Types, Purpose, and Structure of Organizations | Desklib

This report discusses the different types, purpose, and legal structure of public, private, and voluntary organizations. It also explores the interrelationship between organizational functions and their impact on achieving organizational goals. Additionally, it analyzes the positive and negative effects of the macro-environment on Rynair. This comprehensive study material is perfect for business students looking to gain valuable insights.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Various Types, purpose and legal structure of public, private and voluntary organizations. 3
Identify size and scope of different organizations..................................................................5
TASK 2............................................................................................................................................6
Relationship between objectives and structure of the different organizations.......................6
Advantage and disadvantage of interrelationship between organizational functions and its
affect.......................................................................................................................................7
Critical analysis of the complexities of various types of structure and interrelationship of the
organizational functions.........................................................................................................8
TASK 3............................................................................................................................................8
Positive and Negative effect on Macro- Environment on Rynair..........................................8
TASK 4..........................................................................................................................................10
Internal and External Analysis of companies.......................................................................10
SWOT Analysis and its justification on decision making....................................................12
Strength and weaknesses interrelation with external macro factors.....................................13
Impact of Both macro and micro factors on objectives and decision making......................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is collection of internal and external factors which including
employees , customers, demand, needs, expectation , suppliers , technology and market activities
and government involvement. There are various types of organizations which can be
differentiated on the basis of their purpose and size. This report deals with three types of
organisations like public, private and voluntary. The public organisation chosen for this report is
National Health Service (NHS) and Raynair Company from the private sector and Shelter
Company from the Voluntary sector. This report will discuss the different types of organizations
and their types, purpose, size, scope and legal structure. Apart from this report also discuss the
interrelationship between different organizational functions and structure. To analyse the internal
and external factors of the company PESTLE and SWOT model used and explain how internal
and external factors affects the operations of the organisations.
TASK 1
Various Types, purpose and legal structure of public, private and voluntary organizations
Business is a separate entity which is creates to fulfil their goals with the help of
commercial activities. There are various types of organizational sector which can be define as
public, private and voluntary which are discussed below-
Public Organizational
Public organization are formed and managed by the government. In public organization,
the involvement of government as whole. Public sector offer products and services for the
benefit of the society. The main purpose of public sector is betterment of society rather than
make profit. These sector generally funded by the taxes which are generally raised by the United
Kingdom government from the public (Abdel-Basset, Mohamed and Smarandache, 2018).
Purpose- The prime purpose of public sector is to offer service to the people for their
benefit not for the profit.
Example- National Health Service
Legal Structure
 Public Corporations – Public corporations consider as an entity that basically formed by
the state so that it carry out the mission and services for the public. To carry out the

public services and missions, public corporation considers those activities and provides
all the services that generally also offered by the private corporation.
 Municipal Enterprises - It is generally a legal term which is used for a local body which
governs the society including town, cities, countries, villages. This term also determined
as a municipally owned associations and corporations.
Private Sector Organisations
These organizations are controlled by the individual person or a group of people. In
private organization there is no involvement of the government. These organization work only
work for the profit maximisation.
Purpose- The prime purpose of this organization is to generate more profit and also work
properly to enhance the efficiency and productivity of the employees so they will perform well
and help to earn more profit (Alford and Greve, 2017).
Example- Rynair
Legal Structure Sole Proprietorship- Private Organisation controlled by the single person who is
responsible for the daily operations. Main concern is profit earning and focus on
employee’s productivity which is required to survive in competitive market. Partnership- Private Organisations also managed and controlled by the one or more
person and become partners. Mostly private businesses are running in partnership.
Partners share profit, losses together and also responsible for each and every
organizational activities (Battaglia, Landoni and Rizzitelli,2017).
 Companies- Companies refers as a joint stock ventures and act as a separate legal entity.
It is also considered perceptual succession which means that owner of the company will
change or come or go but company remain forever.
Voluntary Organization
These organizations are established by the some members who run the organization with
a common purpose. These organization build for the welfare of the common population and
provide services to the welfare of the society.
Purpose- The main purpose of this organization is to work for the people. These
organization work not for profit.
Example- Shelter

