 Hello dear learners. Welcome to today's program. I am Mampidas, Assistant Professor from the Discipline of Commerce of Krishnakanta Handic State Open University. This program is for Bikonfa semester, course, business organization and business ethics. You need to title business organization. A business is like an organized entity that coordinates the activity of a business enterprise to both maximize profits and fulfill social responsibilities. It can be seen as both an art and a science. As an art, it involves the practical application of skills and strategies in the real business world. Simultaneously, when arranged as a science, it becomes a bunch of knowledge, requiring a systematic study of principles and techniques to understand how different business activities are organized. Essentially, a business operates as a dynamic blend of practical expertise and systematic knowledge aimed at achieving success and societal well-being. The organization of a business house is divided into two broad classes, internal organization and external organization. Now, let us talk about the scope of business organization. Business involves everything that a businessman does. It includes trade, commerce and industry. Business scope refers to the area in which a company operates and its specific products or services. Thus, scope of a business is very large and covers various activities which we will be discussing now. First activity is the manufacturing activity. It is concerned with converting raw materials into final goods or finished goods. Next is buying activity. It is a crucial function in all kind of business, whether it is for trading or manufacturing purposes. Purchase department within a business is basically dealing with those tasks. This department is responsible for acquiring the necessary goods and materials, ensuring a smooth flow of resources for the business trading or manufacturing needs. Next is the sailing activity. Sailing involves transfer of ownership of the commodity from the sailor to the buyer. The object of earning profit is realized through successful sailing only. Sales department looks after the sailing activities of a business. Next, the financial activities. Now, finance it is the lifeblood of any organization and every organization. Managing finance involves figuring out how much capital the business needs, ensuring there enough funding and overseeing the control and administration of the funds used in various operations. In simpler terms, it is about making sure the organization has the right amount of money to run smoothly and efficiently. Next is the personal activity. Now, in an organization, it is true that the people who make up the institution plays an important role. Effectively, managing these individuals is very important to achieve business goals. Personal activities involves tasks like selecting, training employees, ensuring good working conditions, analyzing jobs, etc. etc. The personnel department takes charge of handling those activities. Next is the office activity. An office is like the central hub for any business, making sure that everything runs smoothly. The office also takes care of communicating with the company and keeping assets safe and well-documented. Next is the accounting activity. In any business, there is a crucial part called the accounting department. The team members of this department is responsible for keeping track of all the transactions that happen in the business. Essentially, it's like the financial watchdog, making sure the company works exactly where it stands in terms of money matters. Now, let us discuss about the internal organization of a business. Now, internal organization, it refers to how a company arranges the roles and responsibilities of its employees to carry out different tasks efficiently. Essentially, it is like a blueprint that guides employees in their functions and helps the company's management in achieving their objectives. It's about setting up a framework that ensures smooth operations within the company to reach its overall objective. In business, activities are grouped into different functions or departments, each assigned with various individuals and various tasks. The collaboration of individual efforts is very much important to reach one common business goal. Management plays a very important role in aligning these activities to achieve a predetermined objective. The effectiveness of a business internal organization mostly relies on three main factors. First, the appropriate division of work into departments. Second, the smooth functioning of each department. And third, the smooth continuous coordination among all the departments. Essentially, a well-organized business structure depends on dividing tasks efficiently, ensuring each department functions effectively and fostering strong coordination between departments or various departments of the business to achieve collective success. Now, next, let us talk about departmentation. Departmentation, it involves organizing and categorizing business activities into different units or departments within a company, each department focusing on specific related tasks. The number of departments depends on a company's size and nature. Larger the business, more departments will be there. The benefits of departmentation includes improved efficiency as activities are grouped into manageable units, making accountability clear and easy to establish. Overall, it provides a structured approach to managing business functions, enhancing organization and performance. The various departments available are functional departmentation, product-wise departmentation, territorial or geographical departmentation, customer-wise departmentation, process or equipment-wise departmentation, combine or composite form of departmentation. Now, let us understand it deeply. Functional departmentation, it involves grouping activities based on various functions like production, sales, finance, etc. The product-wise departmentation are grouped based on product types, popularities and price. If we talk of territorial or geographical departmentation, it is about the activities that are spread across different locations. Then customer-wise departmentation, it divides a business based on the types of customers it serves. And process-wise departmentation is suitable for enterprises with various production processes. Now, there is another one, departmentation type that is combination or composite departmentation. Sometimes, a combination of various methods or the various departments known as combined or composite departmentation is also used to make the best use of all the approaches. Now, let us see the various forms of internal organization. An organization arranges and aligns the endeavours of individuals and groups within a business enterprise, describing specific duties and responsibilities for each person. Through a judicious delegation of powers, optimal performance is ensured. Several vital forms of internal organization are being included. They are, first is online organization or line organization. Line organization, the structure establishes hierarchical relationship between superiors and subordinates, adhering to the scalar principle. Next is the staff organization, which assembles a cadre of advisors within the organization. Specialists are called upon to provide counsel to line managers. Next is functional organization. This structure operates on the principle of dividing lever efficiently. Specialized experts oversee various functions and related tasks are alerted to different departments. Next is the line and staff organization. This organization model combines elements of both line and staff structure. Another is the project organization and within this framework, a project manager, overseas or team of specialists, experts