1.

ORGANIZATION
Definition:
"A social unit of people that is structured and managed to meet a need or to pursue
collective goals"
Organization is an open-system. It could be service organizations like GovernmentMinistry. It could be profit motivated organizations such corporations, it could be social
organizations and it could be Co-operatives.
Why we need to organize?
Organizations are the foundation of our being.
It gives us structure on how to function in our day to day
activities and helping in achieving the completion of common goal.
It defines our role & the importance of our talent/skill to succeed in meeting our
objective.
By defining everyones role, it can maximize production efficiently in completing and
meeting the groups goal.
Its like a long chain that is connected every link has a function and there is a defective
link it will make an impact on the outcome of goal.
It gives us order and understanding how to function on a daily basis.

2. ENTREPRENEURSHIP
Definition:

An entrepreneur is someone who perceives an opportunity, creates an organization, put

in resources and take risk to pursue it.

creator of wealth through innovation

Characteristics of entrepreneurship
Innovator Risk Taker Wealth or profit seeker, maximization of profit with given investment
creative and resourceful opportunistic excellent manager visionary
Sole Proprietorship
the simplest and
cheapest to set-up
no audit and
annual filing
requirement
unlimited liability
(danger)
no separation
between the
owner and its
personal assets

Types of Enterprises
Partnership
Berhad
same as sole
offer its shares to
proprietorshi
the public and has
p except there
more than 50
are more than
members
usually listed
1 owner
set-up is
companies & type
usually for
selected by large
professional
businesses
govern by the
firms such as
lawyers and
Securities
auditors
Commission of
Malaysia

SDN BHD (LIM COM)

common form of
companies in
Malaysia
Separate Legal
Entity
Limited Liability
(separation
between the owners
and its personal
assets)
Credibility

3. PUBLIC & PRIVATE SECTOR ORGANIZATION

Definition

Act
Motives

Charac

PUBLIC
Owned and controlled by the
government.
They aim to
provide public services.
Government is the system by
which state or community is
controlled.
the collective group of people that
exercises executive authority in a
state
Parliament Act
Maintain law and order, Safety and
Security, provision of public goods and
services
State Ownership
State Control
Public Accountability
Autonomy
Coverage

PRIVATE
The private sector is the part of
the economy that is not state
controlled, and is run by individuals
and companies for profit
Encompasses
all
for
profit
businesses that are not owned or
operated by the government.

Company Act
Profit

Private Ownership and Control

No State Participation
Private Finance
Independent Management
Profit Motive

NGO: A non-governmental organization (NGO) is an organization that is neither a part of a

government nor a conventional for-profit business. Usually set up by ordinary
citizens, NGOs may be funded by governments, foundations, businesses, or private persons
Corporative: Firm owned, controlled, and operated by a group of users for their own benefit.
Each member contributes equity capital, and shares in the control of the firm on the basis of
one-member, one-vote principle (and not in proportion to his or her equity contribution)

4. MANAGEMENT
Definition:
Management is the function that coordinates the efforts of people to accomplish goals
and objectives by using available resources efficiently and effectively.
Why study? The Objective

EFFICIENTLY (doing thing right) , EFFECTIVELY (doing the right thing),

PRODUCTIVITY (min capital max output) Peter Drucker
Functions
P (lanning) O (rganizing) S(taffing) D (irecting) Co R(oordinating)

Organizational Structure of Management

typically hierarchical arrangement of lines of authority, communications, rights and duti
es of an organization

Principles of Management (Fayol)

5. STATUTORY BODY/SOE
DEFINITON:
A state-owned enterprise, also known as state-owned company is legal entity that
undertakes commercial activities on behalf of an owner government
form of SOEs; statutory bodies, public corporations, registered under company act,
public listed, GLC
Operate in a commercial manner, with asset, liabilities, cost and income and dividend
payment to shareholders.....100% shares may be owned by the government.
GLCs with share ownership by the state.
CHARACTERISTICS/STRUCTURE
Ownership - who own, share ownership, golden share
Source of capital - government, market, budget, parliament approval
Management - public servant, professional managers
Appointment of BoD - Ministers, Head of Departments
Role of Government Ministry and Departments - Government appointed, Meeting
needs and objective of Establishment of SOEs
Natural monopolies, security and defense industries and large
infrastructure ventures
Accountability - Auditor General, Head of Ministry, the people

 POLITICAL interference, in administration and BoD function

Good governance - open to abuse, corruption and CRONISM

6. ORG CULTURE (GOVT) / CORPORATE CULTURE (PRIV)

Definition:
The way in which members of an organization relate to each other, their work and the
outside world in comparison to other organizations.
The way we do things.
Etc: Money spending
ETC:

Means-oriented vs. Goal-oriented

Internally driven vs. Externally driven
Easygoing work discipline vs. Strict work discipline
Local vs. Professional
Open system vs. Closed system
Employee-oriented vs. Work-oriented

7. BUSINESS ETHICS
Definition:

Business ethics are moral principles that guide the way a business behaves. The same
principles that determine an individuals actions also apply to business.
Acting in an ethical way involves distinguishing between right and wrong and then
making the right choice.
Combining of beliefs and ethics.