Business Organizations: Structure, Functions, and HRM Analysis

This essay provides a detailed analysis of business organizations, focusing on different structures such as sole proprietorships, partnerships, and limited companies, highlighting their advantages and disadvantages within the hospitality and tourism industry. It compares and contrasts tall and flat organizational structures, examining aspects like span of control, centralization, and communication. Furthermore, the essay elaborates on key business functions, including HRM, production, and operations, emphasizing their significance in enhancing organizational performance. The impact of organizational culture on business success is also explored, using Premier Inn as an example. The essay concludes that a well-defined business structure and a positive organizational culture are crucial for fostering growth and achieving success in the competitive business landscape.

UNDERSTANDING
BUSINESS
ORGANIZATIONS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task-1..........................................................................................................................................3
Task-2..........................................................................................................................................4
Task-3..........................................................................................................................................5
Task-4..........................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
INTRODUCTION

Business structure refers to the form or status of an organization through that it runs its
business. The essay is aimed to present deep-rooted views on different types of organizational
structures such as sole trader, partnership, limited company etc. for these different types of
business organization some advantages and disadvantages shall be deciphered in attempt to bring
deeper understanding about them (Ritter and Pedersen, 2020)
Here different organizational structured would be compared and a brief review would be
presented that how doe they work and what are some similarity and dissimilarities amount them.
Furthermore, different types of business functions such as HRM, production, operations etc. are
to be elaborated with respect to hospitality industry. Organizational cultures, and their impacts
on the performance has to be articulated. At the end of the essay some examples will be shared
with regard to hospitality and tourism industry in order to present broader picture of business
structures.
MAIN BODY
Task-1
There are multiple types of business such as sole trader, partnership and limited
company. In hospitality and tourism industry there are a range of different types of organizations
who are getting operated such as Mitchells and Butlers, CH&CO, City Relay etc. (Leminen, et
al. 2020)
Sole Trader- Sole trader means the type of business whose ownership is in the hands of a single
person, who is having all the rights, liabilities and power of making decision.
Advantages-
 On such business there is no issue of conflict of interest.
 The sole owner may make fast and independent decision.
 There is no need to share profit with others.
Disadvantages-
 Limited funds availability.
 Lower level of expertise.
 There is no support from others.
Partnership- It is form of business where more than tow people come together and run a
business. There are some firms to such as Inter Continental Hotels Group, Whitbread and
Travelodge etc.

Advantages-
 The best part is that there would be more than one person so no issue of expertise.
 May raise more funds and can go for expansion (Liao, et al. 2019)
 Eradicate issues like total dependency on sole person.
Disadvantages-
 There will be need to distribute profit.
 Conflicts may take place.
 There would not be fast decision-making.
Limited company- This is the most common form of business, specifically in hospitality and
tourism sector where vast investments are needed. This is very general type of business and
getting priority in specifically tourism and hospitality sector. Here a wide range of people
contribute to the business and hold some shares (Wiener, Saunders and Marabelli, 2020)
Advantages-
 Here the business may arrange unexpectedly higher amount.
 There would not be problem of skills.
 Can reach to potential level.
Disadvantages-
 Slower decision-making.
 There would be need to distribute profit among all.
 A person can not get proper control on the business.
Task-2
There are multiple types of organizational structures and with the progress of time these
structures are getting reformed so here those similar or contrasting points among tall and flat
organizational structures are being presented (Bright and Deegan, 2021)
For instance- Premier Inn is one of the biggest hotel company of the nation so having Tall
structure to manage its operations. At the same time some small sized hotels are also there in UK
such as Ivybank Lodge, Trelawney hotel, Cedar Manor, Haytor hotel etc. who are having flat
structure.
Comparison between tall and flat organizational structure-

