Understanding Organizations and Their Economic Impact
Organization
a) is a community with a relatively identifiable boundary.
b) There is a normative order.
c) Ranges of authority.
d) Communication systems.
e) Membership systems are coordinated.
f) The community is relatively constant in the middle and is engaged in activities that are related to an end.
g) It has a distinct purpose (goals).
h) It is made by people.
i) All organizations develop a systematic structure that defines and limits the conduct of their members.
This includes creating rules and standards, the identification of some members as “leaders”, authority, job descriptions, etc.
• Formal Organization: This is an element of administration that aims to bring together and identify the tasks and work to be developed within the company. It is planned that the organization is structured on paper, with:
1. Flowcharts or organizational charts.
2. Organizational manuals.
• Informal Organization: These are networks of alliances and spheres of influence that arise spontaneously from friendships. They are not written and enforced regularly. These groups have a strong influence among the members.
COMPANY
• In economics, a company is the basic economic unit responsible for satisfying market needs through the use of human and material resources. It is responsible for the organization of production factors, capital, and labor.
• It is the practice of a planned economic activity aimed at mediating in the market for goods or services, and is an organized economic unit in which the employer practices their profession either personally or through representatives.
• The goods: These are items that meet human needs and have been obtained by converting other property or natural resources. Product groups include:
1. Consumer goods: These are items employed directly by humans to satisfy a need (shoes, medicines, furniture, etc.).
2. Intermediate goods: These are used to produce other goods and have no direct use in meeting a need.
3. Capital goods: These are items that, once made, will be used to produce other goods or services.
• Services: These are a series of actions or activities to repair, clean, complete, or restore products that have imperfections or shortcomings for use in meeting needs.
• Services do not have a bodily appearance: These actions are not seen with the naked eye, such as machine maintenance services, advice, etc.
Topology and classification of the company:
• We can distinguish the following types of companies based on their business activity or specific objective:
1. Industrialists: These are companies producing goods by processing certain inputs or raw materials into physically different products.
2. Industrial services companies: These are dedicated to providing services related to manufacturing or industrial activity, such as power companies, health facilities, maintenance or repair services, dry cleaners, garages, shoe repair, etc.
3. Commercial companies: These companies buy and sell goods, purchasing items and selling them substantially unchanged.
4. Joint ventures or multiactive companies: These are companies that produce goods and provide services of some kind, such as those that manufacture and sell their products while also selling products made by other companies.
5. Community services firms: These firms perform various services to meet community needs and are not linked to industrial or commercial activity.
Classification according to Economic Activities:
1. The primary sector: This sector creates value by obtaining natural resources (agriculture, livestock, fisheries, mining, etc.).
2. The secondary sector: This sector focuses on physically transforming some goods into others that are more useful. This group includes industrial and construction companies.
3. The tertiary sector: This sector includes various activities such as trade, transport, tourism, consulting, retail, etc.
4. The quaternary sector: This includes all companies in the area of communications and information, particularly in the telecommunications sector.
Topology according to their size:
Companies differ according to aspects such as the number of employees, capital, sales volume, production volume, profits, etc. The following classification is used:
1. Small Business
2. Midsize Businesses
3. Large Companies
Topology by legal and social structure:
This classification is based on the ownership and legal responsibility of the owners.
1. Individual companies: These belong to a single person who is responsible against third parties with all their property, having unlimited liability. They are often small or family-owned.
2. Corporate enterprises or societies: These consist of multiple persons. Within this classification are corporations, general partnerships, limited partnerships, limited liability companies, and social economy entities (cooperatives).