Understanding Business Organisation and Their Environments

This essay discusses the advantages and disadvantages of various forms of business, organizational structure, and the impact of production, human resource, and operation departments on functional management activities. It also explores the importance of positive organizational culture in achieving company goals and objectives.

MGBBT0UBN Understanding Business
Organisation
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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Understanding business organisations and their environments
INTRODUCTION
Organisational structure mainly illustrated the manner in which activities such as
coordination, allocation and supervision are duly directed towards accomplishment of
organisation vision, aim and objective (Brkić, 2020). Organisation structure have capability to
impact organisational actions and also provide a direction and foundation on which operations of
company are required to operated. With the help of having proper organisational structure
company can effectively fulfil their goals and objectives while managing work flow. Present
essay is inclusive of advantage and disadvantage of various form of business-like partnership,
sole trader, limited company etc. Along with this essay include contrast and comparison among
organisational structure. In addition to this function of production, human resource and operation
department and their impact upon functional management activities on individual as well as
company is also included in this report. Lastly organisational culture and the way in which
positive culture influences success of company is being discussed in present essay.
MAIN BODY
Business organisation is termed as a way in which business structured and that structure
assist in accomplishing goals and objective. There are various forms of business types for
example sole tradership, partnership, limited company and more (Turner, 2020). In context with
sole trader ship it is mainly set up a sole individual who have benefit of all the profits and
benefits of company. Along with this, this form of business type also has advantages in terms of
flexible and quicker decision-making in which business activities can be conducted in time
effective manner (de Silva, 2020). However major disadvantages of this type of business relies in
terms of unlimited liability and in this sole trader can face issues or difficulties to raise finance.
This business type is inclusive of examples like social media influencer, designers, marketers,
copywriters and more. In context that partnership it is a form in which two or more than
individuals come in a partnership agreement to perform business roles and responsibilities. Louis
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Vuitton and BMW. Red Bull and GoPro are some of the examples of partnership. In terms of
private limited company lawyers, accountant etc are example of this business type. It has been
evaluated that in partnership business there is less formal and legal obligation (Hester, Rogers
and Robb, 2021). Along with this in this business type partners can share losses and burdens.
This form of business is having main disadvantage in terms of high risk of disagreement, delay
in decision making and conflict among partners. Private limited company have advantages such
as a professional status and tax efficiency. However, it has been identified that limited liability
company can face rigid tax obligations and also have less privacy as compared to sole trader.
These forms of business types have different organisational structure which identifies the ways
in which activities are required to be conducted.
By evaluating tall and flat structure it has been determined that main difference that relies
between them is that, in tall structure there are distinctive sort of levels of progression within
structure of company (Khairi, 2020). While in case with flat organisational structure it has been
underlined that in this there are just predetermined number of levels of chain of hierarchy. It has
been distinguished that tall organisation structure are for the most part having various degrees of
chain of hierarchy in which range of control is fundamentally a limited and there are various
kinds of advancement opportunity. Moreover, it has been recognized that in tall hierarchical
structure there is long correspondence line which makes to more time to undertake decisions. If it
is talked about flat structure it is form of structure with having less level of hierarchy and inside
this communication is also basically short (LaBelle and Waldeck, 2020). This appropriately
make association receptive to change. Furthermore, it has been evaluated that, as per the
comparison among tall and flat organisation structure it has been stated that that in flat structure
there is wider span of control, as this structure mainly have lesser individuals to report. It drove
towards diminishing number of people they need to oversee. In any case, in this there is longer
range for data to go through various layers. It has been underlined that tall organisational
structure mainly lies in administrative control and clearness and furthermore permit close
oversight of representatives, as this construction give clear and deal line of liability and control
with advancement structure (Sharma, 2021). While as contrast with flat structure it hoists every
worker obligation inside company and further dispose of abundance level of the board layer that
aides in further developing coordination as well as communication. As per the analysis it has
been stated that, in flat structure there are not many levels between workers which helps in
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settling on progress and dynamic interaction among laborers. In this has been recognized that
McDonald's is a large-scale organisation with flat structure where the manager in each business
environment controls different workers. While in wording with tall structure main illustrations of
this is departmental store as they mainly arrange departments by specific form of products.
There are different types of departments those who perform role as responsibilities in an
organisation with an aim to achieve company objectives and goals. In this, human resource
department is for the most part capable to design, control, direct and recruit applicants to fulfil
organisation labour needs (Lee, 2020). In this human resource manager, it is having liability to
accentuate upon 3 significant aspects which is arranging, planning work and employee’s
remuneration and emphasise upon elements that will help in increasing efficiency of
organization. While as far as the production unit within company, they perform role related to
distinguishing inputs in the time of production, reduce product cost, maintain product quality and
working upon conducting cost effective production functions while maintaining products quality
(Papp, 2020). While in terms with operations department they are responsible to perform work
related to arranging and carrying out assembling plans, overseeing project, arranging, data
framework, helping in planning and creating items and administrations, overseeing stock with
the assistance of inventory network and conveying quality items and administrations to
customers while enhancing quality control. It has been evaluated that, these three units with
company perform various kinds of roles and obligations and have particular aim. Main principal
objective of these three is same which is to improve company overall productivity, effectiveness,
performance and profitability and achieve organization objectives in effective way. Moreover, it
has been investigated that there is a huge impact of these three departments operations on
individuals and organisation. In this human resource management is capable to give preparing to
workers that helps upgrading their capability to perform roles (Lee, 2021). It naturally impacts
upon company. While operations and production department oversee company product quality
by arranging and carrying out different exercises to enhance effectiveness of organisation
services and products. It helps in expanding company sales and profitability. It has been
determined that in Tesco human resource department engages in the operations of attracting
talented employees and implement effective strategies such as training to retain them various
preparing and advantages (Rye, 2020). While operations and production department of this
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respective company participate in creating and planning high quality services and products in
order to and to fulfil customer’s needs.