Span of control- span of control is wider for flat organizations structure since small business
keeps this form due to lower ability to hire managers. At the same time in flat organization have
lower or narrow span (Steyn, 2020)
Centralization- this refers to the power of making decision. In flat structure the decision-making
is a bit slower due to its structure on the other hands in Tall structure it goes faster.
Decentralization- in the tall structure there is higher decentralization which makes it work faster
on the other side in flat there is one person who is governing a wide number of people so
decision-making will be slower.
Contrasting between Tall and Flat organizational structure-
Communication- In tall structure there is issue of proper communication since the structure is
tall so may get difficulty while sharing ideas and transmitting views, on the other hands there are
not such barriers in Flat structure (Turi and Sorooshian, 2019)
Management work- It would be higher for Flat structure since the sole manager would be
handling mammoth number of employees under it, on the other hands in tall structure this would
be in favour.
Ability as per size- So if the size of organization is big then the most suitable one is tall
structure since it makes different levels of authority to work. In contrast, Flat is suitable for small
organization (Truant and Broccardo, 2020)
Task-3
Business functions are such activities which are being performed in an entity in order to
carry out their business, for instance HRM, Production, Operation etc. are some of the best
examples (Williams, 2022)
HRM- Human resource management is one of the most affecting function of an organization,
and if it is working in tourism and hospitality sector then there is need to work on it. If the
human resources are not well managed then would not be able to satisfy the clients.
The role of personnel is prominent due to their ability to make direct impact on the
customers, hotel and tourism industry directly deal with services where ability of employees
plays significant role. Along with success of entity if HRM is well-managed then will make
employees work with their full capacity and potential.
Production- Production management is a comprehensive phenomenon for an organization, here
all relevant aspects of productions are taken into consideration, for the entities who are engaged

in hospitality and tourism sector mostly provide their services so with better production
management can surge their level of performance (Heaton, Parlikad and Schooling, 2019)
Better production functions will help entity to enhance its capability in the market. If the
production of the company is not good then the clients won't get satisfied, which would
ultimately cause severe damages to the organization.
Operations- refers to the key practises of an organization, such as how it gets operated, how it
serves its customers, how it fulfils their requirements etc. are part of operations. In tourism sector
there are a range of such operations are performed such as services, drink, food facilities, trading,
leisure facilities, project facilities etc. (Shuradze, Bogodistov and Wagner, 2018)
If the operations are efficient then will help to business and bring positive attitude among
the personnels working, so altogether it can be concluded that all business functions are having
potential to make performance of an entity better and also affects the morale of employees.
Task-4
Organizational culture is the set of drivers which ensure rules, regulations, practises
within an entity. Tourism and hospitality industries are apparently getting skyrocketing success
form last couple of years so having drastically changing culture (Prasanna and Haavisto, 2018)
If the organizational culture is suitable to the entity then it will be easier for the entity to
serve its purposes with more effectively. As it has been seen multiple times, company with well-
structured culture notches up higher growth.
Premier Inn which is one of the biggest hospitality sector giant of UK performing with
greater effectiveness. It got 2nd rank among its competitors when it comes to culture, it is having
a very liberating culture, giving full freedom to the employees, on the other hand also practices
market culture to bring positive results and countering competitors (Attom, 2020)
The employees are well socialized so can freely work at workplace, there is no
discriminatory practises on the basis of gender, ethnicity, cast, creed, cult etc. so all the workers
may enjoy the highest level of freedom.
At the same time the internal management mechanism as conflict management, work
management, stress management all these components are well managed. It is salient reason
behind such enormous success of the organization and now it is one among top performers in
hospitality sector.

With the progress of time Premier Inn, made a range of changes in its organizational
culture so can make it suitable for its clients and can grab bigger share of the market. The entity
is now having more than 75000 hotels rooms in the nation (Sharman, Wallace and Jespersen,
2020)
Along with such greater physical presence it is having good number of clients, which
consists global or oversees people too. So from the evaluation made above it can be summarized
that organisational culture is behind success of an entity (Niedlich, et al. 2020)
CONCLUSION
Form the essay above it can be concluded that for an organization it is very significant to
have proper business structure so can make itself fostering. The essay above intensively
discussed various types of business and their advantages, disadvantages so can articulate it in
proper manner, citing examples of hospitality and tourism industry.
Then essay further compared and contrasted tall and flat structure of a business, where an
in-depth comparison was made along it, some similarities which are existing in both types of
structures were contemplated and a well-structured evaluation has been presented in attempt to
depict replica of modern organizational structures and their usefulness for the entities. Three
business functions such as HRM, production, operations were taken into consideration with
respect to their effect on functional management activities and on people within organization. At
the end, organizational culture were explained how it impacts practices or success of an entity.

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