Legal structure- Unincorporated Association-voluntary organization are managed and controlled by the
groups and these organized established as limited by grantee. Group of people involved
in this and start moments and association (Bull and et.al., 2016).
 Trust- main concern of these organization is on charities. These organization managed
according to the trust deeds and which is helpful to maintain the financial needs.
 Charitable Incorporated Organisation- This organisation basically refers as a CIO.
Charitable incorporated organizations consider as a latest kind of legal format for a
proper registered charity. It is like a incorporated types of charity that is not consider as n
limited entity.
 Community Interest Company – It is generally a specific type of company that designed
for the purpose of social enterprises that basically used their assets and profits for the
betterment of people.
Identify size and scope of different organizations
These organizations explained on the basis of their size which are discussed below- Micro enterprises- In micro enterprise, the total number of employees can work is 0-10
and the enterprise turnover less than £2 million pound (Explain the different types, size
and scope of organisations, 2020. Small enterprises- in small enterprise, 10-50 employees can work and the turnover of this
enterprise less than £10 million pound. Medium enterprises- in medium enterprise, total 50-250 employees can work and the
turnover is less than £50 million
 Large enterprises- In large enterprise, more than 250 employees can work and the
turnover of this enterprise is more than £ 50 million.
Scope of different types of organisations
The scope of different types of organization are discussed below-
 Local organizations- These types of organizations are contain as an entity which
establish association to collect multiple people who have same interests and requirements
so that they can share their ideas and thoughts and help each other in a entity.

 National organisations- National Organizations consider as a professional associations
and registry that basically approved by the specific departments. National organizations
are responsible for the all the social responsibilities of the country.
 International organisations- The scope of international organization is very wider
because its reach range is high. Its origin is place on multilateral international and its
agreements. These organisations consider the formation of federations and leagues like
international administration, safety and security, movements for basically for the
governmet.
 Global organisations- Global organizations include international alliance that involves
various countries. These organizations are essential and perform many functions like
information’s and trends, delivering services and offering forums for a specific
bargaining and setting conflicts and disputes.
TASK 2
Relationship between objectives and structure of the different organizations
An organizational structure is considered as a system in which it creates outlines to
perform certain activities. With the help of organizational structure company get direction of
each and every activities of the organization in order to accomplish organizational goals. These
activities include roles of employees, rules, regulation and responsibilities. Organisation follows
flat organizational structure. In flat organizational structure, decentralized decision making
authorities make functioning more effective and the timing of this decision making is limited and
properly followed (Islam and (Islam, Mamun,2017).
. Organizational functions are playing crucial part to manage and maintain each and every
departmental activity. With the help of organization functions, company can easily achieve their
objectives.
Human Resource and Marketing Function – HR Functions of organisations playing an
important role. HR department is hiring right employees for the right job role. This is the
speciality of HR. HR department hire high skilled employees how have a good knowledge about
the all basic of airlines and its services. Marketing department of organisation is functioning in
communication and promotion process of the products. Marketing department correlated to the
HR department. The role of marketing function is essential for the HR department of the

company it help in perform their functions smoothly. Marketing department help to promote and
advertise the job applications and HR departments to recruit talented employees for marketing
department. Both marketing and HR functions work together for the accomplishment of
organisation objectives,
Financial and IT Function- Finance department of the organisation is responsible to prepare
and allocate budget to every department so that all the departments of the organisation perform
their job in best manner. The IT (Informational Technology) department of the organisation is
responsible to design the products in attractive way so that customers will take interest on it.
These two departments perform their job together so that they will accomplish organizational
goals. Both functions are responsible for the organisation growth and help in achieve the
organisation objectives (Lynch Gainey and Chappell, 2016).
Operational and Research and Development Function- The operational department of the
organisation work in manufacturing and operating activities. Operational department is
responsible in all the operational activities related to the company services and also maintain
existing services. Research and development department of the organisation do market research
as per the customer requirement and after this prepare a report and that report will deliver to the
operation department then operational department work on it to take a competitive advantages.
Explain organisational structure and the part it plays to help achieve organisational goals
Organisational structure is like a outlines of the organisation that guide all the employees
and give them directions for each and every activities of the orgnisations so that employees can
follow it in a systematic manner. organisational structure are very crucial for the organisational
success and help in achieve the organisational goals. organisational structure give proper
direction on the rules , regulations, roles and responsibilities of the organisation which need to
follow in a proper way.
Advantage and disadvantage of interrelationship between organizational functions and its affect
When the organizational functions work together inter relatively then company faced
some advantages and disadvantages. Organisation also experience some advantages and
disadvantages. When all the organizational functions are related with each other department then
its become easy and convenient for other department. When all organizational functional are
interrelated so one department functions helps in another department functioning and both
departments work smoothly for example Human resources department perform their work with

