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The Business Organization: Conceptual Approach

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There is a lot of literature on the matter, as well as various approaches to business organization. It is not the object of this work to carry out an exhaustive study of these conceptions, but rather to reflect on the different purposes that have been granted to the company since its inception and show how some are basic generic purposes of any human organization, and others are specific to business activity. Subsequently, the changes that are being generated in its conception will be analyzed, which go from an economistic tuition vision to an anthropological vision, and, finally, the characteristics of business organizations will be defined from the anthropological approach.

Purposes of the Business Organization

Organizations are known to be defined by their ends. They are characterized by being projects endowed with one or more objectives, some of them common to all organizations and others specific to each one, which allows them to be defined and differentiated. Tomas Melinda explains and collects very well the purposes common to every organization and the specific ones that have characterized the business organization.

Economic or Commercial Purpose

Since its inception, the company has been conceived for its economic purpose. That is to say, “in the essential sense of creation and distribution of intrinsically scarce resources, or in the narrower meaning of strictly monetary activity. And thus, the company could have been defined in terms of the production of goods and services, or in terms of narrower, attending to the generation of benefits “1 . Several classics, such as Woot, have considered economic creativity as a distinctive element of the business function, in such a way that companies create wealth, produce more than they consume, which is why it is concluded that, in addition to their function of producing goods or services They exercise a truly creative function by generating a surplus of wealth.

Individualizing a discriminatory element of companies that differentiates them from other types of organizations is not the same as defining them as a whole as an integral and complete whole. The consequences that derive from defining them exclusively by their economics tuition dimension, even understood in its broadest sense, ultimately lead to a counterfeit impoverishment. Because the objectives of the company define it, but not exclusively. As a group of human persons in contact and at the service of other people, business organizations have other more radical goals, which they must achieve through the management and in the proper way that their economic objectives and nature determine.

Production Conceived As the Sole Purpose of Economic

Activity Is a Deformation, dehumanization. Production is not evil, it is necessary, but there is something more than production and it is precisely the way in which what has produced affects who produces it2. Taking the basic idea of Thomas Aquinas, it can be said that making a profit is not bad if it does not become the main purpose of life. Transforming the generation of profits into the sole objective of the company is to convert a useful value into an end value. It is evident that the mere accumulation of benefits, without an ulterior end that gives reason for it, does not constitute, neither from the ethical point of view nor from the psychological point of view, sufficient justification for human life. Hence, the company has to define itself also attending to higher goals3.

The benefits can have a consequence character, of something that occurs without being directly sought; be the consequence of doing something right. Rather than being an end in itself, profits are the result of the management of entrepreneurs, but not necessarily what is directly pursued by them. Various concerns are raised about the issue: some organizations may believe that, when profits are not directly sought, they are not generated, or that, due to the excessive fixation of obtaining dividends, the interest paid to those other elements that they are the foundation of profit, on which dividends depend, such as better product, better service, innovation, participation in results, interest in the customer. Melinda poses,4. Melinda concludes that effectiveness (benefits) derives from an ethical attitude that requires treating people with dignity, “giving them primacy over things, always considering them as persons, as ends in themselves, and not as mere instruments or things. ( …) Treat people – and not money, machines, or minds – as a natural resource … Treat them – not capital investment or automation – as the main source of increase productivity. (…) Corroborate the priority of people not only in the attention to an improvement of the income statement, but because of their own intrinsic value, and face all the participants of the business organization under the reason of people , is the common area to forge the excellence of the entrepreneur and the ethical attitude of the entrepreneur “5 .

This Explains How Ethics Do Not Hinder Effectiveness;

An ethical attitude, attention to qualitative human factors and proper treatment of the person may, in the medium or long term, generate benefits, profits and results. Nor can it be said that ethics ensures the profitability of business. What it does ensure is that decisions will be more humane and will contribute to the humanization of the company and the personal development of those who make it up. And since ethics demands efficiency, it ensures that the appropriate means are sought at work for the proposed end.

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