. •After adopting any specific legal configuration, organizations take different legal forms. •Four basic legal forms of organization are Sole Proprietorship; Partnerships; Corporations and Limited Liability Company.
- 7. Sole Proprietorship • The vast majority of small businesses start out as sole proprietorships. • These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. • Sole proprietorships own all the assets of the business and the profits generated by it. • They also assume complete responsibility for any of its liabilities or debts. • In the eyes of the law and the public, you are one in the same with the business.
- 8. Partnership • In a Partnership, two or more people share ownership of a single business. • Like proprietorships, the law does not distinguish between the business and its owners. • The Partners should have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved, how future partners will be admitted to the partnership or what steps will be taken to dissolve the partnership when needed. • They also must decide up front how much time and capital each will contribute, etc.
- 9. Corporation • A Corporation, chartered by the state in which it is headquartered, is considered by law to be a unique entity, separate and apart from those who own it. • A Corporation can be taxed; it can be sued; it can enter into contractual agreements. • The owners of a corporation are its shareholders. • The shareholders elect a board of directors to oversee the major policies and decisions. • The corporation has a life of its own and does not dissolve when ownership changes.
- 10. Limited Liability Company (LLC) •The LLC is a relatively new type of hybrid business structure. •It is designed to provide limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. •Formation is more complex and formal than that of a general partnership. •Price water house coopers, Mars, Cox Enterprises, Toys 'R' Us, Aramark, trump Organization, Dollar General
- 11. Companies •For most business purposes, it is desirable to have an organization which has its own legal existence separate from that of its proprietors. The law governing this is contained in the Companies Acts 1985 and 1989.
- 12. Companies •A company is a legal entity made up of an •association of people. •Company members share a common purpose, and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals.
- 13. Companies •Public companies are allowed to offer their share to the public and their names must end with the word “Public limited company”. •• A public company has a minimum paid up capital of Rs. 5 lacs. •There is no limit for the number of members. •Examples of public companies include Google Inc., F5 Networks Inc., Chevron Corporation, and Procter & Gamble Co.
- 14. Companies •A private company cannot offer its shares to the public and its name must end with the word “limited”. •It has a minimum paid up capital of Rs. 1 lac. •It has limited members up to 200. •It prohibits any invitation from public for subscription to shares and any acceptance of deposits from persons other than members or directors.
- 15. Companies •In an unlimited company, the shareholders are personally liable for all the company’s debts. •The shareholders (or members) of this type of company have unlimited liability. •This means each member is jointly and severally liable for the debts of the company in the event of its winding-up.
- 16. Companies •Company limited by Guarantee: •Commonly used where companies are formed for non-commercial purposes, such as professional bodies or charities. •The members guarantee the payment of certain fixed, usually small amount towards the company’s debts if the company wound up •otherwise they have no economic rights in relation to the company.
- 17. Companies •Company limited by Shares •It is the most common form of company used for business ventures. •Specifically, a limited company is a company in which the liability of each shareholder is limited to the amount individually invested •Corporations are the most common example of a limited company."
- 18. The Constitution of a Company •All companies must have a written constitution, which consists of two documents: • The memorandum of association, which controls its external relations, • The articles of association, which state how its internal affairs are to be run. • Separate from these documents and not formally part of the company’s constitution, there may also be a shareholders’ agreement.
- 19. The Memorandum of Association •This document covers the following matters: • The name of the company. There are several restrictions on the choice of name for a company. The most obvious one is that the name must not already be in use by another company. • the country in which its registered office will be located • The objects of the company. • A liability clause • The company’s authorized share capital and the number and nominal value of its shares
- 20. The Articles of Association • Many of the issues which must be addressed in the articles of association are very technical. • The articles of association of a company usually need to address at least the • following topics: • The rules to be applied in allotting new shares up to the amount of the authorized but unissued share capital of the company; • The rules governing the transfer of shares • Meetings of members • Appointment and removal of directors • Powers of directors • Dividends and reserves
- 21. Shareholders’ agreements • The articles of association can be changed by resolution at a general meeting by a 75 percent majority. This may make it difficult to protect the interests of minority shareholders. • In order to alleviate possible problems, it is open to the shareholders to conclude an agreement amongst themselves governing the way that the company is run and agreeing to use their voting rights to enforce this. • Such an agreement can only be varied with the consent of all the signatories
- 22. Directors and the Company Secretary • The directors are elected by the shareholders to run the company on their behalf. They have considerable powers and, in a large company with many shareholders, the effective “democratic control” is very weak. However, this is balanced by a series of obligations. • Directors must act in good faith and for the benefit of the company • Directors must exercise the skill and care in carrying out their duties that might be expected from someone of their qualifications and experience.