from diverse fields are assigned to the project to manage or execute various activities. Next is committee organization. This form of organization centers around group management, utilizing committees at various levels to enhance internal coordination. Last is the task forces. Task forces are assembled to address specific assignments. Members are temporarily re-assigned from their regular position to concentrate on a particular project here. Now let us talk about external organization. External organization, it refers to the legal and ownership structure in business, which can be categorized into private enterprise, cooperative enterprise and public sector enterprise. The evaluation of these firms is closely linked to the growth of trade and industry, adapting to the changing needs of business over time. In the early stages of business sole proprietorship was the only firm available, particularly suitable for small-scale activities. As the need for more fund arose, the partnership form of organization emerged, allowing multiple individuals to start a business together. The industrial revolution assured in increased economic activities, leading to development of large-scale enterprise. To accommodate the demands of this growth, the joint stock company form of organization evolved. Private enterprise, with a primary emphasis on profit maximization, often tend to overlook the interest of consumers. In contrast, cooperative enterprises, such as cooperative societies, focused on serving their members rather than maximizing their profit. These enterprises aims to provide economic benefit to members through affordable goods, with any profit earned reinvested for their economic betterment. Recognizing the role of state as an entrepreneur, public sector enterprises have also emerged, particularly in industries of national importance or areas where private entrepreneurs are hesitant to enter. Now, let us understand certain factors, which influence in choosing or selecting a suitable form of business organization from the various available forms of organization. Selecting the right organizational structure is very important decision for any entrepreneur, as it dictates ownership, responsibilities and future directions. Once chosen, changing the form of organization is very challenging and can significantly impact the enterprise future. So, it is better to take decisions with proper planning beforehand. Making a well-considered choice is very important, as it profoundly shapes the unit's future. Some important factors should be considered, which influence the choice of a suitable form of organization, which will be discussed now. First is the requirement of capital. The choice of a business organization is significantly influenced by the capital requirement of an enterprise. The nature and scale of operations determine the need for capital, with manufacturing concerns for larger-scale operations, typically requiring more funds. Next is the managerial and administrative requirements. Managerial and administrative requirements plays an important role in determining the appropriate form of organization. For small enterprise, catering to local needs, a single person may be sufficient making, sole proprietorship, suitable. As business expands to cover wider areas, the partnership form becomes more fitting, allowing multiple individuals to manage diver activities. Large-scale operations requiring specialized management in various departments find the company form of organization more suitable. And small-scale concerns like sole trade or partnerships may lake the capacity to employ professionally qualified individuals and qualified personnel. So, those expects are to be looked into beforehand. Next is liability. In sole trade and partnership business, owners pays unlimited liability, making their private property liable to meet business obligations. Now, the choice of organization totally depends on the risk involved, with businesses carrying more risk favoring the company's form. Sole trade or partnership concerns are more suitable for units with lower risk, reflecting the limited risk-bearing capacity of sole traders and partners. Now, let's talk about continuity. The stability of a business is a very important factor by choosing a form of organization. If a business is suitable, attracts substantial investment and seeks continuity, the company form is very ideal. Only the company structure ensures stability and permanence, as sole trade in business may close after the owner's death or due to various other challenges. Similarly, partnership form also lacks a permanent life and may dissolve from various reasons. The company form is unaffected by the personal lives of its shareholders, making it more suitable for continuity. Now, let us understand tax liability. A joint stock company incurs high tax liability compared to sole trade business and partnership firms, facing double taxation. The company is first taxed as an individual entity and profits are distributed to shareholders are subjected to further taxation as the shareholders income. In contrast, partnership concerns and sole trade business are not separately taxed, allowing the small concerns to avoid higher tax burden. Now, let us understand the government regulation in this aspect. Choosing an organizational form involves considering rules and regulations pertinent to each type, incorporating a company entails fulfilling numerous formalities, providing extensive annual information to the government and employing experts to meet statutory requirements. In contrast, as sole trade business and a partnership concerns are not obligated to meet legal requirements and registration is not compulsory at all for them. Next is the nature of business activities. The nature of a business significantly influence the choice of organizational form. A business dealing with local markets, seasonal products or perishable goods are most suitable for sole trading business due to lower capital requirements and smaller scale operations. Conversely, for enterprises targeting large market with extensive operation the company form of organization becomes more useful. If we talk about relationship between ownership and management, we would understand that in sole trade concern and partnership concern, ownership and management are directly linked. However, in the company form of organization ownership and management are separated. Now shareholders spread across the country, typically do not actively participate in day-to-day operations. Management is entrusted to a few individuals known as board of directors. Partnership or sole trade forms are suitable when investors prefer retaining management control. Alternatively, if investors prioritizes passive investment without active involvement the company form is preferable. If we try to understand the easiness information, we would see that the nature and extent of formalities needing or being needed during establishment is significantly impacting the choice of organizational form. Establishing a joint stock company helps in hiring qualified individuals for registration and incurred substantial cost. In contrast, starting a sole trade business involving fewer formalities and be initiate at any time without significant hurdles is much more easier. If promoters are unwilling to navigate their extensive formalities, they may find it challenging to establish a company. So the various factors discussed till now plays a various important role in influencing the selection of different organizational forms. The decision demands careful consideration due to the challenges associated with changing it or the form later on. It is essential not to base the decision solely on prison circumstances but to also account for future possibilities. With this, I end my today's program. Thank you.