Understanding Business Organisation

This essay covers the different functions of business and their impact on management activities, compares and contrasts organizational structures, and defines organizational culture and its impact on the success of an organization.

UNDERSTANDING
BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Advantages and disadvantages of various types of business......................................................1
TASK 2............................................................................................................................................2
Compare and contrast the organisational structure.....................................................................2
TASK 3 ...........................................................................................................................................2
Explains different type of business functions and their impact on business...............................2
TASK 4............................................................................................................................................3
Define organisational culture and how positive culture impacts on the success of organisation.
.....................................................................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business is the separate legal entity which is engaging in production, selling product and
any activity which is entitled to generate higher profits. Every There are different type of
business forms such as sole trader, partnership and limited company which is running in the
market and they used different organisation structure on the basis of their size and function. (Ray
and et. al., 2020). Different organisational structure are flat, hierarchical and divisional. This
Essay includes the various examples of industries which are ensuring higher profits and growth
in their business. This report will cover the different functions of business ans their impact on
the management activities and it will compare and contract the organisational structure.
TASK 1
Advantages and disadvantages of various types of business.
Sole trader are the individual who manage and own their business by their own and they
as only responsible for all the profits and looses within the venture and also liable to pay all the
taxes which is being imposed by the government. Hairs stylist and plumber are the best example
for sole trader(Norese And et. al., 2021). The advantage of sole trader is that they can setup their
ensure with easy approach they are opening up on small segment and all the profits is being
retained for the owner itself as single person is involving in the business and their success.
Disadvantage fr the sole trader is, they are having unlimited liabilities and can be difficult to
procure and raise the funds for their business operations and their expansion.
Partnership is the agreement in which tow or more individual are entitled to run the
business and share their profits&looses for the same. They are also liable to all the taxes which is
being imposed by the government under partnership act. There must be transparency among the
partners related to the capital and income. Deciduous is the best example for the partnership
organisation which are giving information for the management services. The advantage of
partnership is that all the partners share their profits and looses on agreed basis. Due to which
they tends to share the burden of all the looses together which is the disadvantage for the
business.
Limited company is the general form of incorporation which limits the amount of
liability which is undertaken by the shareholder's of the company(Maroun, 2020). It is the main
consideration of the business or refers to the legal structure which ensures that the liability of the
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firm is limited to their stake. Morrisons is best example from the retail industry, It is the leading
company which is dealing groceries and food items. The advantage of limited company is there
is no minimal capital and also having separate legal entity in the business. The disadvantage of
limited company that they restricts the transfer ability of shares and they can not issue prospectus
to public.
TASK 2
Compare and contrast the organisational structure.
Organisational structure is defined as the form in which the business is operating their
functions and ensuring higher profits. They also ensures the higher level of profitability by
dividing he whole task into small groups of people by analysing the skills and abilities of the
employees so that all the work can be effectively accomplished.
Illustration 1: Organizational Structure, 2021
Flat organisational structure is defined as an entity where top management is in the direct
contact with the front line employees who are engaging in their business. In this structure, the
leader is decentralised as there is no role and duties of middle level management. Google is the
best example as they are dealing in the flat organisational structure in which they divide the work
by forming group so the employees in which employees can directly contact to the top level
management.
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Hierarchical organisational structure is known as the tall structure in which an autocratic
leader form the departments and communication is being pass from the top level managements
to the lower level employees(Lee, 2021). They tends to follow the actions of their seniors and
can not give their suggestions and feedbacks to the seniors. Amazon is best example for the
organisation as they are using hierarchical organisational structure in which all the employees are
liable to follow the assigned duties and orders of their seniors.
TASK 3
Explains different type of business functions and their impact on business.
An organisation can only be operated with the effective execution of the various function
within the company and the deserving candidate is performing their job in order to get better
results in it. For instance, Morrisons is the leading company which is operating their business on
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Illustration 2: Hierarchical organisation structure,2021

larger scale and there are different functions of management which is being operated by the
business are given.
Human resource management is the department which is concern for hiring the
individual by analysing their skills and abilities that can be best suited in the given job role.
Basically responsible for recruitment and selection within the organisation and also their fair
salary, leaves, bonus and many more y which they can ensure positive working environment
which can leads to growth and success of the Morrisons and they can further expand their
operations.
Production is the unit which is responsible for manufacturing goods an t is the largest
department of any organisation as they offers goods for the final sale tor the consumer. T
involves mechanics, machine setup specialists and employees so that they can effectively run the
business in an appropriate manner. In context to Morrisons, they are operating their business on
larger scale and they tends to contribute the share of total profitability and take the organisation
to the higher level of growth and success.
Operations department ensure that production process is being completed form the start
to finish and they need to line up with their functions and goals of the other departments within
the organisation (Goni And et. al.,2021). It includes purchase of goods, hiring of the training
workers and location& layout of the factory. In context to Morrisons, they are operating their
business in the large market by which they are ensuring the higher profits and also expand their
market to the new market segments.
TASK 4
Define organisational culture and how positive culture impacts on the success of organisation.
A great organisational culture is the key of developing traits which leads to business
success. It is the collection of values, practices and expectations that guide and inform the
actions of team members. Culture can be created through consistent and natural behaviour of the
CEO of the company when they are responding to specific crisis in the business that how they
accept the emerging demand of the customer and how they corrects an employee who makes a
mistake in an organisation.
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It is stated with the report that 77% of the workers considered the organisational culture
before applying to an job and half of the employees leave their job for a low paying
opportunities in an organisation by which they can have the better culture(Attar and Abdul-
Kareem, 2020). This is the top indicators for the employees by which they can effectively meet
the expectations. This becomes the reasons for the 65% of the employees stay in their job due to
good working culture.
For instance, when the Morrisons is having positive working culture within the
operations so hat they can effectively meet the expectations of the customers and retain the
young talent within the organisation and also they tends to improve and enhance the productivity
of the operations by which they will sale more gods in the target market. Positive culture make
the employees advocated as they do not hesitate to explain their prospective to the seniors and
give valuable suggestions to the manager.
CONCLUSION
It is concluded from the above report that when the people is conducting something with
the consideration of earning product then this become the stage when the individual or the group
of person enter in the business entity. There are different types of business such as sole trader,
limited company and partnership which is being chosen by the organisation on the basis of their
size and functions performed. Flat organisational structure ensure the flow of communication
directly to the manager and they can give their suggestions to them. On other hand, tall
organisational structure ensures the autocratic approach in which all the major decisions is taken
by the senior authority and employees needs to follow the actions of their seniors and the certain
instructions given by them.
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REFERENCES
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Goni, F.A. And et. al.,2021. Sustainable business model: A review and framework
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