CAT / FIA FBT Syllabus A. The Business Organisation, Its Stakeholders - Different Business Organisation - Notes ^{4 / 5}

HOW BUSINESS ORGANISATIONS DIFFER:

1. Size of the organisation (number of employees)

2. Number of organisational levels (tall or flat organisation)

3. Span of control (That is the number of people directly under the responsibility of one manager)

4. Centralisation versus decentralization (this refers to the extent to which decision making power is delegated down the organisational hierarchy)

5. Criteria for departmentation (For example by geography, by product, by function etc)

6. Motive - Profit or non-profit making

7. Ownership – some organisations are owned by private owners or shareholders.  These are private sector organisations.  Public sector organisations are owned by the government.

8. Technology – Computer firms will have high use of technology but a corner shop would have very low use.