Understanding Business Organisation and Their Environments

This essay discusses the advantages and disadvantages of various forms of businesses and their impact on company success. It also covers the importance of organisational culture and its impact on employee performance.

Business Organisation
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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Understanding business organisations and their environments
INTRODUCTION
Organisational structure plays important role for any organisation to run business operations
in more efficient manner. This structure mainly provide details about the manner in which
certain activities are delegated to accomplish objectives and goals of company. Along with this
organisational structure duly outlines employees’ roles and responsibilities in an organisational
workplace premises (Albu, 2021). Company can operate in more effective manner and can get
benefit in terms of better communication, duplication of work, greater employee performance,
improved operating efficiency and faster decision making. In simple terms organisational
structure is a system that defines hierarchy in an organisation and identify every job function and
establish the foundation on which company is required to operate to assure future growth.
Present essay is conducted on the topic of understanding business organisation and their
environment which outlines the advantages and disadvantages of various forms of businesses.
Along with this comparison and contrast organisational structure and their impact upon company
success is also included in this report.
MAIN BODY
Business organisation define as a way in which business structure provides direction and
foundation to an organisation to fulfil overall objective. There are various forms of business in a
business environment. For example, sole tradership, partnership and private limited company can
more. In terms with sole tradership, this organisational structure is easy to setup and in this
owner have responsibility of all the losses as well as profitability. Furthermore, it has been
underlined that sole trader have significant benefit in terms of effective decision making, as in
this they are the only responsible individual to take decisions on the behalf of business. This
form of business structure can face certain difficulties in terms of issue to raise further capital.
Copywriters, designers, marketers etc are some certain examples of sole trader (Cribb, Miller and
Pope, 2019). Another form of business type is partnership in which two or more than to
individual comes together with the help of a partnership agreement to conduct business roles and
responsibilities. Louis Vuitton and BMW, Red Bull and GoPro, Spotify and Uber are some
examples of partnership. In addition, this this, private limited company include lawyers,
accountant etc. It has been evaluated that in partnership business owners have benefits in terms
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of fewer level of legal obligation. Along with this they can share losses. Partnership is having
major disadvantages in terms of high level of conflicts and delay in the decision-making process
as is this consent of all the partners are require to finalize the actual decision. Furthermore, it has
been evaluated that private limited company have significant advantages such as professional
status tax efficiency and more. However, this form of business can face difficulties in the form of
project tax regulation, lesser privacy etc. All the forms of business types are required to
implement organisational structure as per their roles and responsibilities in order to accomplish
overall objectives in effective manner.
Tall or hierarchical structure is inclusive of number of leaders as well as layers of
management. Organisation those who have this structure mainly take use of top-down approach
along with the long chain of command. In this form management is basically segregated into
number of layers with executives on top and normal employees on the bottom. In this structure
there are a number of managers and in this every manager is having responsibility to manage
small group of workers. While in terms with flat structure it is a form of organisational structure
in which there are only few layers of management (de Silva, 2020). Organisations those who
have flat structure in the workplace promises have wider span of control with more subordinates.
It has been identified that in this form of structural there is basically short chain of command.
Furthermore, it has been evaluated flat organisational structure have lesser number layers among
employees and top management. In this communication within company is faster, less prone to
mistake and easier as comparatively to tall structure, in which communication is basically long
as in this they go through number of layers to arrive at final decisions. In addition to this that has
been identified that comparatively to tall structure companies with having flat structure can
effectively react to changes in rapid manner and can implement the same in less time (Deards,
2019). However, it has been identified that in terms with tall structure companies with this
structure have clarity and managerial control. This structure offers distinct layer with clear lines
of responsibility promotion structure and control this has been evaluated that Tesco is having tall
structure as this company is a large-scale organisation and have multiple layers within its
hierarchy. While in terms with flat structure Valve is one of the notable example of organisations
which is having flat structure organisational structure.
