Understanding Business Organizations: Types, Functions, and Organizational Culture

This report covers the different types of business organizations, including sole trader, partnership, and limited company, and their advantages and disadvantages. It also discusses business functions such as HRM, production, and operations, and the impact of organizational culture on success. The report includes examples from the hospitality and tourism industry and references from academic journals.

Understand Business
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The definition and outline of three advantages and disadvantages of the different types of
business for example: sole trader, partnership, limited company, etc........................................3
Compare and contrast tall and flat structure of an organisation. Make sure you include
hospitality and tourism Industry examples in your discussion...................................................5
Discuss different business functions such as Human Resource Management, Production,
Operations, etc. and the impact of their functional management activities on organisations and
the people within the organisations.............................................................................................5
Define organisational culture and explain how positive culture impacts on the success of
organisation.................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

·INTRODUCTION
Business organisation is defined as a structure which purpose to selling and buying the
commercial organization. It is the term of management which helps to planning the different-
different activities of business. In other words, it is the process of buying and selling the goods
and services for earning profits. In this report it has been covered the different types of business
which includes sole trader, partnership, limited company etc. its advantages & disadvantages,
functions, organisational culture. This report will help to analysis and covered all the activities
of business which aims to earning profit. It helps to control all the factors of production.
Organisation describe the business structure and help the business to achieve the goals. This
report will cover the management activities of organization and also positive culture impacts on
the business (Fehrer, Woratschek, and Brodie, 2018).
l壱MAIN BODY
l壱The definition and outline of three advantages and disadvantages of the different types of
business for example: sole trader, partnership, limited company, etc.
It is refer to the entity which is formed for purpose for buying or selling the commercial
activities for earning profits. It is also define as the term of management which is help to
analysis the business structure and how its produce the goods and services to the customer.
Business organisation helps in earning profits and also improve the performance of business for
future. It is also helps in to collect the information about business and help to solve the
problems. Business organisation is a business which is manage by the organisation system for
the purpose of describe the business and activities of business. The Business organisation is
helps in to provides goods and services to customers according to them and satisfied them by
fulfilled their needs and wants. There are different types of business organisation, where three
types is common which are as follow-
Sole Proprietorships: It is term of business which is owned by individual. Sole trader
are basically owned or control by a company or owner. In this business there is no partnership, it
is also known as sole trader-ship. It is the type of business which can run by individual (Joiret,
2018).

·Advantages:
1 Taxes: it is help in taxes, because it is a separate business where business organisation not
required any taxes from sole trader. Any profit of business as income for individual.
2Maintenance: sole proprietorships is easy to start and maintain because there is no legal
costs are required for business.
3Control: the owner has the power to control the business by its own because there is no
partner and also owner has decision power.
·Disadvantages
1Liability: there are no separation of liability the owner are able to pay the assets by as
individual there is no support of other
2Funding: for start any business, funding is play a vital role. So, raising money by itself is
not easy.
3Support: there is no support because tgis business is run by individual there is no partner
who can support the pressure. The only owner is responsible in the business for the success
and failures.
Partnership: It is a business which is owned by two or more people is called
partnership. They both are responsible for the success and failures.
·Advantages:
1It is help in collect more capital for businesses.
2It is help to easily setup the business .
3It is help in support of partner.
·Disadvantages:
1No independent legal status.
2difficult in decision making.
3Limited ability to raise capital.
Limited Company: It is define as the form of organisation where it has limited
members, liability and responsibilities which is undertaken by company's holders (Maroun,
2018).
·Advantages:
1Limited expenses.
2opportunity for tax planing.

3profit without double taxation.
·Disadvantages:
1Limited ownership.
2comprehensive agreements.
3High cost of fees and legal status.
l壱Compare and contrast tall and flat structure of an organisation. Make sure you include
hospitality and tourism Industry examples in your discussion.
Tall Organisational Structure: It is refers to large scale organisation where, it has so
many leaders and layers. It is also called as long term command. A tall organisation has so many
levels of management. It has many levels of hierarchy (Martinez, 2019).
Flat Organisational Structure: It is refers to the small scale organisation where, it has
no leader or command of management. It is help in better communication and also it has a
shorter chain of command. It is offer so many opportunities for employee. It has lack number of
level of hierarchy.
The comparison between tall and flat organisation structure is, tall structure has many
levels of hierarchy. In this structure the control is seen. The cost of this structure is high because
of there are many staff within a organisational. The promotion opportunities is high, where flat
structure has limited levels of hierarchy, in this organization control is wide. The cost for flat
structure is low and there are limited promotion opportunities.
l壱Discuss different business functions such as Human Resource Management, Production,
Operations, etc. and the impact of their functional management activities on organisations and
the people within the organisations.
Business function is define as the term of activities which is helps to support the
functions of business. For any business it is necessary to have the business functions because for
an organisation there are so many departments and every department has different-different work
which is help the organisation to support by every department., which allows to work
effectively. The each department of organisation play a vital role to achieve the success and

