Business Organizations: Types, Structures, Functions, Culture, and Industry Practices

This essay provides an overview of different types of business organizations, including sole trader, partnership, and limited liability company, and their advantages and disadvantages. It also compares different organizational structures, such as hierarchical, functional, and horizontal. The essay discusses various business functions, including human resource management, production management, and operation management, and their impact on functional management activities. Additionally, it defines organizational culture and its positive impacts on the success of an organization. Finally, the essay provides examples of industry practices from various organizations.

Essay business organizations

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Types of business and advantage and disadvantage....................................................................3
Different organizational structure................................................................................................4
Various business function and impact of their functional management activities.......................5
Definition of organizational culture and positive impacts on the success of organization. ........5
Examples of industry practices from various organization. ........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Understanding of business environment and organization that helps for make the
organization realistic plan and also ensure them with having effective implementation. It also
helps the business for better identification of threats and opportunities. This report will examine
about the various types of business function with their advantages and disadvantage. Along with
this compare about the organizational structure. This will also discuss the different business
function and organizational culture with positive impacts on succession of organization. Also
include, industry practice in organization.
MAIN BODY
Types of business and advantage and disadvantage
Sole trader company- this is known as type of unincorporated entity which is owned by the
individual or by one person. It is also simple legal form of business entity. In other words, the
identity about the owner which is coincides within the business entity. Along with this, the
business man of the entity is being fully liable for any liabilities that are incurred by the business.
Advantage of sole trader: Easy and inexpensive process, Tax advantage, Few government
regulation. Disadvantage: Unlimited liability of the owner, Limitation on capital raising,
Difficulty in obtaining funds.
Partnership company- A partnership is refers to personal arrangement of two or more for
managing and operating the business profits and their shares. This is also known as business
partners and agree to cooperate the advance with their mutual interests (Korchak, 2017).
Advantage of partnership business: more capital is available for developing business, there is
limited external obligation for running business and having greater borrowing capacity.
Disadvantage: in this liability of the partner that require for the debts of business which is
limited, each partner is agent of the partnership and there is also risk of disagreements among the
management and business partners.
Limited liability company- It is one of the most common legal entities for the business and all
partnership is generally being responsible for companies and which are being subjected to
unlimited liabilities for the business debts. Advantage of LLC: no restriction on the number of
members which are allowed, owner that are not personally responsible for business liabilities and
debts, pass through having taxation. Disadvantage: ownership which is typically harder to

transfer than having with the corporation, having very limited life for business and more
expensive from the sole trader of partnership companies.
Different organizational structure
Organizational structure that defines about how activities which includes the allocation,
coordination, directed, supervision towards having the achievement of organization goals and
objective. Furthermore, organizational structure that also affects the organizational foundation
and action on having their standards operating routines and procedures. Here are some
organizational structure as:
Hierarchical structure-
The pyramid about the organizational chart which is referred to hierarchical organizational
structure. It is most common and keep the chain of command to goes with the manager, leader
and also work with each employee that has supervisor. Motivates employee with having the clear
path and keep the chances for promotion activities (Chen and et.al.,2021). Give each employee
speciality and create the better working relationship among the same development. For example,
M&S which prefer more towards the hierarchical structure and keep their each employee for
working in structure.
Functional organization structure-
It is similar with the hierarchical organizational structure and the organization which starts with
the functional structure. In this divided the position with having high level of responsibility.
Along with this, it also keeps the organization to work according to organized with having the
specific skills and their correspondence function for the company. From the above organizational
structure this seems to better structure through which the work that have been divided according
to the responsibility and make sure for completion work about goals and objective. For example,
Tesco organization which mainly work with functional structure.
Horizontal organizational structure-
In compare with other organizational structure, this fits at the top companies and also have few
levels for working between the upper management and maintain the staff level employees
(Bisson And et.al., 2022). Many of business that are likely to be used the horizontal structure
before developing the different departments and encourage less supervision and more
involvement for all workforce.

Various business function and impact of their functional management activities.
Human resource's management- this department in organization which is highly responsible
for the managing employee in company. While this also include the identification for the
employee needs for their company, training and developing, handling termination, managing
industrial relation (Lozada-Contreras, Orengo-Serra and Sanchez-Jauregui, 2021). HRM practice
that usually have the impacts that creates about the sole purpose for developing the strong link
between the employee and organization. A firm that can easily help for using those practice
helping the workforce for developing their skills. Along with this also help in contributing the
organization intellectually developments.
Production management- This usually deals within the creation of services and good through
using the application of having business concept. It also has the primary objective, in which the
employee, company resources that helps for producing the goods and services to fit the market.
Impacts over the function business management and workforce in organization, this develops the
physical relationship between the outputs and inputs. Along with this depends on having
different entities which is using in production process.
Operation management- This is probably familiar with having the term of production
department as well. As this is highly responsible and keep their positive impacts on the function
management and workforce in employee, it helps for converting inputs such as raw material and
components, maintain production levels, achieving the high level of efficiency (Shukla and Adil,
2021). Moreover, providing the consistent and good services if business linked with the services'
organization. This also keep controlling order supplies and make the proper use of resources
allocation.
Definition of organizational culture and positive impacts on the success of organization.
Organizational culture- This is defined as the underlying assumption, beliefs, ways for
interacting or values that also lead for contributing the unique psychological and social
environment of organization. While the organizational culture that includes the organization
experience, philosophy, expectation as well as the value for guiding the member behaviour and
expressed member for having self-image, interaction, inner working and future expectation (Zeb
and et.al., 2021). Culture which is based on having shared about the customs, written and having
their unwritten rules and also developed over time that are being considered valid. Therefore,
organizational culture which include the organization vision, values, symbols, assumption, habits

