What is the conceptual framework?

The conceptual framework includes theoretical structures, including various assumptions, principles or rules, and follow the company in performing operations. This framework can be unique for the mission, vision and ownership of society. While smaller businesses may not use a conceptual framework in its organizational structure or managerial procedures, larger companies or corporations often use this framework to strengthen the strength of their operational environment. The common use of the conceptual framework is managed and management of companies. The commercial parties include individual investors, customers, managers, employees, government agencies and the general public. The conceptual framework of administration and management of companies often includes contractual agreements, harmonization of conflict of interest, and instructions for management of internal employees. These instructions ensure that the company does not record trade contracts or formal written agreements that override the economic resources of the company. The framework may also indicate a minimum acceptable percentageThe return levels for business investments and other professional relationships or partnership. The liability, rights and expectations of each entity of the contractual agreement may also be determined by the conceptual framework.

Companies often develop specific framework procedures for dealing with conflicts to ensure that internal or external business situations do not darken from their hands. While conflict resolution is an important business function related to external business stakeholders, large companies can also face numerous conflicts between different departments inside business. The conceptual framework may outline the specific role of each individual, department or other entity in business and how conflicts will be harmonized according to the company's procedure. Companies may use external legal council or arbitration to resolve conflicts concerning external trading parties.

Administration and management of companies usually includeE System of control and balance. This inspection and balance system helps executing managers or directors to limit the amount of power that an individual or group has in taking business decisions. To allow a single individual too much decision -making force can allow individuals to decide on his / her personal interests, not the interests of society. The internal sales department can also act in the same way if too many creators are grouped into one department. Although this situation may not be extremely non -refitable or dangerous, it can cause society along myopic path and cheat on the importance of the company's conceptual framework.