मंगलवार, 29 अक्तूबर 2013

Factors of Production – Organization (Enterprise)

Organization (Enterprise):
Organization of Enterprises means to plan a business, to start it and run it. It means to bring the factors i.e. land, labour and capital together to undertake a business or production process.
Organization implies not only running the business but also shouldering the loss, if any. The man who undertakes all this work is called as organizer or Entrepreneur.

Importance of Organization (Enterprise):
 Now a day, organization is very important as Production process has become too much complicated one. A small happening in the country or abroad influences the business. The organization if done properly the production process will not hamper. Hence proper planning and execution of business is necessary. In view of this the job of organizer becomes very important. Therefore whole time devotion of organizer is required for successful business. The other factors land is possessed by land owner, capital is possessed by capitalist and labourer is only ready to offer. They lay scattered hence these three needs to be combined and It is the job of organizer. Thus, organization would absent perhaps there would not be any production.

Functions of organizer (Entrepreneur):
 The following are the function of organizer.

1) Initiation:
 Taking the review of situation and availability of resources organizer initiates a business or production. Here planning of business is undertaken.

2) Organization:
 Organizer now combines the land, labour and capital resources and starts the business or production.

3) Direction and supervision:
 During the course of production proper direction and timely supervision is required. Thus, organize executes the business in a proper way.

4) Control:
 Organizer is keeping watch on changing situation. Because of changes in situation in respect of marketing, Govt. decision, etc. will hamper the business. Therefore control is also important.

5) Risk taking:
 Risk means uncertainty. It may be physical or market risk. The business can not be always in profit. Sometimes losses are required to accept. Risk taking is therefore becomes an important function of an organizer.

6) Innovation:
 A successful organizer is always innovative. He can introduce new method or commodity in the production process or in business.

Types of Business Organization:

1) Individual Enterprise: Business owned and run by single person.

2) Partnership: Business is owned and run by more than one but few persons. The number are too less and it is possible to know each other and combined action can be taken easily.

3) Joint-stock companies:  The owner members are large size and numerous. They do not know each other and hence the management of the business is done by few people i.e. Board of Directors e.g. Reliance company. It is always profit motive.

4) Co-operative Enterprise: The business is run on co-operative principles. Members may be numerous but Board of Director is elected body which runs the business e.g. co-operative sugar factory.

5) Public Enterprise: The business is owned by Govt. Therefore Govt. decisions determine the success of business. Largely they are run, keeping in view the service motive e.g. Railway, HP and Bharat Gas etc.


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