Description
HR Strategic Management (CIPD) 1-please use your own words don’t copy and paste (no plagiarism) 2- Please use keyboard (don’t use handwriting) 3-All answered must be typed using Times New Roman (size 12, double-spaced) 4- I want answer with APA reference, References at least 7 to 9. 5- The Answer should be total of 2500 words for each question 280 words Task – Information Sheet Your manager has asked you to prepare an information sheet about the organization and its environment to support the onboarding of a new member of the People Team. You decide that to be effective in their role, the new team member needs an appreciation of the organization’s activities, goals and how the external environment impacts these. As organizational culture and change are essential to achieving business goals and responding to the external environment you decide to add points about these too. Your information sheet can be based on your own organization or one(s) with which you are familiar, and must include the following: An examination of three key external influences impacting or likely to impact the organization’s activities. (AC 1.1)A discussion of at least two of the organization’s business goals and why it is important for organizations to plan for how they will achieve these. (AC 1.2)A discussion of the organization’s products and/or services and main customers. (AC 1.3)A short review of information and communication technologies available to people professionals and how these can be, or are, used to improve working practices and collaboration.(AC 1.4)A definition of what is meant by organizational culture and an explanation of why it is important to foster an appropriate and effective workplace culture. (AC 2.1)An explanation of how organizations are whole systems, within which aspects such as structure, systems and culture, are all inter-related, and how people professionals’ work and actions could impact elsewhere in the organization. (AC 2.2)An explanation of why it is important that organizational change is planned, and effectively managed. (AC 3.1)An explanation of the importance and role that can be played by people professionals within change. You might consider roles such as: gatekeeper, champion, facilitator, critical friend or record-keeper. (AC 3.2)A discussion of how organizational change can impact people in different ways, such as changing their role or status or financial situation. (AC 3.3) The evidence must consist of: An information sheet of approximately 2500 words. Please make it clear in your evidence which question and AC you are addressing, for example, Q1 – AC1.1.
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Assignment
HR Strategic Management (CIPD)
1-please use your own words don’t copy and paste (no plagiarism)
2- Please use keyboard (don’t use handwriting)
3-All answered must be typed using Times New Roman (size 12, doublespaced)
4- I want answer with APA reference, References at least 7 to 9.
5- The Answer should be total of 2500 words for each question 280 words
Task – Information Sheet
–
Your manager has asked you to prepare an information sheet about the organization
and its environment to support the onboarding of a new member of the People Team.
You decide that to be effective in their role, the new team member needs an
appreciation of the organization’s activities, goals and how the external environment
impacts these. As organizational culture and change are essential to achieving business
goals and responding to the external environment you decide to add points about these
too.
–
Your information sheet can be based on your own organization or one(s) with which you
are familiar, and must include the following:
●
An examination of three key external influences impacting or likely to impact the
organization’s activities. (AC 1.1)
A discussion of at least two of the organization’s business goals and why it is important
for organizations to plan for how they will achieve these. (AC 1.2)
A discussion of the organization’s products and/or services and main customers. (AC
1.3)
A short review of information and communication technologies available to people
professionals and how these can be, or are, used to improve working practices and
collaboration. (AC 1.4)
A definition of what is meant by organizational culture and an explanation of why it is
important to foster an appropriate and effective workplace culture. (AC 2.1)
An explanation of how organizations are whole systems, within which aspects such as
structure, systems and culture, are all inter-related, and how people professionals’ work
and actions could impact elsewhere in the organization. (AC 2.2)
An explanation of why it is important that organizational change is planned, and
effectively managed. (AC 3.1)
●
●
●
●
●
●
●
●
An explanation of the importance and role that can be played by people professionals
within change. You might consider roles such as: gatekeeper, champion, facilitator,
critical friend or record-keeper. (AC 3.2)
A discussion of how organizational change can impact people in different ways, such as
changing their role or status or financial situation. (AC 3.3)
The evidence must consist of:
▪
An information sheet of approximately 2500 words.
Please make it clear in your evidence which question and AC you are addressing,
for example, Q1 – AC1.1.
