Understanding Business Organisations - Essay

This essay discusses the different types of business organizations, their advantages and disadvantages, organizational structure, functions, and culture. It covers sole proprietorship, partnership, and limited company, tall and flat organizational structures, HR management, production, and operations functions, and the impact of organizational culture on the success of the organization.

UNDERSTANDING
BUSINESS
ORGANISATIONS - ESSAY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Paragraph 1..................................................................................................................................3
Paragraph 2..................................................................................................................................4
Paragraph 3..................................................................................................................................5
Paragraph 4..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Business organization are the entity formed for the purpose of carrying on commercial
enterprise and organizations are predicated on system of governing contract and exchange,
incorporation, property rights. There are three types of business such as sole proprietorship,
partnership and corporation and each has its own advantage and disadvantages.
This essay will highlight the different types of business and their advantages and
disadvantage. It would be discussing structure of the organization as well as business functions
and their impact on functional management activities. At last, it will cover the topic where it
shows the organization culture with it positive impact to the success of organization (Chams and
García-Blandón, 2019).
MAIN BODY
Paragraph 1
Sole trader and its advantage and disadvantages
Sole trader refers to sole proprietorship, in basic business structure where individual own
and runs the whole business. He is eligible to keep all profits after tax deduction, and he is also
liable for the losses which occur s in business it is different from corporation, limited liability
partnership and limited liability company where no separate legal entity is formed.
Further there are major advantages of sole trader such as they have full control in daily
operations and strategical decision-making in business as with how large they wish to grow it.
Sole trader do not require to absolute many of forms and accountancy information which limited
company demand to produce. Annual accounts help to make annual self assessment tax return in
which annual profits and tax liability can be shown (Harris, 2020).
The negative aspects of sole traders can be concluded as they are solely liable for
consequences of business failure or it may be any other liability. Also, other people represent as
small company where it is difficult to get bigger jobs due to many organizations don't work with
business who operates with the staff of one. Sole trader must require to manage the account in
correct manner for the sales, profit and expenses for national insurance liabilities an income tax
on annual basis.
Partnership and its advantage and disadvantages

It is the formal arrangement within two or more parties for managing and operating business as
well as sharing profits. In such business, all the partners share profits and liability and profit
equally whereas in others partners partners have limited liabilities (Iasmina, Gabriela and
Alexandra, 2019).
The positive aspects of the business are, it is easy to get started, and they can agree to
make partnership verbally or in written methods. Business partners provides mutual support to
each other and partnerships forms better outcomes. Every partner has own knowledge,
experience, skills and contacts to business which provides better possibility to success as
compare to partners are trading separately.
The disadvantage of can b partners are liable for the business debts without limitation.
Partners are severally and jointly liable for each other debt in business partnership in which
responsibility for both to share their partnerships debt and all other such debts. Also, quick
decision-making can not be possible in this business (Iosim, Popescu and Vuici, 2019).
Limited company with its pros and cons
Limited company is the business structure in which company is considered as the legally distinct
body. The business would be legally distinct from the individual who run it. Business finance
will be individual from owner personal finance. The major advantage of this would be
minimizing the personal liability and while forming the company is limited liability protection.
The most notables disadvantage are the company are must be incorporated at companies house
and it is necessary to pay the fee to companies house. Also, the accounting requirements are
complex and times consuming.
Paragraph 2
Tall organization structure is also known as vertical organization in which CEO remains
at top chain of command and there are various levels o management below. Flat organization is
also named horizontal organization which includes low levels of management and more
employee independence in decision-making process.
In discussing the organizational structure of Hospitality and tourism industry, Hilton
follows the tall structure and is the comprehensive plan by the owner to describe the department
responsibilities and activities (Lubis and Hanum, 2020). The structure brings in Oder to each
aspect of their operations from front desk as well as service to human resource department. This
structure is important for ensuring the maximum profits. It brings the efficiency with the proper

management of the structure and it is easy to understand. Hotel uses the wide span of control
which work with every department to report directly the general manger. It delegates the
authority to assistant mangers, head of the department and supervisor for daily basis issues.
There are five department in Hilton such as Human resource, rooms, food and beverages,
Marketing and accounting each department deals with their situation accordingly in order to
provide better service. The major cause leads to the Human resource department who recruit,
provide training and benefits in order to carry out the best individual for positive outcomes.
Timber bush tours follows the flat structure as the positive impact of this leads to bring the clear
coordination of task in order to get the basic goals.
Also, there is clear and short unit of information links. This structure is mainly for the
small companies and not for the large companies who have the huge amount of employees.
There is simple relation of substance and high quality. In the tourism sector this is beneficial for
the better management and being competitive in the marketplace (Morris and et.al., 2020).
Paragraph 3
Human Resource management
HRM is the strategical approach for efficient and effective management of individual in
organization, so they can provide competitive advantage to the business gains. The main purpose
of this is to enhance the employee performance in service of employer strategical objectives.
HRM check the smooth functioning the organization, the process develops from formulating
right policies as per job requirement and ends with concluding the successful growth of
company. It is the invisible agent which covers all the feature of organization for better progress.
It will create impact of HRM functional management activities for the organization and its
people if the proper and suitable recruitment and selection are made. HR managers sees the
strategies to guarantee organization meets business objectives and assist employee to understand
the ways of forming productive work connections with the need not allow affect their behaviour
by personal judgement. For people, it if beneficial as it enhances the efficiency and productivity
of their work.
Production
Production refers to the procedure of managing task of business to carry out desired
outputs of products (Nocker and Sena, 2019). It takes raw material and converts them into the
finished goods. Quality product add up value for customers. The impact of this would be

