Understanding Business Organisation Essay

This essay discusses different types of business organizations and their structures, business functions, and organizational culture. It also covers the advantages and disadvantages of sole trader, partnership, and limited company.

Understanding Business
Organisation Essay
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
“Understanding business organisations and their environments”..........................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
In order to be successful in an industry it is essential for an individual to understand
different types of business organisation and their structure along the manner in which they
perform their roles and responsibility to accomplish objectives (Gošnik and Kavčič, 2021). It
essential to have systematic organisational structure as with the understanding of this
accomplishment of overall objective can be done in an effective manner. Present report is
inclusive of the discussion on sole trader, partnership and limited company along with their
advantages and disadvantages. In addition to this different business functions along with their
impact on organisation and people within organisations is also discussed in this essay.
Furthermore essay include discussion on organisational culture and the manner in which positive
culture impact upon organisation success.
MAIN BODY
“Understanding business organisations and their environments”
Sole trader or sole proprietor is mainly defined as an unincorporated business which is
owned and managed by a single individual. In this individual is responsible to pay personal
income taxes and known as individual entrepreneur or sole trader. The main advantage is of sole
trader is that they are responsible for all the profit earned by the entity. Along with this they are
not obliged to pay taxes and have benefit in terms of low start-up cost. While disadvantages of
sole trader include unlimited liability, responsibility to make day to day decisions and difficulties
in raising capital. Partnership is mainly defined as a state of being a partner or partners a
partnership is mainly defined as system in which business partners are agreed to co-operate for
mutual interest. In this partnership in a partnership agreement can be interest based organisation,
individual businesses extra. The main advantages of partnership is that it allow to start a business
with someone else without having any certain form of formalities. Along with this there is few
legal formality and it is easy to establish. While main disadvantages of partnership is start in this
there is uncertainty in which partnership business suffer from in stability. Along with this it has
been identified that every partner is liable for the share of partnership (Kumar and Afreen, 2021).
Along with this partnership disagreement is also the major disadvantage. Limited company is
mainly defined as a privately owned organisation in which owners are duly legally responsible
for their taxes only to the extent of the amount of capital which they have invested. Furthermore,
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it has been underlined that limited liability company main limited by shares or by guarantee the
main advantages of limited liability is that it separate legal entity and have capacity to sue and be
sued. Along with there is free and easy drawings for the ability of share. While disadvantages of
limited company include complex registration process, compliance formality and personal
liability.
Organisational structure is mainly termed as a system which outlines the manner in which
certain activities are required to be directed as to duly accomplish organisational goals. There are
mainly four forms of organisational structure which is functional, divisional, flatarchy and
matrix structure. In addition to this it has been identified that organisational structure duly
represent various levels of management in addition with the positions as well as responsibility of
the responsible individual within an organisation. In terms with divisional, it is the best structure
as this form of structure work in which duties are assigned to the group of people and there are
different ways of departmental association. In context with matrix structure there are individual
from different departments and products have their specific nature as per their project. In this
people are involved in which they face different form of situation and overcome them with the
help of their skills (MBAKA and ISIRAMEN, 2021). With functional structure they are
consistency in functional decision making and value is added within the areas of functional
expertise. In terms with flatarchy organisation structure this is a structure common with start up
personal company. In this employees are allowed from various levels to make decision within
the organisation thus according to the above analysis it has been identified that there are different
type of organisational structure which is functional divisional, flatarchy and matrix structure. All
these structure have different hierarchical structure through which they accomplish
organisational objectives in a well defined and effective manner.
In an organisation there are different types of business functions such as human resource
management, production, operations etc. All these have different types of functions and
responsibility and have significant impact of their functional management activities on
organisation along with the people in organisation. It has been identified that within
organisations like Sainsbury, Tesco, Asda, extra. Human Resource Department have different
type of functions which include human resource planning, recruitment and selection,
performance management, learning and development, career planning, health and safety,
personal well-being, providing reward to employees and administrative responsibilities. While
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on the other hand in terms with production function in organisations like Tesco, Marks and
Spencer extra production functions engage in the process of creating the finished product that
company is selling in order to earn profit. Within these organisations production function is
inclusive of turning inputs into finished product with the help of machine setup, maintenance,
operating machines etc. While on the other hand in terms with operations business functions
organisations like Tesco, Sainsbury extra operation business function include planning and
implementing manufacturing plants, managing process, managing inventory to the supply chain,
quality control etc (Parkin, Arnell and Ward, 2021). It has been identified that with the help of
these types of business functions of human resource management production and operations have
positive impact on functional management activities on different organisation. Along with this
business function significant impact employees at it increases the capability to perform different
type of roles and contribute themselves in the success of organisation which enhances overall
growth and profitability of company.
