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A business organization is a group or a person of people that join forces to achieve certain commercial goals. Business organizations are set for the purpose of earning income for the owners. An example of business organizations is sole proprietorships, partnership, companies, online paper writing service reviews and cooperates. Other organizations are those set with an aim of improving the living standards of a particular community or group. Their main major is not to make a profit though they may generate income which is termed as surplus. Examples are non-governmental organizations, public schools, churches, health agencies, refugee camps, professional service organizations. Reference to this business group does better as compared to other organizations depending on the structure. The following factors will be examined when dealing with the similarities and differences found in the business organizations and other organizations; leadership, finance, funding, mission, salary, promotion, staff, committees, and size.
When looking for the leadership similarities, both organizations have leaders who give directions and manage resources, they typically provide short term and long term work schedule on how the organization should be run in the current and the future. The boards of directors of both organizations oversee the functions of the organization through the selected committees. In leadership, we have the managers who take part in the process of controlling, planning and organizing of the activities. The differences in the organizations are; in business organization, the major aim of leaders is to make maximum profit from the minimum input while other organizations leaders focus on the satisfaction of the needs they intend to serve. In business organizations, there is a lot of competition and leaders are recruited based on academic, experience and performance while other organizations choose their leaders through elections and volunteering. In the article ‘’non-profit vs. for-profit leaders, which compares whether the leaders of the two group are better than the other based on the United States and Canada states that leaders from business organizations that are based on profit speak more effectively as compared to their counterparts from the other cooperates ‘’2008.”
Both the organizations require money in order to carry out their daily operations in order to meet their goals, they also have finance department which allocates money and conducts auditing to ensure there are transparency and efficiency in the way money is allocated ‘’Karson 2006.’’ it is mandatory for the business organization to remit audited books of accounts to the government when paying tax while the other organizations such as public schools and NGO’s may be exempted from tax. The main objective of business organizations is to minimize expenditure to maximize profit while the goal of other organizations is to meet the set standards for their organizations.
Promotion occurs to the workers of business organizations and other nonprofit organization. According to analysis that was carried in the year 1992-1995 on the urban inequality, an employer survey, multi-city study, the writer found that the chances of the workers to receive promotion were less likely to be promoted in the nonprofit organizations, this is contrary to the business organizations where promotions were given a priority based on performance of the workers ‘’ Devaro and Brookshire, 2007’’ this article also depicted on how nonprofit cooperates did not base their promotions on merit or performance in job same to the business organizations. Instead, they opted to offer incentives to the workers based on their input as an instrument of motivation. The research also indicated that workers in other organizations were more motivated than those in business organizations; however r, this did not occur as a result of material compensation.
For the business organizations, the staff is paid their salary depending on the number of hours worked for and had quite a large workforce including unpaid interns while other organizations mostly depend on volunteers and employ small workforce. Workers in the same job group are paid less in the business organizations as compared to the other organizations. The motivation for the business organizations workers is majorly through salary increment, unlike other organizations who receive other incentives. Hiring and firing of workers in business organizations is done through thorough scrutiny as compared to other organizations.
Business organizations get their funding from the owners of the business normally termed as shares which they refer to working capital, cash flows, and financial capital markets while other organizations solicit their funds through individual donations, charitable foundations, government agencies grants philanthropic contributions and fundraisings.
Nonprofit organizations spend most of their time doing day to day operational issues such as fundraising, a budget achievement that occasionally makes them loose focus towards their mission. Sometimes they forget to recall that their goals and objectives id to fulfill the service and social objectives, therefore, they are required to remain focused on their goals. Tracking the progress and development of their organization is not easier at all. For the business organizations, the economists do argue that their mission is to earn a reasonable return on their investment. However the business organizations sometimes give ancillary services, for example, contribution towards the local community, employment, and the tax that support the state and the community as a whole.
Other organizations have many committees while the business organizations have limited committees usually on compensation, auditing and for governance. There may also exist committees on technology and the public relation among the business organizations. Other organizations have development, facilities, and investment committee.
The board of business organization depends on the ownership; thus, it is limited while other organizations their board tends to be larger since it has different members. The board is large because every area needs to be presented. Normally the board members of the business organizations are paid thus the number is restricted while other organizations board members are on the volunteer services.