positively affected the organization and people due to the minimizing cost of production, it
increases the use of resource to the fullest. It is a great way for organization dealing competition
in marketplace, smooth process build up the efficiency and allow providing quality products. It
will enhance the communication will suppliers for raw materials and reflect on organization for
regular time and delivery. It would reduce about cost by get rid of time wastage and increased
process flow. Providing the opportunities to the productive employee will make contributions
towards the organization with sense of purpose.
Operations
Operation sin business is the day to day organization activity which forms the unique
value to achieve the corr objectives. It plays typical role which contributes to the success of
organization. The impact of operation function management activity bring both positive and
negative aspects, it is important for business to manage, control, administer goods, service and
people effectively. Also, when productivity is high the customer satisfaction will increase and as
a result it will enhance the sales and quality of goods and service (Paais and Pattiruhu, 2020).
For people in organization it enables to shape and scheduling the resources for meeting the
business targets. Negatively, there are several consequences which can result from internal
failure procedures, from external events with legal risk affecting to overall condition of
company.
Paragraph 4
Organizational culture refers to the collection of values, practices and expectation which
in order to guide and inform about the action of team members. Culture is evident in variety of
ways which includes leadership, communication styles, behaviours and corporate celebrations.
They share the values and decide which values should be express, such as outcome orientation,
people orientation, team orientation, stability and innovation for encouraging the
experimentation and taking risk (Sunarsi, 2020). In Hilton, the organization culture brings many
positive aspect for better improvement in the working environment where the employee feel
more comfort to perform their jobs. The culture depends on behaviour of employer working in
the organization, if they fit in the culture it will be benefit for the organization to succeed as their
behaviour reflects with their work. Healthy culture motivates the workplace in which employee
has the job satisfaction and with deeper employee engagement it will boost the productivity as
well as less employee turnover. Whereas with strong and motivated culture leads to improved

branding and add value to the Hilton. Overall, the culture is positive in terms of foundation for
strong business and it attracts the staff who may stay for longer time period and enhance the
amount of loyal and happy customers (Rosa and Scott, 2019).
CONCLUSION
By this essay it has been summarized about types of business such as sole trader,
partnership , limited company. It has been discussed tall and flat organization structure of the
organization. Three business functions are taken in consideration their impact are shown how it
will impact on organization and people in the organizations. Apart from this the organizational
culture is bee described with its impact of positive culture on the success of organization.

REFERENCES
Books and journals-
Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource
management for the adoption of sustainable development goals. Resources,
Conservation and Recycling. 141. pp.109-122.
Harris, R., 2020. Going the Distance: Eurasian Trade and the Rise of the Business Corporation,
1400-1700. Princeton University Press.
Iasmina, I., Gabriela, P. and Alexandra, V., 2019. communication management in hierarchical
structures. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol.
21(1).
Iosim, I., Popescu, G. and Vuici, A., 2019. communication management in hierarchical
structures. Lucrări Științifice Management Agricol. 21(1). p.33.
Lubis, F.R. and Hanum, F., 2020. December. Organizational culture. In 2nd Yogyakarta
international conference on educational management/administration and pedagogy
(YICEMAP 2019). Atlantis Press (pp. 88-91).
Morris, R.L. and et.al., 2020. October. Breadth verses depth: the impact of tree structure on
cultural influence. In International Conference on Social Computing, Behavioral-
Cultural Modeling and Prediction and Behavior Representation in Modeling and
Simulation (pp. 86-95). Springer, Cham.
Nocker, M. and Sena, V., 2019. Big data and human resources management: The rise of talent
analytics.Social Sciences. 8(10). p.273.
Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture
on satisfaction and employee performance. The Journal of Asian Finance, Economics,
and Business. 7(8). pp.577-588.
Rosa, P.J. and Scott, M.G., 2019. Portfolio entrepreneurs: some empirical evidence on the
multiple ownership or control of SMEs, and its implication for our understanding of
start-up and growth. In Entrepreneurship and SME Research: On Its Way to the Next
Millennium (pp. 113-126). Routledge.
Sunarsi, D., 2020. The analysis of the work environmental and organizational cultural impact on
the performance and implication of the work satisfaction. Jurnal Ilmiah Ilmu
Administrasi Publik. 9(2). pp.237-246.
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