Understanding Business Organization in the Context of Travel and Hospitality Industry

This report defines and outlines specific types of business organizations, their benefits and drawbacks, and compares tall and flat structures. It also discusses business functions and their impact on management activities, and organizational culture and structure in the context of travel and hospitality industry.

Understanding business
organisation

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Paragraph 1.......................................................................................................................................3
Paragraph 2.......................................................................................................................................4
Paragraph 3.......................................................................................................................................5
Paragraph 4.......................................................................................................................................6
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................7

INTRODUCTION
The term business organization is denoted by the meaning of a particular kind of an
established entity that is made up of or formed by a cohesive group of people belonging to varied
backgrounds who come together for the purpose of conducting commercial activity. These
organizations are governed on the basis of properly structured laws, property rights, etc. within
which these work (Holbeche, 2018). The following essay based report will accurately define and
outline specific three distinct types of business organizations along with their benefits and
drawbacks. It will also include several examples based on the tourism and hospitality sector in the
context of which this essay report will be conducted. The report will compare and contrast tall and
flat structured organizations with their advantages and disadvanatges which will be followed by a
discussion on three particular types of business functions and and their impact on management
activities. Lastly the essay will descriptively report on organizational culture and structure.
MAIN BODY
Paragraph 1
After having defined and discussed the concept of business organizations, it is required to
understand that there exists various types of businesses that are conducted by either the owners or
collective partners on the basis of clearly defined differing sorts of business objectives that pertain
to that particular business type (Ritchi and et.al., 2020). Out of the various business types, here are
presented three specific kinds of business types that are as follows:
Sole trader/proprietorship

A sole trading business is referred as a business/ an enterprise which is owned plus run by
individual person on single basis. This is considered sole trader-ship/sole proprietorship as it has
zero legal differentiation among the business including the owner(s). In these businesses, the owner
has full control over all major operations and upon the decisions regarding the business, thereby it
has an advantage of being the sole decision-maker while as a drawback it also has to bear all losses
single-handedly. For instance the UK based hospitaly business like the Virgin Holidays has to bear
both profits and losses (Cribb and et.al., 2019).
Partnership
The partnership is defined as an agreement amidst more than 2 parties for handling and
operating any business collectively and sharing gined profits/losses of their business together. In
this are different types of partnership treaties, but the responsibilities and profits regarding the
business are managed equally. Here this business has the benefit of shouldering even the
shareholder requirements together and as a disadvantage at times its risk increases due to asset
liabilities. As an example the travel sector of thr UK such as the Advantage Business Travel group is
a major form of business partnership (Nayak, 2020).
Limited liability
A limited liability organization could be defined concerning the type of sectoral business
structure in which the owners plus members do not get personally or singularly liable for every
(presupposed) acts committed or witnessed through the particular company. It is a mixed or
amalgamated type where it has the advantage of experiencing few losses as it is limited in nature
and also has a drawback concerning the restriction of having some beneficial legal or fiscal policies.
Example, the the Hilton hotel branches in UK travel industry falls under this spectrum (Jyothirmai,
2020).
Paragraph 2
A business organization similarly like the various types of businesses consists of a number
of workflow structures within which a specific organization works. These include a wide variety of
organizational structures such as the hierarchical strucrure, tall, flat-oriented, horizontal, functional
or divisional and many more (Andersson and et.al., 2019). Given below are mentioned and
described two very specific kinds of structures namely tall and flat.
Tall structured organizations: Those business organizations that exhibit a tall kind of
organizational structure imply that in general the existing or other complexities within a firm is
based on its large-scale size orientation. This can be explained through the example of US military
structure that has a long command chain and likewise a tall structured organization has numerous

members that have to look up to various management layers which includes both front-line
employees and senior supervising leaders (Ganji Bidmeshk and et.al., 2022). The benefit of having
a tall structured firm is that its managers can provide multiple directions to the employees but there
always remain a lack of interpersonal communicative relationship. For instance, the Hyatt hotels
corporation display at times a tall or vertical organizaional structure.
Flat structured organizations: As compared to the tall or vertical structured organizations the flat
or horizontal shaped organizational structures could be easily anayzed and understood by the name
itself that unlike a tall frame of management the employee-senior relationship is more direct with
easy approach. Here the the personnel feel much more empowered as they can smoothly
communicate with their senior associates with a good amount of responsible autonomy. One of the
major advantages of such a flat structure is that everyone gets encouraged and productivity
increases but it also comes with a drawback that is a timely occurence of confusion and
miscommunication that might arise with overlapping of infomation and a lot of free association
among employees and managers (Jermsittiparsert and et.al., 2019). For instance UK based Travel
Inn works on a flat/horizontal structure.
Paragraph 3
There exist a lot of diverse and dynamic business functions within the structures of several
organizatino based on the inter-relationship and inter-functionality of which all the business related
tasks and activities are then planned and carried out (Cagle and et.al., 2020). Some of these are
discussed as follows:
Management:One of the most important business function comprises the management department
that entails four main constituents namely planning section, organizing, controlling, and leading
sections. These consist of the main or primary roles of the respective managers whose job it is to
supervise the proper channeling of organizational members and their associated activities (Shinde,
2018). The management business segment has a very significant and vital impact on the working of
the entire organization as the name itself suggests this section's job isto manage people and their
assigned tasks and roles. A prime example of this business function could be seen in the hospitality
service sector industry of UK with special reference to Premier Inn where the management function
handles all the customers' and personnel's needs (Phillips and Enderby, 2021).
Operations: The operations department of an organization is that business function which
incorporates the inputs or in other terms the necessary factors of production are converted into the
desired outputs of the business organization. The opeartions department is located at the integral
center of any business or company as it not only oversees or looks over all the other existing