- 23. Disclosure requirements •In compensation for the benefits of limited liability, the law imposes on limited companies a requirement to disclose information about their operations. •All limited companies must submit an annual return and copies of their accounts to the Registrar of Companies.
- 24. Corporate governance • Limited liability company is governed in a simple and democratic way: • the shareholders meet annually to receive a report from the directors about the state of the company. • If they are unhappy with the way in which things are going, they can elect different directors. •This simple picture is realistic only for companies with a small number of shareholders. •The relationship between the stakeholders in companies and its most senior management is known as corporate governance.
- 25. Organizing an Organization •Functional units of an organization •Production •Quality Management •Sales and Marketing •Finance & Administration •Research & Development
- 26. Centralization vs Decentralization •Centralization and Decentralization are two modes of working in any organization. •In centralization, there is a hierarchy of formal authority for making all the important decision for the organization. •And in decentralization decision making is left for the lower level of organization.
- 27. Centralization vs Decentralization •Advantages of Centralization • The organization can strictly enforce uniformity of procedures and policies. • It can help in the elimination of overlapping or duplicate activities and save costs. • The organization has a better chance of utilizing the potential of its outstanding employees. • It offers a better control over the activities of the organization by ensuring consistency in operations and uniformity in decision-making.
- 28. Centralization vs Decentralization •Advantages of Decentralization • Faster decision-making and better quality of decisions • Improves the effectivity of managers. • Offers a democratic environment where employees can have a say in their governance. • Provides good exposure to mid and lower-level managers and creates a pool of promotable manpower with managerial skills. • Since managers can see the results of their own action moraless, they are more driven and have improved.
- 29. Geographical Organization •In an organization which operates over a large geographical area, there are inevitably some tasks which are best organized on a geographical basis. •If an organization operates in more than one country: • Cultural differences •Even within a single country, the facts of geography may dictate a geographical organization. Geography dictates that the distribution of goods and supervision of the
- 30. Organization by product • Where an organization produces several different types of product or services, it may be desirable to use a top-level structure based on this division. • Thus a motor vehicle manufacturer may be organized on the basis of divisions handling cars, vans and light goods vehicles, another handling heavy goods vehicles, and so on. • In software companies this type of structure is often found to be desirable in order to separate fee-based services from the development and sale of products. • With this sort of organization, each division is likely to be headed by a director; within the division, organization may well be by function. • An alternative is that each division is itself a separate company, with its own board of directors. Such companies are known as subsidiaries.
- 31. The position of quality management • However an organization may be structured, it is important that ultimate responsibility for quality is kept at the centre. • The day-to-day pressures on production and sales create the temptation to skimp on quality procedures in the interests of raising production levels, increasing sales or reducing costs. • The role of the central quality management function is to establish a quality plan which describes the quality procedures to be followed throughout the organization. • The detailed, day-to-day activities required to implement the quality procedures must remain the responsibility of the individual units.
- 32. Motivation •How well individuals carry out their jobs depends on several factors: • How well they understand what is required of them; • Their ability; • The quality of the facilities provided for doing the job; • Their motivation, that is how well they want to do the job; • The attitude of their colleagues.
- 33. Performance appraisal •The importance of giving staff clear objectives and of measuring their performance against these objectives led, in the 1970s, to the development of a style of management known as management by objectives (MBO). •The central idea is that of performance appraisal against agreed targets. Managers are required to agree with each of their subordinates what the subordinate’s objectives in his or her job should be over the next time period, typically six or twelve months
- 34. Performance appraisal • Both manager and subordinate must participate in setting the subordinate’s objectives. • They should agree that the objectives are both feasible and desirable. • They must also identify major obstacles to achieving the objectives. • It is very desirable that the attainment or otherwise of the objectives should be objectively verifiable. • The subordinate’s job must be sufficiently homogeneous to make it probable that the objectives will remain valid throughout the time period. • Continuing commitment from all levels of management is required. • Staff reviews carried out under the scheme should be diagnostic rather than purely evaluative.
Editor's Notes
- #2: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #3: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #4: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #5: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #6: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
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- #8: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #9: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #10: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #11: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #12: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #13: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #14: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #15: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #16: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #17: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #18: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #19: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #20: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #21: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #22: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #23: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #24: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #25: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #26: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #27: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #28: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #29: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #30: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #31: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #32: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #33: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.
- #34: Notes to presenter: Description of what you learned in your own words on one side. Include information about the topic Details about the topic will also be helpful here. Tell the story of your learning experience. Just like a story there should always be a beginning, middle and an end. On the other side, you can add a graphic that provides evidence of what you learned. Feel free to use more than one slide to reflect upon your process. It also helps to add some video of your process.