The first organizations began to arise in antiquity when the first communities and tribes appeared. They consisted of small groups, were very simple in structure and did not have complex goals. Now they have fully entered our lives, and without them there would have been chaos and disorder everywhere. In the article we will consider in detail the concept of organizations, characteristics and types of organizations of different forms of ownership.
Definition
If we talk about the concept and types of organizations, then we can find a lot of different interpretation options. And the simplest of them considers organizations as a collection of people pursuing one common goal. To achieve this, a group must be coordinated by a leader, so any organization must have a managing person or a group of leaders.
Concept and types of social organizations
First of all, it is worth considering that organizations can be qualified on so many grounds. Considering organizations - the concepts, types and functions of these associations - we can divide them primarily into formal and informal.
The latter include those that arise spontaneously, do not have the rights of a legal entity and are not suitable for regulatory acts. This is just a group of people who interact with each other and connected by one goal. These include interest clubs, sports communities, etc.
Formal organizations are a legal entity with their legal acts and moments fixed in the legislation. It can be various firms and companies, as well as foundations, unions, etc. By the way, the mentioned feature is one of the important concepts in the types of organization.
Formal organizations, in turn, are divided into commercial and non-profit. Based on the name of the categories, the former are aimed at making a profit, most often through entrepreneurial activity. And for the second, profit is not the main goal (as a rule, we are talking about sports clubs and various charitable foundations and unions).
Business Classification
In economic theory, one can distinguish many different options for classifications. Almost every company is unique and you can not find exactly the same organization. All companies differ in size, lines of business, form of organization and many other features. But there are basic forms of attributes of organizations, which we list below.
Type of ownership
One of the most important differences is whether the organization belongs to the state or to private individuals. A mixed form is also possible, sharing property rights between private owners and the state or municipal budget. Since the 90s, more and more enterprises passed into private hands, so the most common forms of ownership are private and mixed. State-owned enterprises remain of strategic importance in the defense industry, transport, educational, medical, etc.
Purpose of the enterprise
Regardless of affiliation, organizations perform certain functions. This can be the provision of various services, as in educational or medical institutions, or the production of various products. It is important to note that all the functions of organizations are not limited to these two categories, they are very many and very diverse.
Organization Financing
An important concept in the types of commercial organizations is financing. The fixed capital in them can be formed by foreign, domestic participants or of a mixed type. Now one cannot single out the advantage of any category, because in the Russian Federation all three types of organizations have gained distribution.
After our economy switched to a market type, foreign investors entered the domestic market. At first, our enterprises were highly valued, and the market itself was not very specific, but at the same time, demand was high, which ensured a surge of foreign capital in our organizations. At present, there are many multinational organizations in the country, whose leadership is represented by two or more representatives of different states.
Form of incorporation
The legal form of managing occupies an important place when dividing into types of commercial organizations. The concept of the form of an economic entity and the legal status arising from this legal entity divide them into the following types:
- Business partnerships. These are commercial organizations whose capital is formed by combining parts of the participants' contribution. There are full and partnerships on faith. Responsibility, profit and loss are divided according to the share of a person’s contribution to total capital. The difference between them is that in a partnership in faith, a manager is chosen, whom other members of the organization trust.
- Business companies. The most common type of commercial organization. They are created by legal entities or individuals in order to maximize benefits. Among the main features, one can single out the preservation of the initial status of participants, the pool of capital, equal rights to participate in solving various issues. The most common are open and closed joint-stock companies, concerns, consortia, limited and additional liability companies and various associations.
- Production cooperatives. As with previous types of commercial organizations, the concept of a cooperative also implies a union of individuals to carry out activities. The main difference is the purpose for which this association exists. It can be labor or other activity. In such an organization there are no authorized capitals. All property is formed by units of participants.
- State and municipal institutions. It is not entirely appropriate to include this category in the classification of legal forms due to the fact that theoretically state enterprises can have absolutely any form. The main difference is only that the property or part of it belongs to the state or municipal authorities in the field. Most often, making a profit is not the primary goal of such organizations, but more attention is paid to creating jobs and maintaining domestic production in the regions, as well as controlling production and prices in certain areas of life.
Organizational goals and resources
Most often, the goals of the organization, concepts and types depend on the structure and form of the organization itself. The key goal of any of them, regardless of function, is survival and self-reproduction. If it does not stand out as fundamental, then the organization will soon cease to exist.
