Understanding Business Organisation

This article discusses the benefits and drawbacks of different types of businesses, such as partnership, sole trader, and limited liability company. It also compares and contrasts tall and flat organisational structures, discusses various business functions, and defines organisational culture and its impact on success. The case study of Premier Inn is used throughout the article.

Understanding Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Types of business.........................................................................................................................3
Organisational Structure:.............................................................................................................4
Discuss different business functions............................................................................................5
Define organisational culture and explain how positive culture impacts on the success of
organisation..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8
Books and Journal........................................................................................................................8

INTRODUCTION
A business organisation is a crucial institution that assists in the execution of various
actions that result in the production of commodity. It encompasses all of the natural, commercial,
and industrial components, as well as the rights and working obligations that go along with them.
Partnership, sole proprietorship, corporation, and Limited Liability Company are the four
different forms of business organisations. It used to be concerned with and covered by vast
sectors and working areas through which it developed its integration and methodical structure.
The organisation chosen for this article is Premier Inn, a premium hotel with several branches
and around 700 hotels globally with 50,000 rooms, the most of which are located in the United
Kingdom (Babich and Birge, 2020). It is a multi-national hotel that provides amenities such as
lodging, food, and drinks. This essay will discuss the benefits and drawbacks of various
businesses, as well as a comparison and contrast of organisational structures and various
company functions that affect business management. In addition, it will address organisational
culture and industrial practise.
MAIN BODY
Types of business
Partnership: A partnership is a company organisation in which more than two persons share
duties, earnings, losses, capital contributions, and decision-making authority. Fox Hill Manor,
for example, is a partnership hotel.
Partnerships provide several advantages, including the ability to generate and infuse
additional capital into a firm, the ability to manage work-life balance, and the ability to save
money while expanding business prospects.
Disadvantage: The disadvantage include difficulties with future sales, a lack of stability,
and a loss of autonomy because neither partner has complete authority to operate the firm or, in
the hotel sector, to handle all of the food and general amenities on their own.

Sole trader: Another type of business is the lone trader, which consists of a single owner who is
solely responsible for the operation of the company. They can fund it with their own money or
borrow money from banks or friends.
Advantage: The benefits of a sole trader firm include the ease with which they may start or set
up, the fact that all of the profit they generate goes to them, and the fact that they have complete
control over their decision-making. Verdant Leisure, for example, is a small-scale hospitality
business.
Disadvantage: The main drawbacks are that it bears limitless responsibility, that a single
owner's duty is overburdened, and that getting funding for this industry is difficult (Jayasinghe,
Rameezdeen and Chileshe, 2019).
A limited liability company: (LLC) is a hybrid private company structure that is used to
administer all general partnerships and corporations in the commercial world. It aids in providing
a general oversight over all businesses with minimal responsibility in commercial practises.
Consider the Holiday Inn.
Advantage: The benefits of this business include flexibility in income distribution, the ability to
simply regulate members, and a simple structure.
Disadvantages: include the fact that it does not operate indefinitely, that it has trouble obtaining
cash and resources, and that it causes confusion in all states.
Organisational Structure:
A flat organisational structure is one in which all levels of management are in direct
contact with employees and working groups, and there is open communication between them all.
It features a decentralised leadership style in which no key responsibilities are delegated to
numerous middle managers (Ramasamy Sabatini and Gardi, 2017). It describes a clear
atmosphere in which all relational and general interactions between managers and superior
authorities, as well as employees, are seamless, as they share all of the implementing aims and
targets with everyone. For example, the Premier Inn Hotel employs a flat organisational structure
and is focused with providing all senior management and food and general service directives to
its members.

Tall organisational structures used to have a fractured structure in which all
management decisions were made based on a distinct hierarchy. As there are many managers in
this type of organisation, each of them will be given the task of controlling and managing a
certain section. In this system, the managers used to allocate all of the work and accept primary
accountability for their teams. Marriott, for example, uses a tall structure to operate their firm,
and their top management provides advice to all employees on work and management.
The main contract and comparison between two is Tall structures have a lot of layers of
hierarchy, whereas flat structures only have a few. The time it takes to build a tall structure is
comparable to that of a flat structure. Because tall structures have multiple levels because they
are typically divided into separate departments such as food, lodging, and so on, and flat
structures have a main wide and direct control over everything, they can manage and cover all
throughput without any management participation (Singh, Gunasekaran and Kumar,
2018) .Another distinction is that towering structures are expensive, whereas flat structures are
inexpensive. Tall structures have a lot of chances for promotion, whereas flat structures have a
lot of opportunities for promotion. Tall structures have a small control span, whereas flat
structures have a very large control span.
Discuss different business functions.
An enterprise's business functions are the activities that it engages in in order to earn
revenue and produce goods. This aids in assessing and controlling the organization's overall
profitability. Human resource management, marketing, and finance are some of the key
departments that aid in the effective administration of a corporation.
Marketing is a technique for increasing the visibility of hotels and the services they provide to
clients through attractive offers. The influence on all functional management is that it aids in
growing sales and marketing goods and services, as well as having a significant impact on
employees by encouraging them to focus on new ideas and creative abilities in order to manage
production (Simić, Babić and Andrić, 2018). As the Premier Inn Hotel has staffs that manages
all marketing, they have greater promotion abilities when it comes to advertising their different
hotel offerings.

