Lesson 2: Nature, Types and

Forms of Organizations
At the end of this lesson, you should be able to
1. Discuss the meaning of organization
2. Differentiate the types of organizations by main purpose
3. Differentiate the forms of business organization and
4. Discuss the nature of organizations
Organization
Organization is defined as a social setting composed of several groups
of people who bond and work together to achieve a common purpose
(Schermerhorn, 2011)

In line with interests and purpose, these people perform management

process of planning, organizing, leading and controlling.
 Types of Organization in the Philippines
based on Purpose
1. GOVERNMENT ORGANIZATIONS – in the form of national government
agencies or local government units (LGUs)

National government – mandated by law to perform specific duties and

responsibilities and provide services for people NATIONWIDE.
*the heads of national agencies are appointed by the president.
LGUs – also mandated by law to perform duties and responsibilities and
provide services but only to PEOPLE WITHIN THEIR RESPECTIVE AREAS of
jurisdiction and responsibilities.
* LGU officials are elected by people within their specific localities.
 Types of Organization in the Philippines
based on Purpose
2. PRIVATE ORGANIZATIONS – may
be subcategorized into business
associations which promote the
interests of the industry players or
business enterprises which earn
profits.
Business Enterprises
1. Corporation
2. Sole Proprietorship
3. Partnership
4. Limited Partnership
5. Cooperative
 Types of Organization in the Philippines
based on Purpose
3. NONGOVERNMENTAL ORGANIZATIONS - may be in the form of civil
society associations, corporate foundations, educational institutions,
small enterprises or research institutions. NGOs aim to serve a
particular group or target beneficiaries.
Government-Owned and Controlled
Corporations (GOCC)
GOCCs – government-owned and controlled but function as business
entities. Examples are National Food Authority (NFA), PAGCOR and
LWU.
Nature of Organization as Open Systems
Open System – implies a borderless nature of organization in relation
with its environment. It has external interactions.
Organizations, therefore, exist in a dynamic environment where
conditions vary. The dynamic environment allows the organization to
undergo a continuous process of change and evolve eventually.

Resource Inputs
Transformation
People Product Outputs
Process
Materials Finished goods and
Activities that convert
Money services
inputs to outputs
Technology
Big Idea
Organizations must be flexible enough to be able anticipate well and
respond timely to various changes occurring in the dynamic
environment where they belong. Otherwise, they may find themselves
with obsolete products, services, or ways of doing things.
Group Activity
• For today: Prepare a WorkPlan
• LIST 10 ORGANIZATIONS AROUND Angat Bulacan and CATEGORIZE it.
• Interview: Their organization
• Their purpose

• Submission: August 5, 2019