Learner declaration:
● I confirm that the work/evidence presented for assessment is my own unaided work.
● I have read the assessment regulations and understand that if I am found to have ‘copied’
from published work without acknowledgement, or from other candidate’s work, this may
be regarded as plagiarism which is an offence against the assessment regulations and
leads to failure in the relevant unit and formal disciplinary action.
● I agree to this work being subjected to scrutiny by textual analysis software if required.
● I understand that my work may be used for future academic/quality assurance purposes in
accordance with the provisions of Data Protection legislation.
● I understand that the work/evidence submitted for assessment may not be returned to me
and that I have retained a copy for my records.
● I understand that until such time as the assessment grade has been ratified through
internal and external quality assurance processes it is not final.
This work considered as an assignment for CIPD level 3. We are supposed to elaborate with
specific examples of any company or organization and its subdivisions. The total number of
words required for this assignment should 2500 word for 9 questions; meaning that each
question should contain 280 words (more/less). For example: working in healthcare
organization, more specifically its Human Resources Department which includes more than five
divisions: Training, Manpower, Recruitment, Payroll, Government Relations, and badging. We,
however can focus on any of those divisions and the external factors that might affect the
activity of the organization and is that possible, giving examples is preferable with references
from books, articles, or journals (google scholar is a good reference)
Examine the key external influences that impact on business environments.
External forces that impact on the organization’s current and future activities. For example, the
findings of STEEPLE, SWOT analysis to inform understanding of the market(s) in which the
organization operates.
1.2 Discuss organizational goals and why it is important for organizations to plan.
The organization’s long- and short-term vision and goals, type of business, structure,
documentation, employment climate. How the organization informs and determines its objectives
and planning and how these link to policy and people practices. Why planning is necessary for
business continuity.
1.3 Discuss the products and/or services the organization delivers, including who the main
customers are.
Identification of the products and services that the organization offers; the market within which it
operates and the customers it serves; customer needs analysis; difference between features and
benefits; types of business/market, for example, agency, direct, wholesale, online; market
segmentation
1.4 Review the range of technology available within the people profession, including how it can
be utilized to improve working practices and collaboration.
Different types of technologies, for example wi-fi, internet, email, electronic forms of
communication, for example smart phones, social media, cloud-based
1.1
EXAMINE THE KEY EXTERNAL INFLUENCES THAT IMPACT ON BUSINESS
ENVIRONMENTS
PESTEL ANALYSIS: A PESTEL analysis or PESTLE analysis (formerly known as PEST
analysis) is a framework or tool used to analyze and monitor the macro-environmental
factors that may have a profound impact on an organization’s performance. This tool is
especially useful when starting a new business or entering a foreign market.
PESTEL is an acronym that stand for Political, Economic, Social, Technological,
Environmental and Legal factors. However, throughout the years people have expanded the
framework with factors such as Demographics, Intercultural, Ethical and Ecological
resulting in variants such as STEEPLED, DESTEP and SLEPIT.
This unit considers the impact of external influences and how the digital and commercial
environment shapes businesses and the culture within which they operate. It considers the
importance of people’s behavior on organizational culture and its ability to manage change
effectively.
You will develop an understanding of the key external influences that impact on businesses and the
context within which they operate, including discussing how and why organizations set goals. You will
define workplace culture and how people’s behavior shapes it. You will explain how organizations are
whole systems and how your actions affect others. You will also discuss how people learn, adapt and
develop in different ways. The concept of change is a key focus of this unit and you will explain how
people professionals impact people in different ways and the importance of how focused project planning
directs change in manageable way
Business, Culture and Change
in Context
Learning Outcome 01
SIMPLY CONSULT SERVICES
3CO01
Business, culture and
change in context
About this unit
This unit considers the impact of external influences and how
the digital and commercial environment shapes businesses and
the culture within which they operate. It considers the
importance of people’s behaviour on organisational culture and
its ability to manage change effectively.
