Understanding Business Organizations - Types, Functions, Structure and Culture

This essay discusses various types of business organizations, their advantages and disadvantages, organizational functions, structures, and culture. It also explains the impact of positive culture on an organization.

Understanding Business
Organizations

Table of Contents
Understanding Business Organizations...........................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organizations means those aspects which is used in order to perform activities
that is based over buying and selling of goods or services. These organizations tends to serve its
customers with motive to earn profit and generate revenue through their products. Business
organizations are formed with the help of certain elements like business environment, nature,
strategies, management and leadership. These leads upon development of various types of
business organization according to their ownership. Business organization has different
departments that work together for making growth and success of business possible. These
functions are related to business organizations. Further, to understand business organization and
its working patterns organizations culture is developed that makes business organization achieve
ethical balance with positive environment. In the essay first paragraph discuss about various
types of business organizations and second paragraph explains about business functions. Third
paragraph tells about organizational culture. In the end organizational structures and organization
culture has been discussed.
MAIN BODY
Types of business organization with its advantages and disadvantages, in this modern
world various kinds of business organizations has been operating within particular country that
helps in developing flow of business process. These organizations are Sole proprietorship which
is one of the most commonly developed business organizations used for executing
business(Alnadawi, Abdulrahman and Omran, 2022). In this organization single owner exists
which is known as sole proprietor. In order to form such organization INHRC number is required
to be generated and name of the organization is needed to run business within market.
Management of sole proprietor is done by owner of this organization and all functions are
performed by owner only. Funds for the organizations is generated by self resources like family
members, friends or any other known person. These organizations posses certain advantages and
disadvantages which are, Advantages: Profit generated is kept by the owner himself. Another
advantage is no complex process is involved within its formation. Disadvantages: The biggest
disadvantage is related to timely arrangement of funds which impacts organizations stability
within market. Another disadvantage is management that can collapse if owner is not of practical

mindset. Partnership: The organization is based upon collaboration of two or more then two
persons with common motive to earn profit. The organizations are open to risks and includes
benefits which makes obligations formed within its operations. Under partnership organization
every partner has important to play within organization running. These organizations are not
bound by any kind of legal obligations and process of registration is easy(Baer and et. al., 2020).
The process of registration includes generation of INHRC number and then partnership
agreement is formed only for licensing or any other legal process. Management is done by
partners and all kinds of operations are performed after discussing with partners. Funding for
partnership organization is done by partners as per their investment they are allowed to take part
within activities of business. Further, advantages and disadvantages of these organizations are,
Advantages: The biggest advantages is burden is reduced and is not upon only one person.
Another advantages relates with legal obligation as partnerships firms are free from legal
complexities. Disadvantage: Conflict of interest arises resulting in dissolution of partnership
organization. If an partner dies then organization gets dissolved immediately. Private
corporation: These are those organizations which uses Private Ltd in the end of its name. These
organizations operates over private operations and has set goals with objectives which makes
organizations attain success. Also, registration process is complex and has lot of formalities to be
fulfilled. Registration process includes forming of memorandum of association and article of
association with other documents that is collected then submitted to Companies House. The main
aspects of organization is its directors as they act as representative of an organization. In this
management is handled by managers and directors of each department. Funding is done with the
help of bank loan and debentures with various other credit providing institutions which are
private in nature(Buengeler and et. al., 2020). The organizations has certain advantages and
disadvantages which are, Advantages: As per this corporation owner and organization is
separate from each other that protects organizations from any kind of problem. Another
advantages of private organizations are able to make business grow on large scale.
Disadvantage: In this divide ownership of private restrain organizations which makes process of
operations very complex in nature. Public organizations: These are those organizations that
uses Public Ltd within its end and its shares are not distributed in public. The registration process
of such organizations is very complex and requires sign of all owners in order to proceed with
business. Management of such organizations is done by shareholders and multi-pal owners of

