Types of Business, Organizational Structure, Business Functions and Organizational Culture

This essay discusses the definition, advantages and disadvantages of different types of business, comparing and contrasting tall and flat structure, discussing different business functions and their impact on organization, defining organizational culture and positive culture impact on organization.

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Definition and advantages and disadvantages of different types of business.............................3
Comparing and contrasting tall and flat structure.......................................................................4
Discussing different business functions and their impact on organization.................................5
Defining organizational culture and positive culture impact on organization............................6
CONLUSION..................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business entity is termed as the entity that is formed in order to earn the profit by having the
selling and rendering of services. This report will outline the definition, advantages and
disadvantages of the different types of business. Further this report will outline the comparison
between the tall and flat structure of the organization by using the tourism and hospitality
examples. This report will also outline the different business functions and their impact on the
functional management of the organization. moreover this report will also put focus on the
organizational culture and the positive culture impact on the organization.
MAIN BODY
Definition and advantages and disadvantages of different types of business
Sole trader: The sole trader is the single owner of the business that is also known as sole
proprietorship. This is one of the easy business structures to be set up as less capital is required
by the person (Koudelková, 2020). The single person used to run and own the overall
functioning of the business. The profits earned by the person are kept by him as he is the single
owner of the business.
Advantages Disadvantages
 All profits are kept by the single
person.
 Registration is simple and easy.
 Complete control by individual
(Jones and Talbott, 2021).
 The liability is unlimited as single
owner is there.
 Less capacity to raise the capital.
 All the responsibility is on
individual.
Partnership firm: The partnership business refers to the business which used to consist
of two or more than two person who used to pool their resources together and agrees to
share the risk, loses and profits (Gavin and et.al., 2018). This is one of the best business
types as the funds are pooled by many individuals which help to raise the capital in the firm.
This is easy to establish the partnership firm and more capital is available.
Advantages Disadvantages

 Less legal and formal obligations are
required.
 It is easy to set up the business.
 The burden of the person can be
shifted from one to another (Bird and
et.al., 2020).
 The formed business has no spate
legal entity.
 The liability of the partners is
unlimited (Fitria, 2018).
 The profits gained are distributed
among partners.
Limited Company: This is basically the general form of formation that used to limits the
amount of liability that is undertaken by the shareholders company (Jenkinson, 2020). The
company has to own separate legal entity that means the business and managers have their own
identity. The profits earned are distributed in the form of dividends to the shareholders.
Advantages Disadvantages
 The liability of the person is limited.
 The existence of the company is
perpetual (Hassan, Mizanuzzamam
and Islam, 2020).
 The management is very proper and
work done accordingly.
 There is lack of secrecy as company
has to update its profits.
 More restrictions in order to from
company (Lee and Day, 2019).
 Members has no personal interest in
the company.
Comparing and contrasting tall and flat structure
Tall organizational structure Flat organizational structure
This type of structure is basically taken by the
company who used to have larger and complex
work. There are different type of layers of
management between the front and upper level
of management (Harney and Alkhalaf, 2021).
The managers used to have different
employees on which responsibilities are given
and help to have greater supervision on the
employees. The task divided among the
As compare to tall structure, the flat
organization has less level of management that
concludes that company has short chain of
command. The employees in this type of
structure are encouraged to work rather than
only working with the responsibilities
(Podgorodnichenko, Edgar and McAndrew,
2020). They are also taken as the part of
decision-making of the employees. This makes

employees by managers makes their work
easier and helps them to gain the profits in the
market.
For example, Hilton is having the tall
organizational structure as it is the big and
having many branches over the globe. This
helps them to have the proper management of
the company in order to provide best services
(Renkema, Bos-Nehles and Meijerink, 2020).
the employees to work by having the good
productivity and profitability for the company.
For example, McDonalds is having the flat
structure of the organization and have few
levels of command. This makes the employees
to work with greater productivity and helps the
company to earn good profits.
Discussing different business functions and their impact on organization
Human Resources management: The Human resources management is termed as the
strategic approach that helps the company to have the effective and efficient management of the
employees working in the company. This function helps the company to have the proper
functional management of the activities and makes them to gain the competitive advantage in the
market (Andersson and et.al., 2019). This is the proper division of the employees that helps to
maximize the performance of the employees that helps them to achieve strategic objectives. By
having the proper HRM in the company helps the company to have better practices related to
recruitment, training, career planning and job creation.
Production function: The production function refers to the process of having the proper
management of the organizational activities in order to furnish the products and services. This
used to involve the planning, organizing and controlling of the activities related to the
production. By having the proper production function it helps the company to have the proper
management of the activities and manage the people in the company (Ellerbrock and et.al.,
2018). The main aim of this production function is to produce the goods and services by having
the right quality and quantity by minimizing the cost. By having proper function of the
production helps the company to face the competition effectively in the market. For example,
Starbucks have the proper management of production that helps them to attract more customers
and have good profitability.
Operation Function: The operation management of the company refers to the
administration of the practices of the business that helps the company to create the great level of

