Understanding Business Organisation - Essay

This essay discusses the different forms of business organisations, comparison between tall and flat structure, human resource management, production management, operations management and organisational culture.

Business Organisation
Table of Contents
Introduction 1
Main Body 1
Task 1 1
Sole Trader 1
Partnership 2
Limited Company 2
Task 2 2
Compare and contrast the tall and flat structure of an organization 2
Task 3 3
Human resource management 3
Productions 3
Operations 3
Task 4 4
Organizational culture 4
Conclusion 4
References 6

Introduction
Business organisation can be defined as an entity which is formulated with the motive of
carrying on commercial Enterprise. Business organisations run on some systems which are
governed by law of contract and exchange along with the property rights and incorporation
(Yates, 2018). The main purpose of such organisations is to maximize their profits for the person
who owns the company or stakeholders who are involved with an organisation either externally
or internally and also while maintaining the corporate social responsibility as well (Nickels,
McHugh and McHugh, 2019). Therefore the following discussion is based on the different forms of
business organisations which includes sole trader, partnership and corporations and limited
company. Their explanations, advantages and disadvantages are discussed. discussions are
also made on the comparison and contrasting between the tall and flat structure of an
organisation. Discussion on human resource Management, production management and
operations management are also made along with their impact on organisational performance
and functioning. Moreover, organisational culture is also discussed along with its positive impact
on the company with conclusion.
Main Body
Task 1
Sole Trader
Such organisations are owned by a single person who is responsible for the day-to-day
activities in order to run the business. These individuals own all the assets and profits generated
by the business. Advantages of a sole trader are such that it is the easiest and cost efficient
form of business. Such business sense is completely in the control of the owner along with the
decision making as well. The business is easy to dissolve also if desired. Disadvantages of a
sole trader are such that the owner is the only responsible for any death against the business.
One has to put their personal savings and consumer loans for the funds to run the business. It is
very difficult for the owner to find the talented employees because employees also expect
something good from the business (Foss, 2020). For example, Swire, Pentland group and many more.
Partnership
Such organisations are owned by multiple individuals to run a single business. initial
capital and operating capital along with the profits and revenues are shared by the people who
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are involved in the business. Advantages of partnership are such that it is easy to establish
along with the easy investment. It is easy to raise funds with more than one owner. Multiple
skills and talents producers in new and innovative ideas to run the business. Disadvantages of
partnership are such that profits are shared among all the partners. Decisions are also shared
which results in disagreements. Business can also terminate if any partner withdraws from the
business or a death of a partner (Child, 2020). For example, Twitter, Google and many more.
Limited Company
Such an organisation is chartered by a state in which it is headquartered. which means
that the business has a separate and unique entity apart from the owner and other stakeholders
of the business. Advantages of corporation and limited liability are such that shareholders are
having the limited liability with the judgement against the corporation. Shareholders will be
accountable for any investment in stock of the company. Businesses can also raise additional
finance by selling the stock. Disadvantages of corporation and limited liability are such that it is
a time consuming and costly process. such organisations are monitored by the federal or some
local agencies with more paperwork and regulations. It results in higher overall Taxes (Steers,
2019). For example, HSBC holdings, TESCO and many more.
Task 2
Compare and contrast the tall and flat structure of an organization
Tall structures consist of multiple levels of hierarchy whereas flat structures consist of a
limited number of levels of hierarchy. Tall structure has a narrow span of control whereas flat
structure has a wide span of control (Chen and Roberts, 2018). Tall structure is time consuming in
decision making because of involvement of multiple levels of individuals whereas flat structure
is a time saving process in decision making due to the limited number of levels along with the
white span of control (Augier and Teece, 2018). Tall structure is expensive in nature because
multiple layers of staff involvement is available in this type of structure whereas flat structure is
cost efficient as compared to tall structure because of the low number of levels involved in it.
Tall structure provides the large number of opportunities for promotion to the staff working in
the organisation whereas flat structure provides the limited number of opportunities to the staff
working in the organisation (Foss and Saebi, 2018).
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Task 3
Human resource management
Human resource Management can be defined as the employee management in an
effective and efficient manner in order to gain the competitive advantage. It is a strategic
approach which supports maximizing the employee performance as per the goals and
objectives of the organisation (Follett, 2020). Its functions include recruitment and selection,
training and development, compensation and reward, performance appraisal and exit
interviews. It benefits the organisations and employees to have smooth functioning within the
company. It helps in employee retention and also helps in increasing the productivity of the
company (Bush and Miller, 2019). For example, Marks and Spencer, Royal dutch Shell and many more.
Productions
Production management can be defined as a planning and controlling of the industrial
processes to have smooth manufacturing and production areas with an organisation. It helps
the organisation to accomplish the sales and revenue business objectives by producing the
