Understanding Business Organization - Essay Guide

This essay guide provides an understanding of different types of business organizations, their structures, and functions. It covers sole trader, partnership, and limited company structures, as well as hierarchical and flat organizational structures. The guide also discusses the impact of organizational culture on business success.

Level 0 Guide - Essay
2021/2022.
Understanding Business
Organisation
Table of Contents

INTRODUCTION ..........................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business is the separate legal entity that is entitled by the group of people aiming to
generate higher level of profitability in order to sustain in the market for long period of time.
There are various types of business such as sole trader, partnership & limited company that are
operating in the business environment by using various organisational structure on the basic of
their function and its size(Attar and Abdul-Kareem, 2020). There are various organisational
structure are flat, hierarchical & divisional. This respective essay will includes the examples of
sectors that are make sure more profits & growth of the business. This report will analyse the
various functions of venture & their impact on certain management functions. Lastly, it will
compare & contract with the organisational structure.
Sole trader is the person who is operating and managing their business by their own &
also accessible for all the generated profits & looses, they also liable to pay all the incurred tax
rate that is being implied by the government. Plumber and Hair stylist is the appropriate example
of sole trader. Advantage of sole trader is, they can open their own business and also ensures
with the right approach in order to have their own venture and moreover, all the profits is being
gained by single person which is also leading to have more profits(Beynon-Davies, 2021).
Disadvantage for sole trader is, they are working with unlimited liabilities that are difficult to
procure and get funds foe the venture in their expansion.
Partnership is defined as the formal agreement by two or more people in order to
manage and operate a business and also sharing profits. These firms have to to share all the
taxation that is imposed by the government & also have the better consideration in the market.
Partners ensures the transparency which is related to the income and the capital. The best
example for partnership is Deciduous that is facilitating information for the services
management. Advantage of partnership as they share all the profit and looses on fixed
basis(Bernhagen, 2021). By that they share the burden related to all the looses that become the
disadvantage for the venture.
Limited company is the basic forms of incorporation that limits the particular amount of
liability that is being taken by the shareholder's of the organisation. This is the main aspects of
the business which is having legal structure and also ensures that there is limited liability to their
stake. Morrisons is the appropriate example in the retail industry which is also operating food
items and groceries(Edmonstone, 2021). Advantage of limited company is that there is no few

capital which is also having other legal entity in the firms. Further, the disadvantage of this,
they restricts that ability of transfer of ability of shares & they can not having the prospectus to
the public.
Organisational structure refers to the form in that the firm is operating all the business
functions & also ensuring higher profits(Balaji, 2021). This can be done by dividing the whole
work into small groups of the individual and also accessing the skills & abilities of the workers
by which they can effectively complete the work in an right manner.
Hierarchical organisational structure is also called as the tall structure in that an
autocratic leader are working from the departments & effective communication is being flow
from the top level management to the lower level of management. They also tends to follow the
command of their seniors and employees are not allowed to give their valuable suggestions and
the related feedbacks to the top level management. The best example for such type of
organisation is Amazon as they are working in such type of organisational structure in that all the
employees as they are strict to follow the assigned task and their duties(Miller and et. al., 2021).

Flat organisation structure refers to the entity in which top level management is having
the direct connection with the top level employees that are operating various venture functions.
In this type of business, the leader is having decentralised approach as there is no duties & role
of middle level management(Anderson, 2021). The suitable example of company which are
dealing in flat organisation structure is Google in which they assigning the work by forming
group by which the workers can directly contact to the managers.
An business can only be operated with the right execution of the certain functions in the
company & talented employees is performing their given job in an appropriate manner. For
example, Morrisons is the retailing organisation that is conducting their venture on larger
segment & there are certain business functions that is being operated by the venture are shown,
Production is the business unit that is concern for manufacturing certain products and it
is the largest department which is offering products for the final sale to the consumer. This also
included the mechanics & proper machine setup & the workers which can rightly run their
business in well defined manner(Miller and et. al., 2021). In relation to Morrisons, they are
rightly conducting their operations on larger segment which also contribute to the share of total
profitability & reaching the company to higher level of success and growth.
Human resource management is the unit that is responsible for recruiting and selecting
the deserving candidate by evaluating their skills & abilities as per the specialised job role in the
organisation(Ales, 2020). They also ensures the salary, bonus, employee's leaves which an
organisation can rightly ensures effective working environment which can leads to have the
better growth and success of Morrisons can rightly expand their business operations.
Operations unit also ensures that the production aspects is being completed from the
start to finish & they have to cope up with the appropriate functionality of the business by which
they can have the higher collaboration with the different business functions. This also includes
the purchase of commodites and the hiring of the training of employees and their location and

layout of the company. In relation to Morrisons, they are conducting their business on larger
segment which can gives more profits and by this they can expand their market in new locations
as well.
Influence organisational culture is the key traits for ensuring the firms development. This
is the collection of practices, values and expectations which also guides and taught the certain
actions to their team member in order to accomplish particular business task(Grzesch, 2021).
The overall behaviour of the company is depends upon the working of the employees and the
CEO when they are responding to the particular crises in the venture and how they are working
in the emerging changes and the demand of the customer and rectify them in better way.
This is shown that 77% of the employees are considered as the organisational culture
before searching to the particular job and half of the workers leave their job as they are not
getting fair salary which is maintaining bad culture within the organisation. These all are the top
indicator by which employees are expecting at their workplace(Al Rfoa, Jaafar and Mohd
Raslim, 2021). This become the reason for more than 65% of the employees are expecting
change within the organisation.
For example, Morrisons is providing positive culture in the operations by which they can
rightly meet the need and wants of the customers & also have the retention of their employees
within the organisation which gradually enhance the productivity of operations in order to have
more sale and revenue. Positive culture gives advocacy to the employees as they do not hesitate
to explain and have their own point of view to the manager and the related top level
management.
CONCLUSION
From the above report, this is concluded that there are various types of ventures which
are operating in the market such as sole trader, limited liability and partnership. When the people
are conducting something with the aim of having more profits then the individual or the group of
people enter in the venture entity. Flat organisational structure make sure the effective flow of
communication straight to the managers and also give the suggestion to them. Whereas tall
business structure ensures the autocratic leader to delegate the duties and responsibilities in order
to complete major decisions by senior authority & the workers have to follow the actions of their
manager and certain instruction given by them. This also helps in having the effective operations
within the organisation and can rightly establish good brand image in the market.

REFERENCES
Books and Journals
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