the help of marketing department and recruit and select lots of talented and potential employees
and marketing department appoint marketing expert employees with the help of human resource
department. Financial department preparing budget as per the requirement of the other
department and Information technology department also creating many technologies so that it
will help all the department by giving advanced technology and techniques. So the main
advantage of the interrelation between organizational function is that all the functions easily
coordinate and cooperate with each other. But there is a disadvantage also exist. The main
disadvantages of this interrelation between organizational function is that all the functions
become dependent with each other so that's why many problems occur. Too much dependency
with other functions is not appropriate in every situation (Phadermrod, Crowder and Wills,
2019).
Critical analysis of the complexities of various types of structure and interrelationship of the
organizational functions.
Business structure is playing a significant role to manage all the functioning and
activities. Rynair is following flat organizational structure in this structure it consider few level
of middle management. Mostly flat organizational structure followed by the small organization
because small organization do not have large number of staff. In flat organizational structure no
middle level exist. Employees communicate with each other randomly. The main complexities of
this structure is that there is no flow of communication and no record available for they
communication process. Organization mainly follow informal communication. These are the
main complexities of this flat business structure (Prajogo, 2016).
TASK 3
Positive and Negative effect on Macro- Environment on Rynair
PESTLE analysis is frame work of analysing the external factor of the environment
(political, economical, social, technological, legal and environmental). These factors will effect
the organisation from the outside. Rynair is an Irish airlines established in 1984 and its
headquarter in Dublin, Ireland. It is the largest European carrier of passenger volume. This is the
international airlines and faces many impact of external environment and the factors are as
follows:

Political Factor: These are the factors which includes taxation policy, government stability and
trade restrictions, which influence the external environment of the business and these are
uncontrollable factors for the company and these factors affects the organisation directly and
indirectly in both manner.
 Positive Impact- If the Rynair follows all the rules and regulation of government and if
there is a trade policy in UK and EU then it will help the organisation in foreign trade. Negative Impact- The uncertainty over Brexit to be a challenge for the Rynair for the
trade between UK and EU (PESTLE Analysis of Ryanair).
Economical Factor: These factor which include economic growth or decline, interest rate,
exchange rate and wage rates, includes working hours, minimum wages and unemployment.
 Positive Impact- Oil prices are expected to remain constant and this helps the
organisation in operational margins and smooth functioning of budget (Racz and et.al.,
2018).
 Negative Impact- Due to Brexit, partition of UK from EU. This affect the GDP of the
country and leads to increase the pricing policy. On other hand, there is a major impact of
COVID-19 on economy and aviation.
Social Factor: socio-culture factors include cultural norms, health consciousness, population
growth rates, age distribution, career attitude and safety. These factors will affect the
organisation.
 Positive Impact- Rynair is offering low cost travelling to their customers and providing
affordable price on tickets.
 Negative Impact- Consumer are choosing high speed rail over airlines on short haul
routes. Travelling through airways is the time consuming, before travelling in arrival and
departure process.
Technological Factor: These factors include change in the technology of products or operations,
development of new ways of business. How will this affect the product and services of the
organisation.
 Positive Impact- Rynair is improving their mode of booking, enhance in the digital
platforms ( mobile and website) to improve the customer experience.