organizations. Funding is done by government or any other government finance institution.
These organizations are known for providing subsidies and prefer, public welfare operations.
There are various advantages and disadvantage of these organizations which are, Advantages:
Public corporations makes formulation and policies formed that makes public welfare activities
performed effectively(Campos, 2021). In public corporation less time is taken for establishment
since bureaucratic delays are minimized. Disadvantages: The organization enjoys immunity
from any kind of inquiry which makes work done as per owners will. Another disadvantage is
loss is faced by government organization due to subsidiary provided. After making discussion
about statistics and various situations it has been marked out that nest form of business
organization is partnership that is easy to form and no complexity is included within it.
Organizational Functions: Business organizations has various kinds of departments that makes
business operations work in effective manner. These departments posses various functions which
are known as organizations functions. These functions are divided according to departments that
are human resource, production and manufacturing functions. Human resource functions is
based over selecting candidate as per requirement of particular job role or project. They are
responsible for employees safety and health of an organization. Premier Inn is able to selected
qualified and talented candidates for organization. Then comes management functions which is
based upon planning and forming strategies which is required for making organization achieve
goals and objectives. Management functions makes Premier Inn hotel manage its strategies and
prepare plan as per existing market scenario. Production function these are most important
functions as they increases production capacity which makes organizations product produced
with faster pace. Premier Inn with the helps of this function is able to produce quality services
that creates customer satisfaction.
Organizational Structure and its different types: Organizational culture means those
perspectives which is based over aspects posses within business organizations and its functions.
These structure are based over shaping an organizations basic structure of an organization(Pan,
and Verma, 2022). The concept relies upon various kinds of operations that is performed as per
nature of business organization. There are various kinds of business organization structure that is
present which are as follows, Horizontal shape: This is based over diverse set of controls and
team which makes various kinds of aspects covered in more effective manner. It is based over
special department that makes shape inspired over supervision and makes organization shaping

possible. There are various advantages and disadvantages which are Advantage: According to
this structure personnel is able to work over great responsibilities. This shape open
communication possible within an organization. Disadvantages: It creates confusion over facts
that employees do not have smooth and effective supply of employees which makes abilities and
knowledge improved(Van Andel, 2020).Create confusion considering the fact that employees do
not have a smooth supervisor to document to supply employees with more generalized abilities
and knowledge. Functional shape: The shape is based over features that makes various kinds of
abilities and skills posses by an employees working within an organization. In each department
that manages separately there are various advantages and disadvantages of these structure.
Advantages: In this various kind of differentiation existing over providing authority and duty.
This leads upon assigning of memories with unique tasks that makes work to be finished without
any problem. Disadvantages: Innovation are crucial changes that is possible with paperwork
making employees act in interest of department and region of company as whole.Organisational
culture and impact of positive culture on an organization: Organisational lifestyle is an
essential issue that gives with behavioural patterns posses with the useful resource of the usage
of an employees jogging interior an enterprise corporation. It has an inclination to makes
corporation environment effective closer to developing productivity interior employees(Wan,
Rieckmann and Hou, 2021). Organizational lifestyle is break up into issue that is excessive first-
class and negative. Under excessive first-class impact enterprise corporation is able to
improvement with purpose of over all growth. Since excessive first-class organisational form
makes employees feel stimulated and green with the useful resource of the usage of enhancing
their behaviour closer to jogging lifestyle. Positive organisational lifestyle develops range which
makes artwork lifestyle greater effective. Negative organizational lifestyle makes challenge
overall performance reduced interior employees that makes artwork capacity reduced. Thus it is
miles been analysed that artwork lifestyle ought to be excessive first-class interior an enterprise
corporation like Premier Inn.

CONCLUSION
From the above dialogue it is been marked out that commercial enterprise enterprise are
the ones entities which sells services and products to their customers. These enterprise leads in
the direction of enhancing way of life of an individual. In the essay numerous kinds of
commercial enterprise businesses are mentioned with their benefits and disadvantages. Also,
businesses shape is defined with commercial enterprise businesses functions. In the give up
organizational subculture and effect of effective subculture over an enterprise is defined.

REFERENCES
Books and Journals
Alnadawi, A.A., Abdulrahman, M. and Omran, F., 2022. Opportunities and Challenges of
Applying Electronic Human Resources Management in Business Organizations an
Applied Study in the Telecommunications Sector, Jordan. Digital Economy, Business
Analytics, and Big Data Analytics Applications, pp.223-235.
Baer, M and et. al., 2020. Broadening Our Understanding of"" Doing Justice"" in Organizations.
In Academy of Management Proceedings (Vol. 2020, No. 1, p. 13821). Briarcliff
Manor, NY 10510: Academy of Management.
Buengeler, C and et. al., 2020. Advancing the Understanding of Agility and Agile Methods in
Organizations. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 14365).
Briarcliff Manor, NY 10510: Academy of Management.
Campos, L., 2021. Understanding Change in International Organizations Across Time and
Spaces: The Rise of UN Country Teams. Global Policy, 12, pp.55-67.
Pan, F. and Verma, R., 2022. Service innovation process in creative-intensive business services
organizations. In Research Handbook on Services Management (pp. 71-87). Edward
Elgar Publishing.
Van Andel, W.J., 2020. Balancing the creative business model: essays on business models of
creative organizations within and between institutional fields (Doctoral dissertation,
University of Antwerp).
Wan, H., Rieckmann, J.M. and Hou, G., 2021. A Simulation Research on Innovation-Driving
Evolution of Internet Business Organizations. In IEIS 2020 (pp. 309-323). Springer,
Singapore.