and beliefs. In developing for organizational culture leaders which play the effective role for
having communication and creation of their workplace. The behavioural framework that could
lead within having the higher job satisfaction when an employee feels like leader and helping
other people for completing the goals. From the perspective, organizational culture that can also
include the leadership and having the job satisfaction about all linked (Sayyadi Ghasabeh, 2021).
Organizational culture which keep the positive impacts for succession in organization and this
could help for working more on increasing the employee engagement, decreasing turnover,
elevated productivity, transformational power, top performers and so on. It is also important for
having the better organizational culture through which the top management should respond on
any symbols etc. and also being expected for having the response in proper way. Employee
which have the vital role for creating the strong culture, recruiting and selecting the applicants
who will share the organization thrive and beliefs in culture (Wong, 2021). Organizational
culture which keep about the top performance, team work, resilience and so on.
Examples of industry practices from various organization.
Industry practice are those accounting problem which are unique from some particular
industry. Along with this also used normal accounting reporting and practice. While this also
include the manufacturing and designing activities, that can make the use of production with the
high quality for having the specific marketing group (Gayen and Kaushik, 2021). The industrial
practice that is being depends on the manufacturing with the various types of products and
services as they make, the largest market group, or the scale of production. For example, the
retailing merchandising that could be make the break for succession of store. This is also
implementing correctly with having the right products for their customer and creating the
excellent in-store experience. The retailing sector which must go within speak to customer, this
can make the information always come straight from the shop. Along with this also keeping the
employee for working together and also bringing out the better communication among them. The
retailing industry, in present time is using more and more digital concepts through which they
can make the customer feel special to invite for joining the exclusive loyalty. The industry that
can work more for keeping their customer attraction and also keep their focus towards achieving
the goals and objective (Hasan, 2021). Moreover, the employee that can work towards having the
proper communication among them and ensure them for working with training and development
concepts. The industry must be required for get socially, that could be easier for them in

achieving the targets through buying out their products in using social media. Multichannel
retailing sector, which could bring about the huge opportunities in simply selling the products
and services with more than on platform.
CONCLUSION
From the above report it had been concluded that, function business management for the
organization seems to be important and also keep the organization for working with proper way.
Along with this, organizational culture and structure which is basically, helpful for the business
and also make sure for having proper department for completion targets.

REFERENCES
Books and Journals
Bisson, L.F. And et.al., 2022. Leadership and Organizational Structure. In Uprooting Bias in the
Academy (pp. 81-95). Springer, Cham.
Chen, Y. and et.al., 2021. E-procurement system adoption in local governments: the role of
procurement complexity and organizational structure. Public Management Review,
pp.1-23.
Gayen, D.K. and Kaushik, T., 2021. People Centric Digital Transformation for Organization
Excellence and Business Success. HUMAN RESOURCE MANAGEMENT
PRACTICES FOR INDUSTRY 4.0, p.22.
Hasan, A., 2021. Impact of Development-oriented HR practices on Organizational Performance
in Information Technology Industry. PIMT Journal of Research. 13(3).
Lozada-Contreras, F., Orengo-Serra, K.L. and Sanchez-Jauregui, M., 2021. Adaptive customer
relationship management contingency model under disruptive events. Journal of
Advances in Management Research.
Sayyadi Ghasabeh, M., 2021. Transformational Leadership: Implementing a Cultural Approach
in Organizations. The Journal of Values-Based Leadership. 14(1). p.9.
Shukla, G.P. and Adil, G.K., 2021. A four-stage maturity model of green manufacturing
orientation with an illustrative case study. Sustainable Production and Consumption. 26.
pp.971-987.
Zeb, A. and et.al., 2021. The competing value framework model of organizational culture,
innovation and performance. Business Process Management Journal.
Online
Korchak, J., 2017. Advantages and disadvantages of a partnership business. [Online]. Available
Through : <https://www.informdirect.co.uk/business-management/partnership-business-
advantages-and-disadvantages/>
Wong, K., 2021. Organizational Culture: Definition, Importance, and Development. [Online].
Available Through : <https://www.achievers.com/blog/organizational-culture-
definition/>