What you will learn
You will develop an understanding of the key external influences
that impact on businesses and the context within which they
operate, including discussing how and why organisations set
goals. You will define workplace culture and how people’s
behaviour shapes it. You will explain how organisations are
whole systems and how your actions affect others. You will also
discuss how people learn, adapt and develop in different ways.
The concept of change is a key focus of this unit and you will
explain how people professionals impact people in different
ways and the importance of how focused project planning
directs change in manageable ways.
5 credits
Level 3
CIPD Foundation Certificate in People Practice
50 hours total unit time
25 guided learning hours
platforms, dashboards, file management
and document sharing, cloud-hosting,
synchronous collaborative software,
Bluetooth, voice recognition, fingerprint,
facial and iris recognition, autoresponders, artificial intelligence. How
collective and individual technologies
can change, improve and affect working
practices. Various social and
technological approaches used in
communication, customer service,
marketing, improving efficiency,
productivity and security.
Learning outcome, assessment criteria and
indicative content
1 Understand the business
environment in which the people
profession operates, including the
key issues that affect it.
1.1 Examine the key external influences that
impact on business environments.
External forces that impact on the
organisation’s current and future activities.
For example, the findings of STEEPLE,
SWOT analysis to inform understanding of
the market(s) in which the organisation
operates.
1.2 Discuss organisational goals and why it is
important for organisations to plan.
The organisation’s long- and short-term
vision and goals, type of business, structure,
documentation, employment climate. How
the organisation informs and determines its
objectives and planning and how these link
to policy and people practices. Why planning
is necessary for business continuity.
1.3 Discuss the products and/or services
the organisation delivers, including who
the main customers are.
Identification of the products and services
that the organisation offers; the market
within which it operates and the customers it
serves; customer needs analysis; difference
between features and benefits; types of
business/market, for example, agency,
direct, wholesale, online; market
segmentation.
1.4 Review the range of technology available
within the people profession, including
how it can be utilised to improve working
practices and collaboration.
Different types of technologies, for
example wi-fi, internet, email, electronic
forms of communication, for example smart
phones, social media, cloud-based
2
Understand how people’s
behaviour in the workplace
affects and shapes culture.
2.1 Define workplace culture in
organisational settings and the
importance of fostering positive
approaches towards it.
What culture is, definitions and types of
culture in the organisational context,
sub- cultures, cultural diversity, impact
of culture, values and norms, positive
and negative cultures. The organisation
as a holistic system, the roles of people
professionals in facilitating an
appropriate and effective organisational
culture. What is meant by creating a
diverse and inclusive environment.
How diversity and inclusion principles
are built into organisational practices.
2.2 Explain how organisations are whole
systems, and how work and actions
as a people professional could
impact elsewhere.
Organisational types, structures,
designs and systems. Organisations as
organic living systems, the importance
of value- driven organisations.
Approaches taken to achieve an
effective holistic systems approach.
Areas of impact, such as influence on
the government or sector, innovative
development on working practices
regionally, nationally and internationally,
changes to laws and
guidelines, influence on professional
institutes and their approaches, influential
published case studies, advice and
guidance, approaches and styles of L&D
sector, assessment and management of
apprentices and standards, health, safety
and welfare exemplars, support or
mentoring of smaller businesses.
2.3 Discuss how people learn and develop in
different ways, relating this to
organisational assessments of people’s
skills and capabilities.
Human capital, learning and
competitiveness: strategic importance of
workplace learning, factors and theories of
learning, transfer of learning to achieve
competitiveness and high performance.
Assimilation of new ways of thinking and
doing. Capturing and interpreting learning
trends in the organisation – skills gaps,
critical incidents, underperformance.
3
Understand the importance of effective
management of change.
3.1 Explain the importance of planning and
managing change within the workplace.
Factors and triggers for change to include
competition, technological, turbulence,
discontinuity, chaos, process and
implementing change. How changing
situations and initiatives can impact on the
organisation’s business. Project planning:
the role, purpose and goals of project
planning.
3.2 Consider the importance and role that
people professionals play within
change.
