PARTNERSHIPS AND CORPORATIONS
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All existing organizations are not the same. (Klein, W. A. (1982). Some organizations can give their owners a lot of important degree of protection from the liabilities, while some organizations do not provide that. Some business is highly controlled, while others are not. Above all, the taxes imposed in different business entities are not the same. Some companies within an industry may have the same organizational structures but no single point can they be identical. (Klein, W. A. (1982). Different organizations have different laws and economic structures. For someone to analyze the current business organizations it is important to understand the terms of the economic arrangement between the organization.
An analysis of the business elements, economic arrangement, and business environments. (Klein, W. A. (1982). Partnership and corporation are the perfect examples, as they are both business organizations. In a partnership, there is a collaboration, which is diverse between, with a contract between two parties, who can carry out a certain business, the profit from the business is also shared equally. It can also be between the public and the private sectors. Where the public sector outsources services from the private sector. (Mazouz, B., et al (2008). While corporations arise from different individuals both collaborating. The individuals have separate rights and liabilities from the corporation. It always contains the vision, mission statement, and the resources of the company.
The two organizations are bound by different legal laws. In partnership, the legalities in its formation state that there should be a minimum of 2 individuals and a maximum of 20 individuals which is voluntary. More than 20 members of the partnership are illegal. All the members of the partnership should be competent enough to make their own decisions. (Mazouz, B., et al (2008). Existence of a business that follows the rules and laws which has an agreement of profit-sharing between its members. Corporations have different legalities from their owners. Who enjoys the organization’s limited liabilities, but they are rarely involved in the decision making of the organization. They enjoy many advantages ranging from the taxes, securities, minutes of the board, licensing, and professional standards. Which if not followed will lead to personal liability for the actions of the cooperate.
Many local partners are involved in the formation of a partnership. Who develops the workforce for the organization, the relationships between the owners and the workers are enhanced as they know each other. government actions also affect the partnership formations. The low-level business and the local businesses are always the ones who decide on the management of a partnership. Most of the non-profit making organizations are involved in economic development (Balducchi, et al. 1997). Corporation’s social environment is composed of cooperating executives, the shareholders who directly depend on the corporation for their economic needs. The big corporation contains big markets thus becoming the major part of the citizens and people’s lives. There are big numbers of corporate employees and also the consumers who have created a large social organization.
Corporate revenues have been confirmed to be the world’s largest economic organizations, with a macroeconomic environment. It is different in management between the partnership and the corporations. as a partnership is managed by the partners while corporation is managed by different shareholders who may collectively decide to employ the board of directors who will run the corporation, in partnership the partners are liable in the actions and finances of the business while shareholders are not liable when it comes to a corporation (Dickinson, H. (2014). The financial successes of any organization are directly related to the workplace culture of the organization. With the enhanced teamwork and management within the partners, the partnership also treats its employees fairly and with high respect. With clear communication between the partners, making them play equal roles. The case is different with the corporate cultures as most of its cultures negatively affects the firm market value of the company (Kono, T. (1990) Cultures such as the integrity, innovation culture promotions have no direct relationship with the financial success of the company.
The corporate leaders must relate the corporate goals with the employees’ understanding of the goals. The up or out policy as used in partnership enables the employees to advance to high managerial positions at a predetermined pace within a known period. While in cooperation the managers consider an employee for promotion if he or she is qualified, experienced, and has a good performance record from the previous position. The management and the partners are all involved in the process of making strategic decisions in a partnership. Through a consensus model, every partner has an equal opportunity of sharing his or her own opinions in the strategies that can lead to the success of the company. All the decisions are detailed in the contractual agreement form. The board of managers elected by the shareholders is involved in the strategic decision-making process of the corporation. The styles involved can either be from bottom to top management or from the top management to the bottom management.
The partnership relies on the quarterly management style where partners are for sales so the VP of sales manages them, with the coaching styles, and the democratic styles where every partner is given equal opportunity to take part in leadership. In the company, they encourage the use of passive styles of communication and also the assertiveness. While in the corporations the board of directors is always authoritative to the employers in managing the company, they also encourage the employees and the shareholders to actively participate in the management processes, both corporation and the partnership organization employs the use of democratic and transformational leadership styles. With passive and aggressive communication methods.
The SWOT tools are used in the strategic planning by the general partners, with methods that encourage other partners to take part in the management of the companies risks, weakness and also to know the opportunities that will help the organization to compete freely in the market (Helms, M. M., & Nixon, J. (2010). The corporate managers including the board of directors use the SWOT tools to evaluate the competitive levels of the company in the market. They do a thorough analysis of the previous, current, and even future risks, with the internal and the external factors into consideration. After the analysis, the partners come up with an operational framework that will enable the business to improve its services. In also enables the corporation to improve its strategies in matters concerning its process.
Overall the partners play an important role in the management of a partnership, as they are equally involved in all the processes. While with corporations there is the board of directors, the finance officer, and the operational officers who play a key role in managing the company. The strong points of the partners managing teams are they have enabled the company to have a high borrowing capacity and also with their, various decisions from different partners they have come up with high qualified employees. However, the managers need to consider their borrowing capacities as every partner is liable for the partnership’s debt. The board of directors in the corporation has played a key role in motivating their employees and enhancing teamwork among their employees. Unfortunately, they need to improve training and to enhance their planning skills.
References
Klein, W. A. (1982). The modern business organization: Bargaining under constraints. The Yale Law Journal, 91(8), 1521-1564.
Mazouz, B., Facal, J., & Viola, J. M. (2008). Public-private partnership: Elements for a project-based management typology. Project Management Journal, 39(2), 98-110.
Balducchi, David E., Terry R. Johnson, and Mark R. Gritz. 1997. “The Role of the Employment Service.” In Unemployment Insurance in the United States: Analysis of Policy Issues, Christopher J. O’Leary and Stephen A. Wandner, editors, Kalamazoo, MI: W.E. Upjohn Institute for Employment Research, pp. 457-501.
Dickinson, H. (2014). Performing governance: Partnerships, culture and new labour. Springer.
Kono, T. (1990). Corporate culture and long-range planning. Long Range Planning, 23(4), 9-19.
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now?. Journal of strategy and management.