How Organization differs and Types of Organization

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Organization differs on basis of their

  • Nature: providing product e.g Pepsi or services e.g internet companies
  • Purpose :whether to earn profit or not(nonprofit entities  like clubs)
  • Ownership :private entity(owned by individuals)  or public(owned by government)
  • Funding: depending on type of funding e.g listed companies are financed by share issue, charities are financed by donations

Types of organization

Different types of organizations exist, given below are the important ones :

  • Business Organizations: Their main purpose is to make profits. They appear as sole trader , partnership and limited companies forms
  • Public sector Organizations: these are owned by government, purpose is to render public services e.g health and education departments in state
  • Not for profit: profit making is not their purpose, they fulfill aims for which they are formed e.g charities, clubs
  • Co-operatives: these are organization comprising members which contribute actively in activities of entity to get mutual social, cultural benefits.