 Negative Impact- there are many other airlines which are offering better services to their
customer and this the impact on Rynair in growing their business (Rahmawati, Rispantyo
and Djamaluddin, 2017).
Legal Factor: These are the factors, which includes rules and laws imposed by the government
and includes import and export tariffs, access to material etc. this is difficult to follow all the
laws of the government in order to run the organisation successfully. These factors affect the
operations of the organisation.
 Positive Impact- Rynair is getting support from the European Commission in support of
certain European airports so it affect the operations of the organisation.
 Negative Impact- With the effect of Brexit, this requires comply with both the regions
UK and EU for their rules and regulation.
Environmental Factor: these are the factor which includes the increase need to switch to
sustainable resources, pollution and saving the natural resources and following all the
environmental laws (Wang and Li, 2016).
 Positive Impact- Rynair is following all the environmental law in order to sustain in the
environment.
 Negative Impact- EU regulation have added some aspected which needs to be followed
by the organisation and it may increase in the cost of Rynair.
TASK 4
Internal and External Analysis of companies
SWOT analysis is a framework that evaluate the internal and external environment that a
re impacting the organisation and with this, company can take right measures in order to
overcome certain threats (Wo, Hipp and Boessen, 2016).
SWOT analysis of Rynair:
Strengths Weaknesses
1. Airlines established their business in the
European market and covering 200
destinations with 1800 routes so that it help to
reach large number of people and offer them
their convenient services.
1. Change in compensations of employees and
their relationship in the organisation affect the
organisation goodwill.
2. Expansion in the airlines, cause the volume
of the business because Rynair is working on

2. Rybair organisation prepare proper balance
sheet and good shareholder share of profit
(Ryanair SWOT & PESTLE Analysis,2020)
and as per the Irish Stock Exchange, this
Organisation has year en cash that is equivalent
of £ 3.8 Billion. Organisation earns profit of
£1 billion in a financial year.
3. Organisation offers their services at low
cost so that it takes huge competitive
advantages and enhance the market value of
the organisation.
lower level which make the bad reputation of
the organisation.
3. Rynair has weak refund policy which creates
issue for the customers so that it creates the
negative image for the organisation.
Opportunities Threats
1. Rynair should focus on customer experience
through Always Getting Better(AGB) program.
In this time, Aviation industry becomes slump
so it leads to plan to offer at least plan for
15000 job that directly affect the Rynair
organisation.
2. Company has a good scope to increase their
market share and organisation is about to hire
many professional talent for their organisation
which leads the high talent ability.
1. Due to Brexit incident, the fall in GDP in the
country will affect the Airlines and forced the
company to increase the price of their products.
2. Change in the price of the fuel, will affect
the pricing policies and business model of the
company which affect the performance of the
organisation directly.
SWOT analysis of National Health Service:
Strength Weaknesses
1. NHS is growing day by day since
established in 1948, expanding their market
share across the world so that it leads the high
productivity of the organisation.
1. The population is increasing day by day and
NHS is not able to manage with the high
demand of customers which affect the
organisation performance.

2. Organisation is maintaining good
relationship with all shareholders with a
consideration of profit maximization and also
considers all the necessity of their employees.
2. There is a negative attitude and behaviour of
the staff towards organisation, This leads to
slow work flow in the company and give
negative impact on the efficiency of the
organisation.
Opportunities Threat
1. NHS has opportunity to expand their market
by using various marketing strategies so that
organisation can accomplish their objective in
an appropriate manner.
2. Organisation can do partnership with private
and voluntary organisation across the world so
that it will help to enhance the market value of
the company.
1. Contractors affect the reputation of the NHS,
by its poor performance which gives the worst
impact on the organisation image and
organisation face threats.
2. Company is dealing with large number of
employees and facing high turnover which lead
the slow strategic structure of the organisation
that affect negatively.
Rynair have different factors that is influencing the macro environment of the company
In this context Rynair is facing high turnover. National health service is affecting due to
increasing population in the country (Zahari and Romli, 2019).
SWOT Analysis and its justification on decision making
SWOT analysis is necessary to understand the strength and weakness of the company and
also help to identify the opportunities and threats of the company. Rynair is a private
organization and this report analysed the SWOT model, there are many strength and weakness of
the Rynair company. Some strength of Rynair such as the business of European market spread
in European market. Rynair also manage balance sheet and distribute good profit with
shareholders. These are the main strength of this company. In term of weakness, Rynair change
in compensation of the employees and Rynair focusing on customer experience this is a
opportunity for Rynair and price changing policies because of fuels the big threat of this
company.
This report also worked on National Health Service SWOT analysis. This is a public
company and the main strength of this company is that it expands their market all over the world