Organisational culture is mainly inclusive of assumptions, shared values, believes and the
way in which workers in organisation workplace are subjected to make interaction and behave
with others. For an organisation success, culture plays essential role as with the help of having
positive organisational culture employees can be motivated and directed toward accomplishment
of company goals schools in effective manner (Lestari and Juwana, 2020). Watling, C.J., Ajjawi,
R. and Bearman, M., 2020). Furthermore, it has been identified that positive organisational
culture includes elements such as strong communication which helps in overcoming issues like
conflicts and ambiguity which offers clear operational roles. Furthermore, it has been underlined
that with the assistance of positive culture organisation can maximize employee’s productivity
and performance by rewarding and motivating them. In context with Tesco with the help of
positive for healthy organisational culture company co-ordinate roles and responsibility of
employees with organisational objectives (Muriithi, 2021). Along with it has been evaluated that
positive organisational culture also facilitate Tesco to promote a healthy environment in which
employs form their roles and responsibility without facing any discriminatory practices. It helps
in motivating guiding and direct employees in an effective manner which automatically helps
company to maximize productivity and profitability in an effective way.
CONCLUSION
As per this analysis it has been concluded that, organisational structure plays important role
that helps in providing a foundation or structure to company on which organisational operations
can be conducted in a successful manner, while managing different activities accordingly. There
are different types of business such as sole trader, partnership and limited company which is
having their own advantages and disadvantages. It has been identified from this essay that
production, human resource and operation department performs different type of roles and
responsibilities with a common objective which is to enhance overall performance and
profitability of organisation. This report essay also identifies that with the help of positive culture
company can strengthen relationship with other workers and can encourage them towards higher
productivity.
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REFERENCES
Books and Journals
Brkić, S., 2020. Comparative advantages and competitiveness: Evidence from trade of Bosnia
and Herzegovina with its Main Partners. Ekonomska misao i praksa, 29(1), pp.137-155.
de Silva, C., 2020. Business organizations. In Galbraith’s Construction and Land Management
Law for Students (pp. 65-76). Routledge.
Hester, R., Rogers, A. and Robb, M., 2021. Making sense of organisational culture. In Leading
managing caring: (pp. 297-323). Routledge.
Khairi, H., 2020. MEASURING THE EFFICIENCY OF LOCAL GOVERNMENT AGENCIES
STRUCTURE: FINDING RIGHT SIZING PATTERNS. Sosiohumaniora, 22(3),
pp.289-298.
LaBelle, S. and Waldeck, J.H., 2020. 2. Organizational Types and Structures. In Strategic
Communication for Organizations (pp. 37-65). University of California Press.
Lee, J., 2020. Accelerate Culture Change Through Digital Tools. In Accelerating Organisation
Culture Change. Emerald Publishing Limited.
Lee, S.R., 2021. The Myth of the Flat Start-up: Reconsidering the Organizational Structure of
Start-ups. Available at SSRN 3835538.
Lestari, S.D. and Juwana, B., 2021. The Effect of Organisation Structure, Competency and
Innovation on Firm Performance in The Era of Industry 4.0. International Journal of
Organizational Business Excellence, 4(1), pp.1-8.
Muriithi, S.M., 2021. Organisational Culture: The Root of Sustainable Competitive Advantage.
Papp, T., 2020. The Status of the Limited Liability Company since the New Hungarian Civil
Code Came into Effect. Central European Journal of Comparative Law, 1(1), pp.147-
178.
Rye, J., 2020. What is the difference between a sole trader and a limited company?. In Setting
Up and Running a Therapy Business (pp. 132-134). Routledge.
Sharma, B., 2021. To Study the Relationship between Job Satisfaction and Organisation Culture
at Bikanervala. Journal of Advanced Research in Humanities and Social Sciences, 7(4),
pp.20-25.
Turner, P., 2020. The organisation of work and employee engagement. In Employee Engagement
in Contemporary Organizations (pp. 167-192). Palgrave Macmillan, Cham.
Vnoučková, L. and Urbancová, H., 2020. Setting organisational culture to develop potential and
innovativeness. Quality Innovation Prosperity, 24(1), pp.54-68.
Watling, C.J., Ajjawi, R. and Bearman, M., 2020. Approaching culture in medical education:
three perspectives. Medical education, 54(4), pp.289-295.
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