goods and services according to the demands of the customers. It ultimately brings profits to the
company. It brings customer satisfaction and an increase in productivity. It basically includes the
logistics and inventory management as well so that the waste management can be performed
by converting the raw materials into finished products in a more effective and efficient manner
(Campuzano and Seteroff, 2020). For example, BP, Diageo and many more.
Operations
Operations management can be defined as the area of Management which is associated
with the designing and controlling of the logistics and production management. It includes the
total quality management and just in time management as well. Sustainability management is
also part of operations management (Talib, 2019). It helps businesses in managing and handling
the entire process of producing goods and services to be after sales services to the customers.
it has a positive impact on the organisational performance if such strategic processes are done
in a systematic manner (Schalock, Verdugo and van Loon, 2018). For example, Rio Tinto, Reckitt
Benckiser and many more.
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Task 4
Organizational culture
Organisational culture can be defined as the combination and collection of different
values and expectations along with the practices and jobs which guides the employees to act
and make decisions within the company. Each and every employee has different cultures and
backgrounds in terms of education and beliefs. Therefore culture and diversity management is
an important part of organisational culture so that it can be handled in an effective and efficient
manner (Dani and Gandhi, 2021). Organisational culture has a positive impact on the organisation
because it brings different types of talents towards the organisation and new innovative ideas to
perform job responsibilities. This increases the performance of the organisation and hence
productivity as well. Moreover, it helps in the increment of employee engagement with the help
of formal and informal communication flow within the organisation. It also supports recruitment
of employee turnover and employee retention with strong brand identity in the marketplace. It
assists in elevating the productivity and transformational power so that top performance can be
identified and rewarded accordingly. It aids in the effective onboarding and healthy team
environment. All these are the positive impacts on an organisation and its organisational culture
because it defines the entire working environment within the company which results in the
positive attitude among employees and the performances (Hernes, 2021).
Conclusion
It is concluded that business organisation is an important concept to learn and study so
that its applications can be applied in real world organisations. This is because understanding
about the structure of Business and its various types of functions are important to run any
business in a successful manner. This is the reason being to study in depth about the business
organisations and its environment associated with different industries in the marketplace.
Therefore it is important to analyse the different types of organisations such as sole trader,
partnership and limited company along with its advantages and disadvantages. It is essential to
examine the comparison and contrast between the tall and flat structure of an organisation. It is
necessary to determine the different functioning of the organisation such as human resource
management, production management and operations management along with its impact on the
organisation. It is significant to gain the knowledge about organisational structure so that its
positive impact on the business can be assessed. hence this report covers all such areas in
order to better understand the conception of business organisation.
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References
Books and Journals
Nickels, W.G., McHugh, J.M. and McHugh, S.M., 2019. Understanding Business 9th ed.
Foss, N.J., 2020. Understanding business systems: an essay on the economics and sociology of
economic organization. Institut for Industriøkonomi og Virksomhedsstrategi, Handelshøjskolen i
København.
Augier, M. and Teece, D.J., 2018. Understanding complex organization: the role of know-how, internal
structure, and human behavior in the evolution of capabilities. Industrial and Corporate Change,
15(2), pp.395-416.
Child, J., 2020. Predicting and understanding organization structure. Administrative science quarterly,
pp.168-185.
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Steers, R.M., 2019. When is an organization effective? A process approach to understanding
effectiveness. Organizational Dynamics, 5(2), pp.50-63.
Yates, J., 2018. Understanding historical methods in organization studies. Organizations in time: History,
theory, methods, pp.265-283.
Foss, N.J. and Saebi, T., 2018. Business models and business model innovation: Bringing organization
into the discussion.
Chen, J.C. and Roberts, R.W., 2018. Toward a more coherent understanding of the organization–society
relationship: A theoretical consideration for social and environmental accounting research.
Journal of business ethics, 97(4), pp.651-665.
Bush, L. and Miller, B.M., 2019. US student-run agencies: Organization, attributes and adviser
perceptions of student learning outcomes. Public Relations Review, 37(5), pp.485-491.
Follett, M.P., 2020. Freedom and co-ordination (RLE: Organizations): lectures in business organization.
Routledge.
Campuzano, L.G. and Seteroff, S.S., 2020. A new approach to a spiritual business organization and
employee satisfaction. Available at SSRN 1553426.
Schalock, R.L., Verdugo, M.A. and van Loon, J., 2018. Understanding organization transformation in
evaluation and program planning. Evaluation and Program Planning, 67, pp.53-60.
Talib, F., 2019. An overview of total quality management: understanding the fundamentals in service
organization. Talib, F.(2013),“An overview of total quality management: understanding the
fundamentals in service organization”, International Journal of Advanced Quality Management,
1(1), pp.1-20.
Hernes, T., 2021. Understanding organization as process: Theory for a tangled world. Routledge.
Dani, M.V. and Gandhi, A.V., 2021. Understanding the drivers of innovation in an organization: a literature
review. International Journal of Innovation Science.
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