People professionals’ role in facilitating
change agendas, such as gatekeeper,
SMT liaison or representative, driver of
change, facilitator, expert witness,
consultant, adviser, side-line witness and
non-participant, critical friend, guardian of
legality and compliance, disseminator
and communicator, record-keeper.
3.3 Discuss how change can impact
people in different ways.
Different behavioural responses to
change, personal, professional,
behavioural. Job loss, downgrade,
upgrade, regrade, financial, face loss,
career aspirations, illness, mental health,
physical health, welfare, family changes,
self-esteem, social, motivational,
group/team formation, dynamics and
relationships, customer perceptions and
relationships, competitor perceptions
and relationships.
Books
Armstrong, M. and Taylor, S.
(2020) Armstrong’s handbook of
human resource management practice.
15th ed. London: Kogan Page.
Beevers, K., Rea, A. and Hayden, D.
(2019) Learning and development
practice in the workplace. 4th ed. London:
CIPD Kogan Page.
Burnes, B. (2017) Managing
change. 7th ed. Harlow:
Pearson Education.
Leatherbarrow, C. and Fletcher,
J. (2018) Introduction to human
resource management: a guide to HR in
practice. 4th ed. London: CIPD
Kogan Page.
Martin, M. and Whiting, F. (2016)
Human resource practice. 7th ed.
London: CIPD Kogan Page.
[Forthcoming, 8th ed., summer 2020.]
Smith, R., King, D., Sidhu, R. and Skelsky,
D. (eds). (2014) The effective change
manager’s handbook: essential
guidance to the change management
body of knowledge. London: Kogan
Page.
Key journals
People Management
Available at:
www.peoplemanagement.co.uk
/
Personnel Today
Available at: www.personneltoday.com/
Online resources
Davies, G. (2019) Understanding
the economy and the labour market.
Factsheet. London: Chartered Institute of
Personnel and Development. Available at:
www.cipd.co.uk/knowledge/work/trends/e
c onomy-labour-market-factsheet
George, S. (2019) Change management.
Factsheet. London: Chartered Institute of
Personnel and Development. Available at:
www.cipd.co.uk/knowledge/work/trends/ec
onomy-labour-market-factsheet
Green, M. and Russell, T. (2019) Ethical
practice and the role of HR. Factsheet.
London: Chartered Institute of Personnel
and Development. Available at:
www.cipd.co.uk/knowledge/culture/ethics/r
ole-hr-factsheet
Hayden, D. (2019) Identifying learning and
development needs. Factsheet. London:
Chartered Institute of Personnel and
Development. Available at:
www.cipd.co.uk/knowledge/fundamentals/
people/development/learning-needsfactsheet
Hayden, D. (2018) Learning in
the workplace. Factsheet. London:
Chartered Institute of Personnel and
Development. Available at:
www.cipd.co.uk/knowledge/strategy/develo
pment/learning-factsheet
Hayden, D. (2019) Learning methods.
Factsheet. London: Chartered Institute of
Personnel and Development. Available at:
www.cipd.co.uk/knowledge/fundamentals/
people/development/learning-methodsfactsheet
Houghton, E. (2019) Strategic human
resource management. Factsheet.
London: Chartered Institute of Personnel
and Development. Available at:
www.cipd.co.uk/knowledge/strategy/hr/stra
tegic-hrm-factsheet
Weeks, A. (2018) PESTLE analysis.
Factsheet. London: Chartered Institute of
Personnel and Development. Available at:
www.cipd.co.uk/knowledge/strategy/organi
sational-development/pestle-analysisfactsheet
1 Understand the business environment in which the people profession
operates, including the key issues that affect it
1.1
EXAMINE THE KEY EXTERNAL INFLUENCES THAT IMPACT ON BUSINESS
ENVIRONMENTS
PESTEL ANALYSIS: A PESTEL analysis or PESTLE analysis (formerly known as PEST
analysis) is a framework or tool used to analyse and monitor the macro-environmental
factors that may have a profound impact on an organisation’s performance. This tool is
especially useful when starting a new business or entering a foreign market.