Finance is an important department that manages all of the company's costs and budgeting with
correct cost framing. Its influence on functional management is that it reduces costs and
increases profits, while for workers, it aids in the administration of benefits through which raises
may be granted. The Premier Inn Hotel's finance department maintains precise budgets and costs
in order to maximise profits while attempting to control budgets for hotel resources and
amenities.
Human resources management: HRM is a manager's outward practise of deploying, hiring, and
recruiting all of the company's personnel. It contributes to the profit that can be made. It has an
influence on functional management in that it aids in the hiring of the most qualified candidates
for the firm, as well as improving the facility and advancement. Whereas its influence on
workers is that it aids in the management of the training process, increasing employee
productivity and so allowing the firm to benefit. As the manager of Premier Inn Hotel's
successful selection and training procedure for managing client services (Penney, 2019)..
Define organisational culture and explain how positive culture impacts on the success of
organisation
Organizational culture is a strategy that aids in the management of appropriate methods
and approaches for framing ideals, shared beliefs, and a generally good culture and environment.
All of the principles that are applied in such a culture are non-profit, and it produces big
expectations, philosophy, and experience, among other things, since in all organisations,
employees are expected to adopt identical behaviour that has been in place for a long time. This
is a practise used by businesses to regulate their employees' moral and ethical behaviour in
accordance with all common ideals. It generally focuses on sociology, psychology, and other
related subjects. . As a result, it is critical to maintain a good attitude at work in order for the firm
to improve its image and reflect a positive characteristic in society. In all areas of the
organisation, a positive culture fosters an ethical and valuable environment. When a firm has a
solid organisational structure, it instantly reflects on the workers' performance and behaviour, as
they will be more loyal to their hotel and hospitality sector, stay longer, and handle all of the
work to be done efficiently. Premier Inn Hotel is a well-known hotel that strives to maintain a
good work atmosphere in order to foster a positive attitude and improve overall performance.

They make better communications and cultivate the evolved nature in their behaviour to manage
a pleasant business culture.
CONCLUSION
From the preceding essay, it can be deduced that business organisation is the
administration of many company practises that aid in attracting consumers and maintaining
development. Sole traders are one-person businesses with benefits such as all profits going to
them and drawbacks such as a large financial responsibility. When two or more people agree to
continue on the same commercial practise, they form a partnership. Tall organisational structure
is the separation of all sectors into various departments; it differs from flat structure in that tall
structure is handled by different managers, whereas flat structure is open to all and has direct
interaction between employees and the boss. HRM aids in the selection, employment, and
expansion of the hospitality industry. Furthermore, it is stated that organisational culture fosters a
good attitude among employees and has a significant influence on workplace culture.

REFRENCES
Books and Journal
Babich, V. and Birge, J.R., 2020. Foundations and trends at the interface of finance, operations,
and risk management. Operations, and Risk Management (September 10, 2020).
Jayasinghe, R.S., Rameezdeen, R. and Chileshe, N., 2019. Exploring sustainable post-end-of-life
of building operations: a systematic literature review. Engineering, construction and
architectural management.
Ramasamy, S., Sabatini, R. and Gardi, A., 2017, June. A unified approach to separation
assurance and collision avoidance for uas operations and traffic management. In 2017
International Conference on Unmanned Aircraft Systems (ICUAS) (pp. 920-928). IEEE.
Singh, R.K., Gunasekaran, A. and Kumar, P., 2018. Third party logistics (3PL) selection for cold
chain management: a fuzzy AHP and fuzzy TOPSIS approach. Annals of Operations
Research, 267(1), pp.531-553.
Simić, T.K., Babić, O. and Andrić, V., 2018. Influence of Airport Operations Management on
Traffic Complexity and Efficiency. Division of Airports and Air Traffic Safety
University of Belgrade, Faculty of Transport and Traffic Engineering Belgrade.
Penney, G., 2019. Exploring ISO31000 risk management during dynamic fire and emergency
operations in Western Australia. Fire, 2(2), p.21.