Organisational Structure and Performance Analysis

This report provides a comprehensive analysis of organisational structure, performance, and the external environment's influence on decision-making processes. It examines the differences between private, public, and voluntary organisations in terms of size and scope. The relationship between Pestle and SWOT analyses is also discussed, as well as the strengths and weaknesses of British Airways. This report aims to provide insights for organisational performance improvement and strategic planning.

Business
and
business environement

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type and purpose of organisation...........................................................................1
P2 size and scope........................................................................................................................3
P3 Relationship between different organizational functions......................................................5
TASK 2............................................................................................................................................6
P4 Pestle analysis of British Airways.........................................................................................6
P5 Swot analysis of British Airways...........................................................................................6
P6 Relation between Pestle and Swot.........................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business refers to process of making money by buying or selling the goods and services.
Owner of business is responsible for its success and failure. Organisation is a service provider by
managing resources and making them beneficial for others. Organisation includes function like
marketing. Sales, operations, production and finance. Present study lay emphases on British
Airways. It is the largest airline in terms of number of passengers to be carried and size of fleet.
It is listed in top list of stock exchange. It has two different hubs; Heathrow airport and Gatwick
airport. This report will discuss the purpose, size and scope of different organisation. It will
analyse the relationships between different types of function of organisation. It will include a
presentation which outlines pestle and swot analysis of British Airways.
TASK 1
P1 Different type and purpose of organisation.
Organisation is a place where more than two people work on same purpose and for
achieving business objectives. There are three different type of organisation present:
1. Public
2. private
3. Voluntary
These different type of organisation follow different legal structure. Legal structure are
organisational structure which helps management system to manage employee in organisation
and directs them for earning more profit (Maduenyi and et.al., 2015). Legal structures are like
sole traders, joint venture. Private limited and public limited. Private and public limited legal
structure are form of licensing.
Public sector: - it refers to a not for profit organisation. Let's take an example of public
sector i.e., National Health Service (NHS). It has the facility of providing free health services for
treatment of citizens who are in need. NHS does not work to earn profit. It is a government
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Illustration 1: types of organisation
Source: ( Difference Between Public Sector and