PESTEL is an acronym that stand for Political, Economic, Social, Technological,
Environmental and Legal factors. However, throughout the years people have expanded the
framework with factors such as Demographics, Intercultural, Ethical and Ecological
resulting in variants such as STEEPLED, DESTEP and SLEPIT.
Political Factors:
These factors are all about how and to what degree a government intervenes in the
economy or a certain industry. Basically all the influences that a government has on your
business could be classified here. This can include government policy, political stability or
instability, corruption, foreign trade policy, tax policy, labour law, environmental law and
trade restrictions. Furthermore, the government may have a profound impact on a nation’s
education system, infrastructure and health regulations.
Economic Factors:
Economic factors are determinants of a certain economy’s performance. Factors include
economic growth, exchange rates, inflation rates, interest rates, disposable income of
consumers and unemployment rates. These factors may have a direct or indirect long
term impact on a company, since it affects the purchasing power of consumers and could
possibly change demand/supply models in the economy. Consequently it also affects the
way companies price their products and services.
Social Factors:
This dimension of the general environment represents the demographic characteristics,
norms, customs and values of the population within which the organization operates. This
inlcudes population trends such as the population growth rate, age distribution, income
distribution, career attitudes, safety emphasis, health consciousness, lifestyle attitudes
and cultural barriers. These factors are especially important for marketers when targeting
certain customers.
Technological Factors:
These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably. This refers to technology incentives,
the level of innovation, automation, research and development (R&D) activity,
technological change and the amount of technological awareness that a market possesses.
These factors may influence decisions to enter or not enter certain industries, to launch
or not launch certain products or to outsource production activities abroad. By knowing
what is going on technology-wise, you may be able to prevent your company from
spending a lot of money on developing a technology that would become obsolete very
soon due to disruptive technological changes elsewhere.
Environmental Factors:
Environmental factors have come to the forefront only relatively recently. They have
become important due to the increasing scarcity of raw materials, pollution targets and
carbon footprint targets set by governments. These factors include ecological and
environmental aspects such as weather, climate, environmental offsets and climate
change which may especially affect industries such as tourism, farming, agriculture and
insurance.
Legal Factors:
Although these factors may have some overlap with the political factors, they include more
specific laws such as discrimination laws, antitrust laws, employment laws, consumer
protection laws, copyright and patent laws, and health and safety laws. It is clear that
companies need to know what is and what is not legal in order to trade successfully and
ethically. If an organisation trades globally this becomes especially tricky since each
country has its own set of rules and regulations.
SWOT ANALYSIS
SWOT Analysis (also known as SWOT Matrix) is a business framework that helps
assessing a wide variety of factors that may have a profound impact on a business’s
performance. These factors may either be internal to a company or external. Furthermore,
these factors may either be favourable/helpful or unfavourable/harmful to a company.
By combining these two dimensions one can draw a 2×2-matrix consisting of four
quadrants: Strengths, Weaknesses, Opportunities and Threats.
SWOT Analysis
Strengths (SWOT Analysis)
A company’s strengths are its charactersitics that give it an advantage over others
(competitors). Sometimes these strengths are also referred to as unique selling points
(USPs), firm-specific advantages (FSAs) or competitive advantage. The source of these
strengths are resources and capabilities that are valuable, rare, hard-to-imitate and
organization-wide supported. The VRIO framework is a useful tool to evaluate a
company’s resources. Examples of valuable company resources are patents, a strong
brand reputation, a new innovative product, a talented workforce, historically developed
know-how and large financial reserves.
Weaknesses (SWOT Analysis)
Similarly, these tools are very helpful in assessing a company’s weaknesses. These
weaknesses are company characteristics that place a company at a disadvantage relative
to others. In other words: they are harmful to a company. Weaknesses could for example
be a lack of patent protection, poor reputation among customers, a small working capital,
bad leadership and an inefficient production process.