and this organization maintains good relationship with their shareholders. This organization not
able to fulfilled high demand of the customers this is the weakness of this organization. The main
opportunities of this organisation are that it also maintains their partnership with other sectors
like private and voluntary sector. Some contractors are affecting their services this is the main
threat of this organization (Ratten, Dana and Ramadani, 2017).
Strength and weaknesses interrelation with external macro factors
Strength and Weaknesses of the company are two pillars of the organisation that can
increase or decrease the growth of the business. Here are some factors that have positive and
negative impact on Rynair are as follows:
 Political Factor: These are the factors which is concerned with government stability,
taxation policy and tariffs imposed by the government. If there is increase in the
passenger tax, it will effect the sale of Rynair . Tax has been increased by UK
government more than ever on all types of journey. People will shift to other modes of
transportation and hit the profitability of the Rynair . On other hand, Company is growing
globally and keep generating profit since their establishment in the market and also have
good balance sheet and generate agreed ratio of profit.
 Economical Factor: These factors include the interest rate, inflation rate, foreign trade
policy, compensation rate, and minimum wages. A rise in the inflation rate in the
economy affects the organisation by its pricing policy and budget setup. Increase in the
price of the various product and services will leads to decrease in the sale of the
company, also effect the purchasing power of the buyers. A major change in demand and
supply model of the economy. Increasing the volume of customer leads to slowdown the
product availability and faces losses in the economy (Sousa and Rocha, 2019).
 Social Factor: These are the factors which includes shared values, belief and attitude of
the individual towards their religion and culture. This is very difficult to follow all the
culture and tradition in order to full fill the needs and wants of every individual. This
make losses in the business, when the company is working on global bases. This also
reflects the buying behaviour of of western countries, people are much interested in
holiday travelling. A report says that nine out of ten people wants to travel during
holiday, this habit of western countries, make the Rynair to earn more profit because

people are more likely to go on short distance travelling in cost effective way. The
increase in the sale of the company will contribute in the growth of the country.
 Technological Factor: these are the factor which include the innovation in the
technology and findings for new ways of operation in order to meet the current trends of
the individual. This factor will take the company at good market segment and expand
their market share with the wide verity of product and services offered to their potential
customer. These factor also includes the automation, research and development of the
technological innovation. Current generation is influenced with the internet and Airlines
can take this benefits for the company and attract the customer through social media
platform, while their travelling experience. There is the facility, where airlines can inform
to the passengers about the movie, which to be played while travelling. Furthermore
Rising technology of using mobile banking and internet banking, helps the passenger to
book the tickets in advance and make payment of their ticket for the smooth travelling
(Wirtz and Daiser,2017).
 Legal Factor: this factor includes the labour law and trade policy across the world. This
factor suggested that all the companies have to follow the labour law and trade policy
with the strict code of conduct in order to maintain the good brand image of their
company.
Impact of Both macro and micro factors on objectives and decision making
With the help of PESTLE analysis company evaluate the external factors and with the
help of SWOT analysis company evaluate the micro factors. In this report, Rynair company
analysed and evaluate both factors macro and micro factors. In macro factor, Rynair company
applied PESTLE analysis and identified that political and social factors give positive impact on
decision making as compared to the other factors. In SWOT analysis Rynair company analysed
company strength and weakness as per the market situation. Company marketing is increasing
day by day this a big strength of the company it gives positive to accomplish the company
objectives. These analysis gives positive impact on company performance and also help in
decision making process.

CONCLUSION
On the basis of this report, it is concluded that healthy business environment is necessary
for each and every organization. For this report three organizations are taken which belong to
different sectors like public, private and voluntary organization named as National health service,
Ryanair and Shelter respectively. Organizational functions are playing a crucial role and it is
responsible for smooth departmental functioning. Organizational structure is mandatory to
manager organizational environment. With the help of good organizational structure company
easily regulate all the activities. PESTLE and SWOT analysis is done for analyse and evaluate
the organization situation. Company identify strength and weakness with help of SWOT
analysis. This report analysed that political and social factors give positive impact to achieve
organizational goals also help in solving the decision making problems.

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