efficiency in the organization (García de Soto and et.al., 2019). this management function helps
the company to have the proper functioning of the activities and have best employees in the
company. By having the best employees it will helps them to convert raw materials into the
finished goods. This will help the organization to have better productivity and profitability in the
competitive market. The main function of the operation management is to create the best
products and services that are produced by the skilled labours in the company. The company
must also focus on the quality, speed, flexibility and cost that help them to have better
productivity in company.
Defining organizational culture and positive culture impact on organization
The organizational culture refers to the collection of the different values, expectations and
the practices that are guided and inform to the all the members of the company. By having the
good organizational culture helps the company to have the more employees that helps them to
have success in the company (Paais and Pattiruhu, 2020). The culture of the company depends
on the structure followed by the company. The good organizational structure used to define that
the company is having better organizational culture. The god organizational structure helps the
company to have strong recognition of the employees and helps them to have better work. This
used to encourage the employees and makes them feel valued by taking part in the decision
making.
The positive cultures have the good impact on the working of the employees. This makes the
company to have increase in the employee’s satisfaction by having the better jobs (Elsbach and
Stigliani, 2018). The staff of the organization must be satisfied with the environment that helps
to motivate them and have the greater sense of loyalty. The positive workplace used to improve
the teamwork, raises the morale of employees, increases the efficiency and production that helps
them to have retention of the employees. The positive culture used to gain the better reputation in
the market and makes the staff to work effectively (Spicer, 2020). The company having the
positive culture used to attract the good and skilled staff that helps the company to step further in
the future. By having the good team work helps the employees to work with good productivity
and helps them have the optimum utilization of resources in the company. This will enhance the
rpofits and increases the goodwill of the organizations in the market.

CONLUSION
From the above report it is sump up about the definitions and advantages and disadvantages
of the types of business. This report has also evaluated about the between the tall and flat
structure of the organization by stating the tourism and hospitality examples such as Hilton os
having tall structure. Further this report has also described about the different business functions
and their impact on the functional management of the organization. At last this report has
described about the organizational culture and the positive culture impact on the success of
organization.

REFERENCES
Books and Journals
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organizational structures. Scandinavian Journal of Management. 35(1.) pp.36-45.
Bird, M. and et.al., 2020. Preparing for patient partnership: a scoping review of patient partner
engagement and evaluation in research. Health Expectations. 23(3). pp.523-539.
Ellerbrock, C. R. and et.al., 2018. An examination of middle school organizational structures in
the United States and Australia. Education Sciences. 8(4). p.168.
Elsbach, K. D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and
framework for future research. Journal of Management. 44(6). pp.2274-2306.
Fitria, H., 2018. The influence of organizational culture and trust through the teacher
performance in the private secondary school in Palembang. International Journal of
Scientific & Technology Research. 7(7). pp.82-86.
García de Soto, B. and et.al., 2019. Implications of Construction 4.0 to the workforce and
organizational structures. International Journal of Construction Management. pp.1-13.
Gavin, M. C. and et.al., 2018. Effective biodiversity conservation requires dynamic, pluralistic,
partnership-based approaches. Sustainability. 10(6). p.1846.
Harney, B. and Alkhalaf, H., 2021. A quarter‐century review of HRM in small and medium‐
sized enterprises: Capturing what we know, exploring where we need to go. Human
Resource Management. 60(1). pp.5-29.
Hassan, M. S., Mizanuzzaman, M. and Islam, K. A., 2020. The Effects of Training to the
Employee Performance and Development: A Study of Fareast Islami Life Insurance
Company Limited, Bangladesh. International Journal of Business and Management
Future. 4(2). pp.17-40.
Jenkinson, M. W., 2020. The audit of a public limited company. The Evolution of Audit Thought
and Practice. 18.
Jones, S. H. and Talbott, S., 2021. Sole Traders? The Role of the Extended Family in
Eighteenth-Century Atlantic Business Networks. Enterprise & Society. pp.1-30.
Koudelková, P., 2020. Social networks and their influence on the prosperity and growth of small
businesses and sole traders through paid and unpaid promotion.
Lee, J. Y. and Day, G.S., 2019. Designing customer-centric organization structures: toward the
fluid marketing organization. In Handbook on Customer Centricity. Edward Elgar
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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
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Podgorodnichenko, N., Edgar, F. and McAndrew, I., 2020. The role of HRM in developing
sustainable organizations: Contemporary challenges and contradictions. Human Resource
Management Review. 30(3). p.100685.
Renkema, M., Bos-Nehles, A. and Meijerink, J., 2020. Implications of self-managing teams for
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Spicer, A., 2020. Organizational culture and COVID-19. Journal of Management Studies. 57(8).
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