Organisational culture is defined as the manner in which individuals in which organisation is
required to behave in organisational. Culture is mainly inclusive of shared value and believe that
has been established by leaders in organisation and communicated and enforced with the help of
various methods. In order to be a successful organisation it is essential for the company to have
positive organisational culture, as it will help company to communicate value expectation and
practice is to work organisation in a complete overall goals in an effective manner. Different type
of organisations like Tesco, Asda etc is having positive organisational culture in which
employees are engaged in the decision-making process and their decision and ideas are respected
along with this leader within these organisations build trust and encourage team work with the
help of mutual communication, respect and collaboration. These practices helps the leading
organisation to have a positive organisational culture which plays important role in successful
accomplishment of overall goals. In addition to this it has been identified that positive culture
impact on the success of organisation in a positive manner as positive organisational culture is
inclusive of trust, respect engagement of employees communication, respecting employees ideas.
In addition to this it has been underlined that workplace which is inclusive of positive
organisational culture helps in improving teamwork, increases moral enhanced productivity as
well as efficiency (Pham, 2021). In addition to this has been identified that leading organisations
like the enquiry and Tesco retain workers with the help of positive organisational culture it not
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only enhances job satisfaction collaboration and performance of employees but also help in
reducing stress with workers. With the help of positive organisational culture company
encourages collaboration and strength and productivity in an efficient manner which helps in
improving overall roles and responsibility in effective manner.
CONCLUSION
Thus, from the above-mentioned analysis it has been concluded that there are different type
of business organisations those were performing their roles and responsibility in business
environment. These business sector includes sole trader, partnership and limited company which
have different type of roles and responsibilities along with legal structure. There are different
types of organisational structure in which different types of hierarchical structure is being
followed. It has been identified that human resource management, production operations are
different business functions which have positive impact upon functional management activities
as well as employees within the organisation. All these departments significantly contribute in
the growth and success of organisation. It has been identified that organisational culture plays
important role as with the help of positive culture employees can perform their roles and
responsibility with a positive attitude which helps in answering overall business growth and
profitability.
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REFERENCES
Books and Journals
Gošnik, D. and Kavčič, K., 2021. Analysis of Selected Aspects of an Organisation: The
Organisation as an Instrument, an Interest Group and as a Process. Managing Global
Transitions, 19(2).
Kumar, S. and Afreen, S., 2021. Understanding perceptions of faculty and students about
sustainability in Indian business management schools. International Journal of Indian
Culture and Business Management, 22(3), pp.383-400.
MBAKA, N. and ISIRAMEN, O.M., 2021. THE CHANGING ROLE OF AN EXPLORATORY
RESEARCH IN MODERN ORGANISATION. GPH-International Journal of Business
Management (IJBM), 4(12), pp.27-36.
Parkin, S., Arnell, S. and Ward, J., 2021, October. Change that Respects Business Expertise:
Stories as Prompts for a Conversation about Organisation Security. In New Security
Paradigms Workshop (pp. 28-42).
Pham, N., 2021. Understanding an Enterprise Architect’s Business Capability Modelling
Practice Through the Lens of Actor-Network Theory (Doctoral dissertation, Auckland
University of Technology).
Verhoef, G., 2021. Business and Social Crisis in Africa: by Antoinette Handley, Cambridge
University Press, Cambridge, 2020, x+ 192 pp., bibliography, index.
Wang, Y., Skeete, J.P. and Owusu, G., 2021. Understanding the implications of artificial
intelligence on field service operations: a case study of BT. Production Planning &
Control, pp.1-17.
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