To achieve the goal, many organizations are supposed to transform resources into the end result of achieving these goals. The composition of resources can be diverse: here you can include capital, various information knowledge and experience, people and technologies.
Division of labor
In a group of people, everyone will carry out their part of the work, while coordinating their actions with others. This distribution is called the horizontal distribution of labor. It allows you to perform large volumes of work by dividing tasks into specific groups that are interconnected. This allows you to work much more efficiently if everyone worked autonomously.
In order for the organization to achieve common goals, in addition to the division of labor, coordination is used. These two opposing concepts never go separately, because it is always necessary to maintain the interaction of individual units. Most often, in the division of labor, the latter are deduced in the production, marketing, and financial spheres.
The units themselves are also groups of people who are aimed at achieving one goal. That is, we can say that all complex organizations are composed of other organizations, but smaller ones.
Management and vertical division of labor
Very important should be given to the concept of organization management and types of management. Since in the horizontal division of labor, each employee performs part of the process, coordination and, accordingly, management is necessary. And when creating a large number of units, a large number of managers arise, among which the division of labor also occurs.
In any organization, you can distinguish the horizontal and vertical division of labor, these two schemes are applied regardless of the purpose of the organization and its functions.
Organization features
Any organization implies the following:
- A specific goal. It is on the basis of it that the numerical composition of the organization, the initial capital, the development strategy and the composition of the units, each of which is aimed at solving its goals, to achieve a common, are formed.
- Legal status. Any formal company independently defines for itself the concept of organization, type and principles of its activities. She must also have her own status in order to achieve her goals.
- Isolation. Each organization independently determines its type, and in order to achieve goals, it must have its own status.
International organizations
Separately, it is worth highlighting the concept and types of international organizations. These are special associations of governments to achieve common international goals. Most often they are advisory in nature, have their constituent documents, and the decision is made by voting.
Such organizations may be created due to events or act on an ongoing basis. They are divided into organizations with or without government, regional and global. Among the world famous, one can single out the UN, NATO, ASEAN, the CIS and so on.
Organization life cycle
This concept means the time period from the beginning of the existence of the organization to termination, with all changes and processes taking place in this period of time. Any organizations go through this cycle, just some do it longer, some less.
On any life cycle, there are five main stages:
- Occurrence. At this stage, the concept of the organization’s purpose, type, and its future functionality, registered capital and the number of participants are formed. At this stage, the personal qualities of the founders are manifested, since the very image of the future organization is rather vague, therefore, motivation for building the future is important during this period. Control and management is carried out by the creator of the organization, due to the small administrative apparatus.
- Stage of development. It follows after the enterprise has acquired its appearance, and its basic structure and legal basis have been formed. At this stage, there is an active development and expansion of production and the occupation of large volumes in the market. It is characterized by an increase in the number of employees, the introduction of a material incentive system and the introduction of a horizontal and vertical division of labor. The duration of this stage depends only on the ambitions of management and the availability of capital for development.
- Stage of stagnation. The organization is already approaching this stage with accumulated experience, knowledge and an established structure, documents and its mission. It is worth considering that the organization is developing at this stage, just not as intensively as at the previous one. It is considered the longest. It is expanding the range of organizations, as well as its territorial development. It is during this period that the maximum development of the enterprise and the most stable position in society are achieved.
- Stage of decline. Any organization sooner or later begins to decline, in which it loses its position due to new players in the market and does not keep pace with technological progress and fashion. This happens when management adheres to policies that have borne fruit in the past and do not want to introduce anything new. At this stage, a change of leadership and restructuring of the enterprise can occur, only in this case it can go back to the second or third stage. If this does not happen, then the organization goes into the stage of old age, beginning to gradually fade away and lose its position.
- Liquidation. If at the previous stage managers failed to correctly understand the problems and the current stage at which the enterprise is located, then after a certain stage of decline the liquidation process begins. Some organizations resort to a reorganization process when management is transferred to a state body, and financial support is also requested for the recovery process. Remediation contributes to the conclusion of transactions between creditors or debtors, and also acts as a guarantor of fulfillment of obligations.
Conclusion
The concept of organization types is very important, because they surround us wherever we go. Shop, school, hospital, bank and any other places that we visit are various organizations. That is why a lot of attention is paid to the study of the concept of organization, essence and types.