goals of the organisation (Meyer Jr, and et.al., 2019). There are various types of business
function which are as follow-
Human Resource Management: it is the term of management function which refers to
the hiring, maintaining, motivating, controlling the employee in a organisation. It is help
employees in training and development and motivate them for work, which is help in increase
the performance of an employee. HRM is the important function of business organisation which
is the process of planning, controlling, motivating, hiring the employee and selecting the best
candidate for the position. The human resources helps the organisation by providing effective
and efficiency workers, improve the culture and environment of the organisation. For any
organisation HRM is the most important part.
Production: It is the function which is depends on marketing process. This department
involves high investment in assets and work capital. It is the function which is justified when all
the sales activities are done through. It is the creation of products and services. Production
department produce or manufacture the product to delivered to customers. It is also the
important function which is need by any organisation because the creation of this department
impact the organisation effectively.
Operation: this department play a vital role in any organisation which is responsible for
creation of goods & services process which involves planning, controlling, organising the all
resources of the company. It is helps the organisation by analysis the opportunities and trends of
the market within the industry (Piekarczyk, 2020).
l壱Define organisational culture and explain how positive culture impacts on the success of
organisation.
Organisational culture is define as the term of collection which includes values, practices
and expectations which is help to guide and inform the activities to members. It is refers to the
mission, expectations and objectives of the company to guide the employees. There are some
positive culture that impacts the success of the organisations which are given below-
·A healthy organisation helps employees with job satisfaction, understand the employee term
and conditions which is helps in increase the productivity of an organisation.
·By making a strong organisation culture helps in leading the brand and improve the brand
performance.

·A healthy culture make a healthy team which is helps the organisation to achieve the goals
effectively.
·increasing the employee engagements for business success.
·A strong culture gives freedom and authority to employees (Verma, Bhattacharyya, and
Kumar, 2018).
·CONCLUSION
From the above study it has been concluded that business organisation is the important
part for commercial enterprise, it is the process of buying and selling the product and services to
customers and satisfied them by fulfilled their needs and wants. It has been analysis that there
are many kinds of types of business organisation which includes sole proprietors, partnership,
Limited company etc which has many advantages and disadvantages. in the above mention study
it has been analysis that there are two types of structure of organisation tall and flat structure
which has large levels and limited levels of hierarchy. It has been analysis that business
organisation has so many departments which play a important part for any organisation because
an organisation is run by different – different department and every department has different
works . The organisational culture is also the important part which is the collection of values,
exceptions which helps to guide the employee of the organisations
·

·REFERENCES
Books and Journals
Fehrer, J.A., Woratschek, H. and Brodie, R.J., 2018. A systemic logic for platform business
models. Journal of Service Management.
Joiret, B., 2018. What strategy should be followed by a cluster organisation for the development
of Liège's biotech ecosystem? The case of Bridge2Health.
Maroun, W., 2018. Modifying assurance practices to meet the needs of integrated reporting: The
case for “interpretive assurance”. Accounting, Auditing & Accountability Journal.
Martinez, F., 2019. Process excellence the key for digitalisation. Business Process Management
Journal.
Meyer Jr, V., and et.al., 2019. Convergence between performance and amateur management of a
social organisation. International Journal of Productivity and Performance
Management.
Piekarczyk, A., 2020. Organisation Culture From Systems Theory of Organisation Perspective in
the Era of Copernican Revolution. In Recent Advances in the Roles of Cultural and
Personal Values in Organizational Behavior (pp. 1-17). IGI Global.
Verma, S., Bhattacharyya, S.S. and Kumar, S., 2018. An extension of the technology acceptance
model in the big data analytics system implementation environment. Information
Processing & Management, 54(5), pp.791-806.