Opportunities (SWOT Analysis)
Opportunities are the external factors of the SWOT analysis that may affect a company’s
performance positively. To assess the opportunities, a company should look for elements
in the environment that could be exploited to its own advantage. The best way to assess
the external factors is by using PESTEL analysis for the macro-environment and Porter’s
Five Forces for the industry dynamics.
External Factors of SWOT Analysis (PESTEL and Porter’s Five Forces)
Threats (SWOT Analysis)
The threats on the other hand are the external factors that could cause trouble for the
company in the future. Similar to the opportunities, one could use a PESTEL analysis
and a Porter’s Five Forces model to assess the elements in the environment that could
harm the organization. Examples of harmful macro-environmental developments could
be an increasing unemployment rate, disruptive technologies, protests from NGO’s and
increasing government corruption levels. In terms of industry specific threats, one could
think about new competitors entering the arena, the availability of substitute products and
increasing bargaining power from suppliers. Together, the opportunities and threats make
up the external part of the SWOT analysis.
TOWS Matrix
A SWOT analysis helps assessing a company’s current internal and external situation, but does
not provide concrete strategic actions to take. One way to map out the strategic options a
company has is by using the so-called TOWS matrix (or TOWS analysis). By combining
the external environment’s opportunities and threats with the internal organization’s strengths
and weaknesses, management can come up with four basic strategies to follow based on the
situation it is in:
Figure 3: TOWS Matrix
WT situation: Mini-Mini strategy
The company in this case has little development opportunities. It operates in a hostile environment
and its potential for change is small. It does not have significant strengths, which could
withstand threats. The aim of the Mini-Mini strategy is to minimize both weaknesses and
threats. Mini-Mini strategy boils down to a pessimistic scenario such as the liquidation of a
company or in an optimistic situation – to strive for survival by merging with another
organization.
WO situation: Mini-Maxi strategy
In this situation the company has more vulnerabilities (weaknesses), but its environment provides
plenty of opportunities to resolve that. The Mini-Maxi strategy attempts to minimize the
weaknesses and to maximize the opportunities. The strategy should include the exploitation of
these opportunities while reducing or correcting weaknesses within the organization.
Outsourcing activities or acquiring another company with the right resources could be an option
for example.
ST situation: Maxi-Mini strategy:
In this case we see a strong company operating in a hostile environment. The aim of a Maxi-Mini
strategy is to maximize the strengths of a company while minimizing the threats through these
strengths. A company with strong financial capabilities and cost-reducing skills, could lower
its prices to drive out competition.
SO situation: Maxi-Maxi strategy:
Any company would like to be in a position where it can maximize both strengths and
opportunities. Such an enterprise can lead from strengths, utilizing its resources to take
advantage of the opportunities the market is offering. Companies in these situations could think
about expanding internationally or diversifying their product portfolio to boost revenues. For
these growth opportunities you might want to look at the well-known business growth
framework: the Ansoff Matrix.
SWOT Analysis converted into TOWS (SO, ST, WO and WT Strategies)
SWOT Analysis In Sum
A key advantage of SWOT analysis is the fact that it combines different research streams and
perspectives
(e.g. Resource
Based
View
(RBV) and Industrial
Organization
(I/O) perspectives). Frameworks such as Porter’s Five Forces were criticized that they focused
too much on the external environment to determine a company’s profit potential, whereas the
VRIO framework relied too much on internal resources and capabilities as a source for
competitive advantage. In reality both internal and external factors will have to be taken
into account of course to improve a company’s chances for success. A SWOT analysis
combined with a TOWS analysis offers a good starting point to assess the current situation and
to evaluate potential next steps.
1.2 DISCUSS ORGANISATIONAL GOALS AND WHY IT IS IMPORTANT FOR
ORGANISATIONS TO PLAN
The organisation’s long- and short-term vision and goals
Create a business vision
A vision is a vivid mental image of what you want your business to be at some point in the future,
based on your goals and aspirations. Having a vision will give your business a clear focus, and
can stop you heading in the wrong direction.
A vision statement captures, in writing, the essence of where you want to take your business, and
can inspire you and your staff to reach your goals.
What to include in a vision statement?