business functions but also participatesin the adequate provision of the required goods and services
both in terms of their quantity and relative quality so that its satisfies the consumers and commits
the employees more towards the working goals and company objectives. It affects the entire gamut
of an organization's structure and culture as it helps facilitates the working of supply chain,
comprising both logistics and procurement as can be evidently seen in the structure of the Travel
Lodge organization in the United Kingdom (Haddud, A. and Khare, A., 2020).
Finance:Another one of the most vital business function includes that of the finance segment that is
involved with the drafting of economic, monetary and fiscal plans of the concerned organization.
The accountants, financiers, and other budget making individuals are tasked with the roles of
managing, accounting and devising strategies for the short and long term goals of the company
(Polak and et.al., 2020). As per the allover global statistics that have been recorded till now, all the
activities that a business is concerned with such as ranging from the gathering of the inputs to the
execution of its plans to its sales, advertising and marketing tasks; in almost everywhere the finance
department is of the utmost importance. It also collaborates with other functions like with HR
payroll processing system. This can be seen in almost all the hospitality and travel companies such
as the Mariott, Jet Airways, etc.
Paragraph 4
Organization culture can be referred to as collection of values and virtues that helps for
guiding actions of every member working in a company. It can even be considered as trait which
makes travel and hotel firms like Hilton and Virgin Airways what they should be. It comprises
philosophy, anticipation, values plus the experiences regarding the company. An organizational
culture basically means inclusion of healthy-working environment for all employees. Healthy
surrounding concerning all business organizations can even be generated by strong realization of
many efforts that workers put in their organization. The 5 characteristics which are included among
business companies worldwide regarding organizational culture provided below are namey –
financial stability, friendly intercultural relations, high work performance ehancement, reward and
recognition motivation of employees, etc (Lubis and Hanum, 2020, December).
The vitality regarding organizational culture could be described in such way that this aids to
create image of brand and its awareness, the virtues and its mission which aligns all candidate's
potential abilities and talents to help increase profitability in business. Organizational culture and
structureal values offer much more than this. It basically comprise more than only making
organization which create atmosphere which will create participation of all employees in business
firm as it links with strong company image and related productivity (Aranki and et.al., 2019).

CONCLUSION
From the above essay it is clear that there exists a lot of various kinds of business categories
and its related functions. The above report has clearly defined what is a business organization and
how many types of businesses are there along with descriptin of their features in the context of
examples from travel and hospitality firms. The essay report has also depicted and differentiated
among the types of organizational structures that exist diversely. It has furthermore analyzed and
discussed the various kinds of business functions that runa nd correlate with each other in a business
scenario and lastly it has accurately defined and given the importance of organizational culture and
its positive impacts.
REFERENCES
Books and Journals
Andersson, T., and et.al., 2019. Building traits for organizational resilience through balancing
organizational structures. Scandinavian Journal of Management. 35(1). pp.36-45.
Aranki, D.H., and et.al., 2019. The relationship between organizational culture and organizational
commitment. Modern Applied Science. 13(4). pp.137-154.
Cagle, M.N., and et.al., 2020. Digitalization of business functions under industry 4.0. In Digital
Business Strategies in Blockchain Ecosystems (pp. 105-132). Springer, Cham.
Cribb, J., and et.al., 2019. Who are business owners and what are they doing? (No. R158). IFS
Report.
Ganji Bidmeshk, O., and et.al., 2022. Exploring the factors in aligning information systems and
organizational strategies in tall organizational structures in an uncertain environment. The
Electronic Journal of Information Systems in Developing Countries. 88(2). p.e12205.
Haddud, A. and Khare, A., 2020. Digitalizing supply chains potential benefits and impact on lean
operations. International Journal of Lean Six Sigma.
Holbeche, L., 2018. The agile organization: how to build an engaged, innovative and resilient

business. Kogan Page Publishers.
Jermsittiparsert, K., and et.al., 2019. The influence of customer and technology supply chain
integration on social sustainable performance with moderating role of organizational
structure. International Journal of Supply Chain Management. 8(3). pp.71-82.
Jyothirmai, B., 2020. Limited Liability Partnership Suitable to Emerging Enterprises in Current
Trends. Issue 4 Int'l JL Mgmt. & Human.. 3. p.432.
Lubis, F.R. and Hanum, F., 2020, December. Organizational culture. In 2nd Yogyakarta
International Conference on Educational Management/Administration and Pedagogy
(YICEMAP 2019) (pp. 88-91). Atlantis Press.
Nayak, H., 2020. How Partnership Act Ease-out Doing Business for Partnership Firm?. Jus Corpus
LJ. 1. p.641.
Phillips, A. and Enderby, P., 2021. The functions of management. In Developing Leadership Skills
for Health and Social Care Professionals (pp. 104-113). Routledge.
Polak, P., and et.al., 2020. “Intelligent” finance and treasury management: what we can expect. AI
& SOCIETY. 35(3). pp.715-726.
Ritchi, H., and et.al., 2020. The influence of business process representation on performance of
different task types. Journal of Information Systems. 34(1). pp.167-194.
Shinde, S.V., 2018. Functions of management. Lulu. Com.