Assignment no 1

Subject:
Introduction to Business

Submitted by:
Bareera Nazo

To:
Professor Mahad Jahangir

Qurtuba University D.I.Khan

Definition of business:
Any legal activity which involves the sale and purchase of goods or services is called
business.

Definition of Organization:
Organization can be defined as, an organized group of people with a particular
purpose, such as a business or government department etc.

Principles of a business organization:

Following are the principles of business organization

1. Principle of unity of objectives:

Organizational goals, departmental goals, and individual goals must be clearly
defined. All goals and objectives must have uniformity. When there is contradiction among different
level of goals then desired goals cannot be achieved. Therefore, unity of objectives is necessary.

2. Principle of specialization:
The term specialization is related to work and employees. When an employee
takes special type of knowledge and skill in any area, it is known as specialization. Modern business
organization needs the specialized, skilled and knowledgeable employees in order to achieve
organizational goal.

3. Principle of coordination:
Coordination means performing duties with the help of one another in an
organization. Coordination among employees facilitates in several organizational management
concepts.
4. Principle of authority:
Authority is the kind of power through which it guides the actions of others so that
the organizational goals can be achieved .Basically Top level management directs the tasks with the
authority of performing it to the subordinates of an organization.

5. Principle of efficiency:
Business organizations use different resources in order to produce demanded
products. These resources must be used in effective manner. When an organization fulfills the objectives
with minimum cost, it means the organization is working efficiently. Organization must always
concentrate on efficiency.

6. Principle of balance:
The functional activities in any business organization should be balanced properly.
Authority, centralization, decentralization must be balance equally. This is very challenging job but
efficient management perform this job very well.

7. Principle of communication:
Communication is the process of transformation of information from one person to
another. It involves the systematic and continuous process of telling, listening and understanding
opinions ideas, feelings, information, views etc. Effective communication is important in any
organization in order to transfer ideas or information from one person to another.

8. Principle of personal ability:

For sound organization, human resource is important. Employees must be capable.
Employees having good personal abilities can perform higher. Mainly training and development
programs must be encouraged to develop the skill in the employees.
9. Principle of flexibility:
Organizational structure must be flexible. Sometimes, dramatically change may
occur in the organization and in that condition, organization should be ready to accept the change.