Understanding Business Organisation and Organisational Culture

Understanding Business
Organisation

INTRODUCTION
A business is referred to an activity which involves buying or selling of a particular
commodity or service with a primary motive to acquire revenues and profits in return of the
same . There are numerous forms of businesses which can be explored and opted by an
individual who is willing to set up a business venture (Business, 2021). The respective essay
various forms of business institutions in consideration with pros and cons of the same. It
demonstrate understanding about organisational structure and facilitates comparison between
tall and flat organisational structure. Moreover, the essay explains several types of business
functions as well as denotes the significance of organisational culture and its contribution
within the success of a business firm.
MAIN BODY
A business which is owned, manage, control and operated by a single individual is referred to
sole proprietorship. It is a form of business firm wherein all the profits as well as liabilities
are neared by the sole owner of the business (Robison, 2021). It is easy to form, facilitates
rapid decision making and provides flexibility of work to the owner of the business.
However, lack of capital, unlimited liability as well as less and rigid scope for future
expansion can be characterised as few of the disadvantages provided by the specific form of
business.Partnership can be termed as a form of business organisation wherein two or more
individuals come together in order to run a business. Uber and Spotify are prominent example
for partnership. Partnership facilitates the business partners to share the roles and
responsibilities of the business functions which in turn reduces the burden of the same
(Partnership,2021). It also contributes to better decision making as new perspectives and
mindsets are collaborated together. It can be said that the higher the number of partners, the
more capital can be invested within the business. But, there are certain cons related to the
concern form of business as well. For instance, higher degree of conflicts, less control over
the business operations and lack of stability are few of the disadvantages which may be
encountered while working in a partnership form of business. A company can be defined as a
separate legal entity which is formulated in order to operate and execute commercial business
practices. For example, AstraZeneca PLC is a company in United Kingdom. A company
facilitates limited liability to its owners and members, provide perpetual succession and
facilitate transferability of shares to the general public. In addition to this, there are certain

disadvantages related to the same as well. There are several privacy concerns related to the
formation of a company, it promotes lack of personal interest which may be conflicting at
times. Moreover, in order to form a company, the owner needs to go through a series of legal
obligation which is highly time consuming and costly as well.
The design and formulation of specific system which highlights upon the manner in which
workplace activities and operations are carried out on a day to day basis can be termed as an
organisational structure of a business institution (Lim and Moon, 2021). Organisational
structure is a significant component for a business as it helps the same to maintain a smooth
flow of operation and promote higher productivity of work. There are basically two types of
organisational structures which are most commonly followed by business enterprises i.e. tall
and flat organisational structure. The major point of differentiation between tall and flat
organisational structure can be characterised as the fact that tall organisational structure
consists of a higher level of hierarchical standard whereas flat organisational structure
follows a very simple and less number of hierarchical chain (Osterrieder, 2021). The standard
and degree of control within tall structure is less in comparison to flat structure. It can be said
that the decision making process is very time consuming and complicated when it comes to
tall organisational structure. Whereas, flat organisational structure serves quick decision
making process. The famous gaming company valve follows a flat organisational structure.
The maintenance of tall organisational structures is costly as compared to the flat one. The
reason for the same can be stated as the number of employees and resources required to lead
the structure. Tesco is a global enterprise operating worldwide. The respective firm follows
tall organisational structure. It is necessary for a business enterprise to select the most viable
form of organisational structure as per their work operations in order to acquire massive
benefits through the implementation of the same. A good and competent organisational
structure tends to elevate the efficiency within work practices (Bisson, et.al, 2022) .It
enhances the standard of communication among different levels of department. In addition to
this, organisational structure also impact upon the enhancement of employee productivity and
effectiveness in a work related context.
Business functions can be characterised as the core operations of a business institution which
needs to be performed in an appropriate and considerable manner so as to achieve the