A vision statement should communicate your long-term business goals, and it should reflect your
view of the world and your business’s place in it.
It should also answer the fundamental question, ‘Where are we going?’ The practical aspect of
‘How will we get there?’ is usually dealt with in a mission statement or a business plan.
Your vision statement might be inspired by certain aspects of your business, such as:
●
finances (e.g. to sustain and support your family)
●
reputation (e.g. among customers, staff, competitors)
●
service quality standards (e.g. to make customers a priority)
●
growth (e.g. you offer new products, innovate, get more customers, increase locations)
●
passion (e.g. that you and your staff enjoy what you do)
●
sustainability (e.g. that you are financially and environmentally sustainable).
You should also think about what inspired you to start a business, and what business values and
principles are important to you.
Example vision statements
Large companies often have a grand vision statement that aspires to global goals. But even a small
business can benefit from having a relatively grand vision statement. Below are some examples
of vision statements from global companies, as well as small businesses with local goals:
●
‘There will be a personal computer on every desk running Microsoft software.’
(Microsoft’s original vision statement)
●
‘Our vision is to be earth’s most customer centric company; to build a place where
people can come to find and discover anything they might want to buy online.’
(Amazon.com)
●
‘To build a community of coffee lovers in Brisbane, by serving the best coffee at the
best possible prices.’ (local café)
●
‘Our salon will change the way you think about a haircut, and leave you glowing both
inside and out.’ (local hairdresser)
TYPE OF BUSINESS
Forms of Business Organization
These are the basic forms of business ownership:
1. Sole Proprietorship
A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least
costly among all forms of ownership. The owner faces unlimited liability; meaning, the
creditors of the business may go after the personal assets of the owner if the business cannot
pay them.
The sole proprietorship form is usually adopted by small business entities.
2. Partnership
A partnership is a business owned by two or more persons who contribute resources into the entity.
The partners divide the profits of the business among themselves.
In general partnerships, all partners have unlimited liability. In limited partnerships, creditors
cannot go after the personal assets of the limited partners.
3. Corporation
A corporation is a business organization that has a separate legal personality from its owners.
Ownership in a stock corporation is represented by shares of stock.
The owners (stockholders) enjoy limited liability but have limited involvement in the company’s
operations. The board of directors, an elected group from the stockholders, controls the
activities of the corporation.
In addition to those basic forms of business ownership, these are some other types of organizations
that are common today:
Limited Liability Company
Limited liability companies (LLCs) in the USA, are hybrid forms of business that have
characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it
is not considered a corporation. But, the owners enjoy limited liability like in a corporation. An
LLC may elect to be taxed as a sole proprietorship, a partnership, or a corporation.
Cooperative
A cooperative is a business organization owned by a group of individuals and is operated for their
mutual benefit. The persons making up the group are called members. Cooperatives may be
incorporated or unincorporated.
Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative
banking, credit unions, and housing cooperatives.
ORGANISATIONAL DOCUMENTATION
Organizational Documentation is the practical and formal reflection of the organizational
structure. Described in the documentation are relationships between system and elements,
which constitute the formal organizational structure of the company.
For
the
proper
functioning
of
any organization it
is
necessary
to
develop
the documentation containing the overall description of the system. Documentation should
facilitate
the work of
the
personnel,
efficient management of the company.
as
well
as
assist
the
leadership
in
the
Types of Documents
13 types of organizational documents
Formal documents describing the organization and functioning of the organization, can be
categorized according to criteria such as:
●
The rationale underlying the development and implementation of a document
o
The documents resulting from the formal-legal considerations,
o
The documents resulting from the reporting rules concerning the organizational
structure and the functioning of processes.
●
The time in which the document is valid
o
The perpetual,
o
In force by a specific time
o
The documents relating to a specific problem (after solving the problem the document
is no longer valid).
●
Subject of regulation
o
The documents authorizing the fact of the existence of the organization,
o
Closely defining the Organization,
o
Defining tasks
o
Defining the tools and performance of the tasks,
o
Mixed documents.
The documents needed for overall effectiveness of organizati