An organisational is mainly consists of various forms of departments who are responsible
to conduct number of functions, roles and responsibilities with an aim to accomplish overall
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objective and motive of company. In context to the Human resource department in an
organisation, this unit is responsible to develop a positive work climate while evaluating
employee’s performance, providing training and development courses, implement occupational
health and safety standards, recruit talented potential and skilled employees, develop employer-
employee relationship, formulate compensation and benefits strategies and more (Meng and
Berger, 2019). This department is one of the most important departmental units within an
organisation which not only helps in developing a positive work culture but also allow company
to retain talented employees for longer period of time. While if it is talked about production
department, this unit with company is responsible to identify inputs, schedule production,
minimise production cost, ensure product quality, make improvement in existing products and
offer high quality products and services to consumers and cost-effective manner. In terms with
the operation department, this unit within company is responsible to plan and implement
manufacturing plants, manage project, help organisation to design and develop services and
products, manage inventory with the help of supply chain, manage in delivery to consumers in
time effective manner, optimise quality control etc. All these departments within company plays
key essential role in enhancing overall performance, sales, productivity and profitability of
company. In terms with Tesco it has been evaluated that within company human resource
department assures that proper staffing is being done and employees are being provided with
continuous training and development opportunities. This department within company also
motivate workers with the help of effective compensation and benefits strategies, along with
maintaining proper labour law compliance. While production department of Tesco continuously
engages in the role of selecting effective production process and conduct proper production
planning control and quality and cost control measures in order to provide high quality products
to consumers (Musweu, 2021). While operation departments within company develop strong
relationship with suppliers and make sure that all the products and services are being delivered to
consumers in time effective manner.
Organisational culture mainly defined as underlying assumptions, believes, ways and
values of interacting that significantly contributes in developing organisation environment. A
good organisational culture is mainly inclusive of company expectations, philosophy,
experiences and values that provide guidance to every member (Osunnuga, 2020). It has been
identified that culture is mainly based upon some attitudes, believes and unwritten and written
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rules. Organisational culture has capability to impact upon the way in which individual and
groups interact with each other, stakeholders and with clients. It is important for business leaders
to emphasize upon creating a good organisational culture with strong communication practices in
order to duly develop strong relationship with workers. In context with Tesco, with the
implementation of positive organisational culture Tesco leaders appreciate hard work of
employers and make sure that every employee is satisfied (Paais and PATTIRUHU, 2020). For
this leader treat their workers in effective manner. For example, by appreciating them in many
forms such as promotion, a note of thanks, etc. Along with this they also maintain trust through
which employees can express themselves in effective manner. It helps in enhancing and
motivating employee’s talent, skills and ideas which helps Tesco in increasing its overall
productivity and profitability. Tesco develops positive organisational culture with the help of
teamwork which include communication, collaboration and respect between team members (Top
and Sungur, 2019). It lead towards innovation. It helps company to satisfy consumers effective
manner while building a culture of positivity.
CONCLUSION
According to the above essay it has been concluded that organisational structure relates and
aligns different aspects of organisation so that company can achieve maximum level of
performance. This structure has greater impact upon the manner in which company conduct
their objectives and strategies. There are different types of business those who perform
operations with distinct roles and responsibility. It is essential for an individual to have proper
understanding of the business form in order to perform seamless operations. This essay identifies
that organisational culture strengthen and improve relationship of employees with company
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through which overall goals and objectives can be fulfilled in effective manner. With positive
organisational culture company can assure higher profitability and growth opportunities in
future.
REFERENCES
Books and Journals
Albu, A., 2021. The organisation of industry. In Democratic Socialism in Britain (pp. 121-142).
Routledge.
Cribb, J., Miller, H. and Pope, T., 2019. Who are business owners and what are they doing? (No.
R158). IFS Report.
de Silva, C., 2020. Business organizations. In Galbraith’s Construction and Land Management
Law for Students (pp. 65-76). Routledge.
Deards, E., 2019. Practice Notes on Partnership Law. Routledge-Cavendish.
Harel, R., Schwartz, D. and Kaufmann, D., 2020. Organizational culture processes for promoting
innovation in small businesses. EuroMed Journal of Business.
Isensee, C., Teuteberg, F., Griese, K.M. and Topi, C., 2020. The relationship between
organizational culture, sustainability, and digitalization in SMEs: A systematic
review. Journal of Cleaner Production, p.122944.
Meng, J. and Berger, B.K., 2019. The impact of organizational culture and leadership
performance on PR professionals’ job satisfaction: Testing the joint mediating effects of
engagement and trust. Public Relations Review, 45(1), pp.64-75.
Musweu, F.K., 2021. The Importance of including Business Entities in the Introduction of any
Basic Accounting Programme. International Journal of Business Management Insight
& Transformations [ISSN: 2581-4176 (online)], 5(1).
Osunnuga, O., 2020. A survey of the management, organisation, structure, content and columns
of the contemporary Yorùbá newspaper. In African Language Media (pp. 156-166).
Routledge.
Paais, M. and PATTIRUHU, J.R., 2020. Effect of motivation, leadership, and organizational
culture on satisfaction and employee performance. The Journal of Asian Finance,
Economics, and Business, 7(8), pp.577-588.
Top, M. and Sungur, C., 2019. Opinions and evaluations of stakeholders in the implementation
of the public‐private partnership (PPP) model in integrated health campuses (city
hospitals) in Turkey. The International journal of health planning and
management, 34(1), pp.e241-e263.
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