Ethics also known as moral is determined by the class of philosophy to addresses about morality i.e. concepts such as good vs. bad, right vs. wrong and matters of justice, love, peace and virtue. The term is used to indicate how individuals or organization choose to conduct themselves in relation to universal moral behavior and actions. Ethics involve choosing actions that are right and proper and just. The individual behavior can be right or wrong, proper or improper and the managerial or individual decisions can be fair or unfair. Ethics are vital in businesses and all aspects of living. The foundation of society is built on Ethics. Without ethical principles a business/society is bound to be unsuccessful sooner or later. Business Ethics look at ethical philosophy, moral or ethical problems and deal with issues concerning the moral and ethical rights, duties and corporate authority between a corporation and its shareholders, Continue reading
Business Articles
The Other Side of Entrepreneurship
People who have opposite opinions against entrepreneurship point out ten potential risks. First is management mistake that is the primary cause of business failure. Sometimes the owner of a small business lacks the leadership ability, sound judgment, and knowledge necessary to make the business work. Second is lack of business experience which indicates that most entrepreneurs tend to be beginners to be easy to make management mistakes in their own businesses. Third one is poor financial control. Effective managers realize that any successful business venture requires proper financial control. Business success also requires having a sufficient amount of capital on hand at start-up. Under-capitalization is a common cause of business failure because companies run out of capital before they are able to generate positive cash flow. Entrepreneurs tend to be overly optimistic and often misjudge the financial requirements of going into business. Fourth one is weak marketing efforts that means Continue reading
Challenges faced by Family Businesses
Family businesses in developed countries such as the U.S account for the 50% of the gross domestic product from small business to large corporations. However in the fortunes 500 companies list family businesses account for the 35% which shows that big family corporations rule the world. These family businesses are powerful and at the same time very complex that create both of them advantages and opportunities as well as challenges. The most important challenge is to effectively align the business system with the family system which it cannot come naturally. In the one hand we have the family which is driven by emotions and on the other hand the business that is driven by economics. The interaction of family cohesion and business achievement often creates outstanding business performance but at a cost. If there is lack of coordination, good things that benefit the business can damage the family and when Continue reading
Modern Aspects of Organizational Structure Development
The structure of the organisation can be described as the overall pattern of the relationships between the various roles and responsibilities which allocate to serve the work to sustain the competitive advantage in order to achieve the direct activities and the organisational goals. These structure which resembles the members of the organisation to plan, compromise, organise the various activities to control and uses many principles with the derived classic and as well as the scientific management issues and changes. The overall structure of the organisation which is both architectural and structural which is visible and also invisible which mainly competes with the other entities which mainly defines the various functions and the entities which represent and provides the various useful insights into the underlying design principles in the management section within the organisation. This is a formal structure which not only focuses on the various principles involved in the management Continue reading
Non-Profit Organization: Meaning and Characteristics
The term ‘non-profit organization‘ refers to government organizations, educational institutions, religious bodies, foundations, libraries, clubs, Government hospitals, and welfare organizations. These organizations exit to render service rather than to earn profits. Their success is also measured primarily by how well they render the service. For example, the purpose of a library is to provide books and a place for reading and reference. Its performance can, therefore, be measured by how well it renders the service to its readers. Non-profit organizations aim at providing the best possible service with the given resources and the managerial decisions are taken accordingly. The objectives of a non-profit organization are less precise, more diverse, and sometimes contradictory. Distinctive Characteristics of Non-Profit Organisations The main difference between profit and non-profit organizations lies in the purpose for which they exist. In addition following differences are found in the characteristics of these two types of organizations: Profit Measure. Continue reading
Differences Between Profit and Non Profit Organizations
A profit organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. Profit organization is a business which has a primary goal of making profit and a proposed goal such as helping the environment. An organization is defined by the elements that are part of it its communication, its autonomy, and its rules of action compared to outside events. A non profit organization is a group organized for purposes other than generating profit and in which no part of the organization’s income is distributed to its members, directors, or officers. Non profit corporations are often termed “non-stock corporations.” They can take the form of a corporation, an individual enterprise (for example, individual charitable contributions), unincorporated association, partnership, foundation (distinguished by its endowment by a founder, it takes the form of a trusteeship), or condominium (joint ownership of common Continue reading