Business Characteristics, Benefits, Ethics, and Structures
Characteristics of Businesses
Businesses consist of a number of people.
The people who belong to them will share some values and views about the purpose of the businesses.
They will have incomes and costs, profits and losses.
They need different types of resources to produce different goods and services.
They need to coordinate a number of different activities done by different individuals.
Benefits of Small Businesses
- Creating employment: more than 90% are employed in SMEs in the western world.
- Their output
Business Communication and Organizational Structure
Formal and Informal Organization
Organizations can be defined by management or arise spontaneously through relationships. These relationships lead to formal and informal organizational types.
Informal Organization
Informal organization refers to the joint social relations that arise spontaneously within a company. It is more difficult to establish than the formal structure.
Communication in Business
Elements of Communication
Communication involves the transfer of information from a sender to a receiver.
Read MoreHR Roles, Responsibilities, and Team Dynamics in Organizations
Organizational Demands on Human Resources
Organizations’ demands on human resources:
- Understand and assume the company strategy (mission, vision, values).
- Define positions within a dynamic organization.
- Recruit adequate staff.
- Facilitate job performance and compromise.
- Recognize good work and correct the bad.
- Facilitate employee engagement.
HR Management Roles
- HR Director (CPO): Strategy
- HR Managers (Specialists): Execution of HR strategy
- HR Business Partner (HRBP): Supports the Director of a Business Area