Types of Organizations and Organizational Structures

This presentation discusses the different types of organizations and their organizational structures, including private, public, and voluntary organizations. It also explores the functions of these organizations and how their structures contribute to achieving their objectives.

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Table of Content
 Introduction
 Types of organization
 Essential information of the companies
 Functions of the organization
 Organizational structure
 Conclusion
 References

Introduction
In every country various types of organisations operate their
business in order to achieve predetermined goals. These are
voluntary, private and public. In all these countries
different types of structures are followed which includes
matrix, flat and tall. A brief description of such companies
is provided under this presentation.

Types of organisations
Private: Such companies that does not offer their share
to public are known as private organisations. The
securities of the entities does not traded of stock
exchange of the country but they do have
shareholders. KFC (Kentucky Fried Chicken) is a
private company which is a fast food chain and
operating business all around the world.

Continued...
Public: All the business entities that offers its shares to the public are
known as public organisations. The ownership of such type of
companies are shared with general people who invests their money
in the enterprise. H & M is a public company which is Swedish
multinational retail and clothing entity.
Voluntary: Such companies which are working for the betterment of
society are known as voluntary organisations. They only work for
public their motive is not to earn profits. Oxfam is also a type of this
entity which is concerned with poverty removal activities.

Essential Information of companies
Basis KFC H & M Oxfam
Background It was founded by
Colonel Harland
Sanders in year
1952.
It was founded by
Erling Persson in
year 1947.
It is a voluntary
company which
was founded in
year 1942 in Britain
for the purpose of
social welfare.
Size KFC is a large
sized company
which is operating
its business all
around the world.
H & M is a large
size company
because the
business is operated
in more than 60
countries and
having around
132000 employees.
Oxfam is a large
sized organisation
in which 19
companies are
working together
for the betterment
of society.

Continued...
Scope KFC has a broad
scope as it
mainly deals in
chicken food
items that are
preferable by
people.
Scope of H & M
is wide because
it operated
business in retail
and clothing
sector in more
than 60 nations.
Oxfam's scope can be
defined with the help of
its social activities that
are performed for social
welfare.
Vision To become the
leading
integrated food
services group in
the world.
Vision of H & M
is to become the
leader of change
in fashion
industry.
Vision of Oxfam is to
make the world poverty
free.
Mission To increase
profitability and
achieve
sustainable
growth.
Mission of H &
M is to deliver
best quality
clothing products
to its customers.
Mission of Oxfam is to
find appropriate ways to
remove poverty.

Continued...
Business objective To capture larger
market share by
attracting large
number of
customers with the
help of tasty food
items.
Main objective of
the company is to
attract large number
of customers and
increase profits.
Objective of Oxfam
is to remove
injustice of poverty.
Legal structure In private sector,
legal structure can
be defined as sole
trader, partnership
and cooperatives
and limited
company. KFC is
cooperative
organisation.
General
government and
public corporations
are the legal
structure of public
sector. Central, state
and local
government are the
part of general
government. In H &
M public
corporation legal
structure is
In voluntary
organisations legal
structure can be
defined as
unincorporated
association, trust and
limited company.
Oxfam follows
unincorporated
association legal
structure.

Continued...
Organisational
structure
In KFC matrix
organisational chart
is followed because
it operates business
on international
level.
In H & M tall
organisational chart
is followed in order
to establish proper
hierarchy of
command.
In Oxfam flat
organisational chart
is followed as all the
members are free to
talk each other in
the organisation.
Stakeholders Government,
customers and
employees are the
stakeholders of
KFC.
Customers,
employees,
shareholders,
investors are the
stakeholders of H &
M.
Government,
trustees and
volunteers are the
stakeholders of
Oxfam.
Products and
services
Various types of
chicken food items
such as honey BBQ,
hot wings etc. are
offered by KFC.
Fashionable cloths
are offered by H &
M to the customers.
Social welfare
services are
delivered by Oxfam
to general public.

Functions of the organisation
In KFC matrix organisational structure is followed which helps to
conduct various functions in appropriate manner. All the
functions of KFC are described below:
Production: All the processes that are conducted by KFC to
prepare food items are considered as the part of this function.
Matrix organisational structure of the company helps to conduct
all the functions in appropriate manner because it segregates all
the departments and their activities so that all of them can be
conducted properly.

Continued...
Research and development: Market research and process of
collecting customer's data are considered as the part of research
and development functions. All of them are executed properly in
KFC with the help of matrix structure of the company because an
appropriate chain of command is followed under this
constitution. It helps the staff members to communicate in a
proper hierarchy and complete their work in effective manner.

Organisational structure
Matrix structure: In KFC matrix organisational structure is followed
which helps to achieve organisational objectives by establishing a
particular chain of command and hierarchy. As the main objective
of KFC is to capture large market share and this structure helps to
achieve it by segregating the work in different departments
according to the activities. Advantages and disadvantages of this
structure are as follows:

Continued...
Advantages: It can help to train managers to become
effective leaders by guiding them to control their
teams.
Disadvantages: It increases complexities and also
create conflicts among employees because
employees can report different leaders.

Continued...
Tall organisational structure: In this type of structure top
level leader takes and manager takes the important decisions
regarding operational strategy. So it is helpful to achieve the
objectives of H & M because work can be perform as per the
requirement of company.
Advantage: The main advantage of this structure is that, it
maintain a strong chain of command from the top level of
organisation which is help to communicate relevant information to
all employees. As a result all workers perform their roles and duties
to achieve the objectives of H & M.

Continued...
Flat organisational structure: Flat organisational
structure has an organisational structure with few or no
levels of middle management among staffs and
executives. As a result relevant information has
communicate to all persons which is helpful to achieve
the objectives of Oxfam's.

Continued...
Advantage:
It is helpful to removes excess layers of management & improve
the communication and coordination among workers as a result
work can be perform as per the need of company which is helpful to
achieve the objectives of Oxfam.
Disadvantages:
Workers does not follow the instructions properly and behave
causally as a result targets can be accomplish within stipulated time
period.

Conclusion
This presentation concludes that there are various types
of organisations which are operating business and all
of them follows different organisational structures
such as matrix, flat and tall. All these type of
structures help to achieve organisational objectives
by supporting companies to execute operational
activities in appropriate manner.

References
Vom Brocke, J., Seidel, S. and Recker, J. eds., 2012.
Green business process management: towards the
sustainable enterprise. Springer Science &
Business Media.
Weathington, B. L., Cunningham, C. J. and Pittenger,
D. J., 2012. Understanding business research. John
Wiley & Sons.

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