authorised organisation which only works to help citizens for their treatment process. Purpose of
NHS is to provide many ranges of services related to their health treatment and to cure diseases.
People who avail services of NHS pay only prescription charge. They are exempted from other
medical check-up. It is free of cost. Not for profit organisation collects fund either through
donations, charitable trust or nay other investment process.
Private sector : - it refers to a profitable organisation. These type of sector works only
for earning profit. Let's take an example of British Airways company provide facility of airlines
to passengers for travelling from one place to another i.e., at both national and international
level. Purpose of British Airways is to be in list of the best airlines and wants to be at top among
all airlines. It tries to give all comforts to passenger in airlines. But private sector is mandatory to
follow legal and financial structure made by government authorities. Profit earned by British
Airways reinvested in launching new airlines hubs for earning more profit and to spread the
network more. Therefore, at a time it is also included in official airline partner in Olympic games
in 2012.
Voluntary Sector : - it refers to a non-government organisation. These are also non-
profit organisation. One profit is from government for NGOs is that they do not need to follow
state or central government rules. For example, Red cross is an NGO which works to help human
beings in terms of protection their life. The purpose of Red Cross is to provide services for
humans to protect their life and health. It is famous for promoting cooperation, mutual
understanding and peace among people. It is like an operational NGO which has no
discrimination factor like gender, age, colour. It gets fund through state government or
donations.
Legal structures: - there are different range and types of legal structures present which
are explained below:
 Sole trader: it is a legal setup owned and controlled by a single businessman. It is like a
franchise structure. Success or failure of business is debt to owner of business only.
 Joint Venture: In this, a single business is owned under partnership between two or more
than persons. Money is invested by each shareholder and respectively profit is divided in
between them.
 Private limited companies: these are the licenses company authorised by government but
in this government is not the owner. It operated by founder of business. Therefore, it does
not include sharing of stock exchange.
 Public limited companies: these are also licensed authorised company. Government id the
owner of these public limited companies means government holds more than 50% of
shares of business.
P2 size and scope
National health service
(public sector)
British Airways
(private sector)
Red Cross
(Voluntary sector)
Background NHS is established in
1948. It is a health
service provider.
It is an airline
company which
provides transport
facility at both national
and international level.
It is first established in
1953.
It is a NGOs which
works for protecting
life and health of
human beings. It is
founded in 1919.
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Size It works in approx 30
countries (Beijer and
Gruen, 2016).
It has a fleet size of
276. There are 183
destinations in world
of British airways
(Lyth, 2016).
It works worldwide
and there are approx
17 million volunteers
present in Red cross.
Scope NHS scope is to operate
worldwide so that desire
people who are in need
to have health services
can meet NHS easily.
British Airways scope
is increase fleet size
and also to spread the
airline network to all
countries.
Red cross scope is to
reach to every person
who need a support of
platform where a
protection is made for
them.
Objective NHS objective is to
provide treatment for
those persons who are in
need and to spread the
network worldwide.
Objective of British
Airways is to increase
the market share in
less time by spreading
network at large scale
(Harvey and Turnbull,
2016).
Red cross has the
objective is to protect
every human in terms
of health and life
issues.
Legal structure NHS has a licensing
legal structure. License
of public limited is given
to NHS.
British Airways has
structural business unit
legal structure. It has
also joint venture
organisational
structure.
Red cross has a
hierarchical
organisational
structure (Eaton,
2017).
Growth NHS has a great success
in providing services to
those people who are
suffering form major
diseases like cancer,
tumour. Their treatment
is done at very low cost
or negligible.
British Airways has a
sharp growth. Like in
2012, it has been an
official partner of
Olympic games.
It also leads to blood
donation services
which becomes an
additional
humanitarian factor.
There are different terms which are related to types of companies like:
International companies: These companies have facility of both importing and exporting. They
invest in their home country only.
Transnational companies: These are the most complexed business companies. They invest in
different foreign countries but has a central management authority for decision making.
Global companies: these companies trade internationally means also invest other than their
home country.
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P3 Relationship between different organizational functions
British Airways is an airline service provider company which operates at a very large
level. It provides transportation facility at both national and international level. Therefore, it has
Structure business unit organisational structure. In this, separate departments are made to operate
in different fields. It requires good relationship between each department for better growth and
sustainable development.
Finance department: this department handles the financial price of goods and services
provided by organisation for productivity and profitability. Finance department need to
coordinate with research, maintenance and marketing department to set the price of goods and
services. As British Airways is transportation service provider through airways. So, it need to set
the fare price accordingly (O’Grady, and Davies, 2017). Marketing department advices finance
about customer expectation so that all class people can afford to travel. Maintenance department
of British Airways gives information regarding investment cost made in maintenance and
repairing part process of planes. Research department of British Airways gives information
regarding economic news and current trend that going in the country. For example, to hire a new
launched plane, finance department need to take information about plane and then after can take
a step to buy.
Maintenance department: this department is responsible for repairing of machines that
are used to avail goods and services by maintaining quality. Management department of British
Airways gives details for defected parts of plane. Maintenance department keep in mind and
repair machines or engines or parts accordingly. Research department gives new mechanism for
repairing parts with the latest technology so that process become easy and provide qualitative
service. Maintenance department then coordinate with finance department for details regarding
maintenance cost that made in repairing and maintaining machines.
Operation department: This department is responsible for working process and
management of airways. For example, booking ticket, solving problems of passengers, checking
necessary equipments during transportation are functions of oration department (Burrell, G. and
Morgan, 2017). So, operation department need to interrelate with each department for better
growth and sustainable development. Services that provided by British airways are perfect or
not, it is all in hands of operation department. Operation department good skilled and talented
candidates which is a responsibility of human resource department.
Human resource department: employees who work in organisation are responsible for
growth and productivity. Employees are hired through human resource department. Skilled and
talented candidates is a need of British airways. Maintenance department require those
candidates who have technological knowledge regarding plane engines or parts so that repairing
ca be done in less time with better efficiency. Hence, HR fulfils all department needs and
responsible for candidate selection processes (Coccia, 2015). The position where British Airways
is standing is because of only employees who are working hard. So giving reward and appraisal
according to their performance is duty of HR.
TASK 2.
P4 Pestle analysis of British Airways
Covered in ppt.
P5 Swot analysis of British Airways
Covered in ppt.
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P6 Relation between Pestle and Swot.
Covered in ppt.
CONCLUSION
This report summarised about types of organisation present in world. Size and scope is
compared in private, public and voluntary organisation. Relation between different
organisational functions of British Airway is analysed where all units work on same purpose for
achieving business objectives. It explained different types of legal structures that are followed by
different types of organisation for making work process efficient and effective. By analysing
strength and weakness of British Airways, it helps it to reach to the top most level of airlines
brand. It outlined the factors which influence decision making process by managers in welfare of
organisation.
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REFERENCES
Books and Jornals
Beijer, S. and Gruen, J., 2016. Employee Engagement During An Organisational Change.
Books and Journals
Burrell, G. and Morgan, G., 2017. Sociological paradigms and organisational analysis:
Elements of the sociology of corporate life. Routledge.
Coccia, M., 2015. Structure and organisational behaviour of public research institutions under
unstable growth of human resources.
Eaton, J., 2017. Globalization and human resource management in the airline industry.
Routledge.
Endrizalová, E., Novák, M. and Kameníková, I., 2017. Development and trends in airlines
business models. New Trends in Process Control and Production Management, the
Slovak Republic. pp.119-123.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Harvey, G. and Turnbull, P., 2016. Human resource management and industrial relations. Air
Transport Management: An international perspective. p.307.
Karami, A., 2017. Corporate strategy: evidence from British Airways plc. In The Changing
Patterns of Human Resource Management (pp. 46-64). Routledge.
Kimani, G.K. and Ogutu, M., 2018. THE EFFECT OF EXTERNAL ENVIRONMENT AND
FIRM SIZE ON THE RELATIONSHIP BETWEEN KNOWLEDGE
MANAGEMENT AND COMPETITIVE ADVANTAGE. European Journal of
Business and Strategic Management. 2(9). pp.71-84.
Lyth, P.J., 2016. Air transport. Routledge.
Maduenyi, S. and et.al., 2015. Impact of organisational structure on organisational performance.
Monteiro, F. and Birkinshaw, J., 2017. The external knowledge sourcing process in multinational
corporations. Strategic Management Journal. 38(2). pp.342-362.
O’Grady, W. and Davies, J., 2017. Controlling and managing organisational performance: the
viable system model. In Understanding Sport Management (pp. 113-133). Routledge.
Online
Surbhi. 2015. Difference Between Public Sector and Private Sector. [Online]. Available through.
<https://keydifferences.com/difference-between-public-sector-and-private-
sector.html>.
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