Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants.

Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted." Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods." Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions. Features of Business Characteristics or features of business are discussed in following points :1. Exchange of goods and services All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth. 2. Deals in numerous transactions

In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions. 3. Profit is the main Objective The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman. 4. Business skills for economic succesS Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business. 5. Risks and Uncertainties Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman. 6. Buyer and SellerEvery business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller. 7. Connected with productioN Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary. 8. Marketing and Distribution of goods Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity. 9. Deals in goods and servicesIn business there has to be dealings in goods and service. Goods may be divided into following two categories :-

1. Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc. 2. Producer goods : Goods used by producer for further production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc. 10. To Satisfy human wants The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction. 11. Social obligations Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is serviceoriented rather than profit-oriented.
The systematic and consistent reservation of authority at central point within the organisation is called centralisation of authority. The various activities of office are brought under the direct control of the office manager. According to Fayol"everything which goes to increase the importance of the subordinate's role is decentralisation and everything which goes to reduce it is centralisation." The importance of the subordinate is reduced and the importance of the superior executive is increased in centralisation.+ Centralisation of office services may be physical or functional centralisation. In the former state of centralisation, all office personnel are placed at a central place for work but in the later set up, personnel are scattered at departmental level but their control is exercised from a central point. Centralisation of authority in pure sense of the term is not found. A mixture of centralisation and decentralisation is the practice of today. Advantages of Centralization of Authority The various advantages of Centralisation of Authority are : 1. Reduced costThe standardised procedure and method helps in considerably reduction of office cost. Office cost is reduced as it does not emphasizes on more specialists, and more departmental machines and equipment. 2. Uniformity in action Uniformity in action is established throughout the organisation because of central administrative control. The same executive supervises the work and same type of office equipments are used which ensure uniform performance of activities.

3. Personal leadershipCentralisation encourages and permit personal leadership. The introduction of personal leadership facilitates quick action, aggressive marketing and attainment of pin-pointed objective or purpose, 4. Flexibility Centralisation permits flexibility and adaptability of the organisation to the changed circumstances. Occasional pressure of extra clerical work is handled with the existing staff. 5. Improved quality of workImproved quality of work is possible because of standardised procedure, better supervision and use of improved- machinery. 6. Better co-ordination Centrlisation facilitate better coordination among various operations. Direct control and supervision are facilitated which results in less likelihood of conflict of authority and duplication of work. Disadvantages of Centralization of Authority: Opponents attribute the following disadvantages against centralisation. 1. Delay in workCentralisation creates loss of man-hours and delay in performance of work because of transmission of records from and to the central control room. Quick decision is not possible which also results delay in office work. 2. Remote controlBetter supervision is not possible as the executives are under heavy pressure of work. Slackness in work is developed in the absence of better control and supervision. 3. No loyalty In centralisation there is no subordinate's initiative in work because they are required to do such works which they were asked for. Workers work like machine which results in no involvement in work and absence of zeal. All these factors stand as barrier in the development of loyalty to work. 4. No SecrecySecrecy is not possible in centralised set up organisation because here orders and decisions flow from one place and are conveyed to all. 5. No special attentionIn centralisation no special attention is given to special work as all works are done at one place.

Centralization is said to be a process where the concentration of decision making is in a few hands. All the important decision and actions at the lower level, all subjects and actions at the lower level are subject to the approval of top management. According to Allen, Centralization is the systematic and consistent reservation of authority at central points in theorganization. On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization. In a decentralization concern, authority in retained by the top management for taking major decisions and framing policies concerning the whole concern. Rest of the authority may be delegated to the middle level and lower level of management

Definition

The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management. A structure depends on the organization's objectives and strategy. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. A company such as Proctor & Gamble that sellsmultiple products may organize their structure so that groups are divided according to each product and depending on geographical area as well.
Different Types of Organizational Structures Traditional Structures These are the structures that are based on functional division and departments. These are the kind of structures that follow the organization's rules and procedures to the T. they are characterized by having precise authority lines for all levels in the management. Various types of structures under traditional structures are:

Line Structure - This is the kind of structure that has a very specific line
of command. The approvals and orders in this kind of structure come from top to bottom in a line, hence the name line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This is the sort of structure that allows for easy decision-making and is also very informal in nature. They have fewer departments, which makes the entire organization a very decentralized one.

Line and Staff Structure - Though line structure is suitable for

most organizations, especially small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes slower in this type of organizational structure because of the layers and guidelines that are typical to it. Also, let's not forget the formality involved.

Functional Structure - This kind of organizational structure classifies

people according to the function they perform in their professional life or according to the functions performed by them in the organization. The

organization chart for a functional organization consists of Vice President, Sales department, Customer Service Department, Engineering or production department, Accounting department and Administrative department. Functional

structure is set up so that each portion of the organization is grouped according to its purpose. In this type of organization, for example, there may be a marketing department, a sales department and a production department. The functional structure works very well for small businesses in which each department can rely on the talent and knowledge of its workers and support itself. However, one of the drawbacks to a functional structure is that the coordination and communication between departments can be restricted by the organizational boundaries of having the various departments working separately.

Divisional Structures

Divisional structure typically is used in larger companies that operate in a wide geographic area or that have separate smaller organizations within the umbrella group to cover different types of products or market areas. For example, the nowdefunct Tecumseh Products Company was organized divisionally--with a small engine division, a compressor division, a parts division and divisions for each geographic area to handle specific needs. The benefit of this structure is that needs can be met more rapidly and more specifically; however, communication is inhibited because employees in different divisions are not working together. Divisional structure is costly because of its size and scope. Small businesses can use a divisional structure on a smaller scale, having different offices in different parts of the city, for example, or assigning different sales teams to handle different geographic areas.

Matrix Structure
This is a structure which is a combination of function and product structures. This combines the best of both worlds to make an efficient organizational structure. This structure is the most complex organizational structure. The third main type of

organizational structure, called the matrix structure, is a hybrid of divisional and functional structure. Typically used in large multinational companies, the matrix structure allows for the benefits of functional and divisional structures to exist in one organization. This can create power struggles because most areas of the company will have a dual management--a functional manager and a product or divisional manager working at the same level and covering some of the same managerial territory.

Committee structure
A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the

committee. The committee organization is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented. It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments. Committee organization provides integrated ideas of various related people of the company. Participative management in true form is visible under committee organization. It is an incentive to volunteer to from integrated ideas and to willingly follow them. New ideas and solutions of various problems are feasible with the committee organization. It is a very good example of democratic management wherein every member has an equal opportunity to raise his voice and come to a common solution. Flexibility and technical excellence are possible under this organization. The top management is relieved from certain problems. The company can encounter the changing and uncertain environment in a better way. It facilitates high quality and innovative solutions to technical problems. Coordination and control become easy because open discussion is invited in the committee. Ideas and specialized functions are feasible under committee organization. However, committee organization may prove ineffective in some cases because of time consuming and inefficient devices, aggressive attitudes of some persons and inactive role of a particular group. The committee organization should not be used to supplement or support inefficient managers. An able and competent top manager with the capacity to handle the proceedings of the committee and manage disgruntled employees during meetings can get the maximum benefits out of committee organization. On the contrary, a weak and submissive manager or chairman may cause a number of problems in committee organization.