Characteristics of an ideal form of organisations
Characteristics of an ideal form of organisations: In this article we are going to explain clearly about the characteristics of an ideal form of organisations please do ready the article clearly and comment section below.
In a business the production and distribution are carried out by lacks of establishment at work. The organised business units are differ in form ownership. A business unit can be owned and organised in the several forms. Each form has its own advantages and disadvantages. Every businessman is facing a problem in selecting a suitable form of ownership in business. Choosing a business is a very crucial decision because, in a business it determines the power, control, capital, risk and responsibilities of entrepreneurs. If a form of ownership is chosen it is difficult to change it. After a considerable thought we should select a form of ownership.
Features of an ideal form of organisations
The following are good characteristic features of an ideal form of organisations.
Ease of formation
An ideal form of ownership is ease to form. Ease formation implies absent of formalities and least expense in formation. It should be ease to select the proper business partnership to company form.
Enough capital should be available at the initial stage. The condition necessary to attract capital from the public is safety of investment. Confirm return of investment and transferable investment. There should be facility of rising required funds in future.
The firm is able to be organised either on the principle of limited liability or unlimited liability. In every business there is risks and uncertainties. From the point of view of risk is better to have limited liability. Only thing that keeps liability limited is prospect of profits.
Transferable of interest
The risks and liability is reduced only when the investment is transferable. A good form of ownership enables the owner to transfer his investment with out taking any risk or contest of other owners.
An ideal form of organisations enable maximum possible efficiency management. And also control of the firm. A business permits division of labour and specialisation of labour effort. The effectiveness of a Organisation mainly depends upon three factors that are motivation, flexibility, skill. Motivating the labour or management is highest ownership and also management go hand in hand.
Continuity or stability
A successful businessman should enjoy his undisturbed stability of his business through a long period of time. Only when a business has stable firm provides continuous employment to the workers and also sufficient returns or income to the owners. Public is also interested in the continuity of the business and also technology changes and public revenue. Stability company form of organisation is the ideal form of organisation.
Flexibility of operations
Flexibility and adaptability to changing the ideal of a good form of organisations. In a business changes may occur either in the conditions of supply of production, or also in market conditions. Sometimes even government may be change policy and rule towards the industry or may be change in the management policies. It is easy to change in the firm from time to time. The scoper sole proprietorship is the most ideal form of organisation.
Minimum government control
Different from organisation are varying to the rules and regulations of the government. Expense of time and money happens because of to many regulations. An ideal form of organisations is free from strict rules and regulations.
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