Different Types of Organizations and Their Functions

This presentation provides an overview of different types of organizations, including private, public, and voluntary organizations. It discusses the legal structure, size, and scope of these organizations. Additionally, it explores the interrelationship between different functions within organizations.

Business and Business
Environment

Table of Content
 Introduction
 Different types of organizations
 Purpose, size and scope of organizations
 Legal structure of organizations
 Different Functions of Sainsbury
 Interrelationship between different types of functions
 Conclusion
 References

Introduction
Business environment refers to be most important aspect for
any organisation, which forms on the basis of nature and size
of operations. Factors like suppliers, media, competitors,
customers and changing technologies makes it dynamic for a
firm. This presentation is going to demonstrate different types
of organizations, with their size and scope, including legal
structures. Along with this, interrelationship among different
functions is also discussed.

Different types of organizations
Organisations can be categorised on the basis of different types and
purpose, viz. public sector, private sectors and voluntary. Firms under these
sector have run business on different-different purpose as described below
–
•Public organisations
•Private organisations
•Voluntary organisations

Private organization
Firms which mainly run business with profit motive purpose and acquire their funds throughFirms which mainly run business with profit motive purpose and acquire their funds through
bank loans, financial institutions and investors, are come under the category of private sectors.bank loans, financial institutions and investors, are come under the category of private sectors.
For example – Sainsbury is one the largest retailer of UK that operates privately more thanFor example – Sainsbury is one the largest retailer of UK that operates privately more than
1,415 stores on different location across the country.1,415 stores on different location across the country.
Mission and Purpose:Mission and Purpose:
Sainsbury’s is considered second largest supermarket chain that mainly operate its business toSainsbury’s is considered second largest supermarket chain that mainly operate its business to
meet high satisfaction level of customers, by providing them best services with less waitingmeet high satisfaction level of customers, by providing them best services with less waiting
time. As presently, this firm has its stores only in UK marketplace, therefore, to gain hightime. As presently, this firm has its stores only in UK marketplace, therefore, to gain high
competitive advantage, it seeks to move business at global level is the main objective ofcompetitive advantage, it seeks to move business at global level is the main objective of
respective firm.respective firm.

Legal Structure of Private firms
• Sole proprietorship: Private firms who operate business in sole proprietorship, used to
manage, control and run entire operations by own. Therefore, due to single ownership,
sole proprietors are liable for overall risk and profitability in business.
• Partnership: Under this type of legal structure, two or more partners establish a
business by investing the own capital, where they sign a written contract. Therefore, all
business partners are liable for overall profit or loss in business, as per their investment
ratio. Sainsbury is having this legal structure, where John James Sainsbury establish
business in partnership with his wife.
• Company: In this type of structure, company’s shares are distributed to general public
with aim to get their funds for operating business successfully, so that higher
profitability can be earned.

Size and Scope of Private firms
Size: Sainsbury offer a wide variety of supermarket products and
services across the UK, where it has opened more than 1415 shops
till now. It is headquartered in London and established first store in
1869.
Scope: Sainsbury is mainly concerned to satisfy every demand of
customers on time, by delivering them high quality of services.
Now, considering the increasing competitiveness, this firm is going
to expand its business at global level, by opening its stores in
emerging market of other countries.

Public organization
It includes those organisations which are either fully or partially run by authorities ofIt includes those organisations which are either fully or partially run by authorities of
government with motive to meet basic necessities of public, by offering basic them products orgovernment with motive to meet basic necessities of public, by offering basic them products or
services on minimum rates. Entire functions and operations of public sector are controlled byservices on minimum rates. Entire functions and operations of public sector are controlled by
government only. NHS is one of the best example of public organisation, that mainly rungovernment only. NHS is one of the best example of public organisation, that mainly run
business for well-being of community people.business for well-being of community people.
Mission and Purpose of NHS:Mission and Purpose of NHS:
National Health Service (NHS) operates their functioning with a purpose to provide health careNational Health Service (NHS) operates their functioning with a purpose to provide health care
services to citizens in United Kingdom along with high quality care for all individuals. Theservices to citizens in United Kingdom along with high quality care for all individuals. The
main mission of this public organisation is to provide best quality of Healthcare services onmain mission of this public organisation is to provide best quality of Healthcare services on
time to its patients, where it has joined digital partner to increase accessibility of business intime to its patients, where it has joined digital partner to increase accessibility of business in
local and rural areas also.local and rural areas also.

Legal Structure of Public firms
• State Government: Firms that operate business under this type of are either wholly or
partially administered by authorities of state government.
• Local Government: Entities that run business for local welfare are managed and
controlled by parties of local government.
• Central Government: Organisations having this structure are run under guidance of
central government authorities. NHS is operated its business within legal structure of
central government.

Size and Scope of Public firms
Size: NHS is publically funded organisations, which is established in 1948,
under four separate systems that are – NHS Wales, NHS England, NHS
Scotland and HSC in Northern Island. Therefore, due to operate business
at large level, it has given employment to more than 1.5 million of people,
that helps in providing services to patients within time.
Scope: NHS is mainly focused on well-being and keeping people healthy,
therefore, it has brought entire new medical technologies and machines, in
order to provide services to as much as many people, by improving their
quality of life.

Voluntary organization
It includes those organisations who work with purpose to achieve common goal i.e. provideIt includes those organisations who work with purpose to achieve common goal i.e. provide
mankind services for improving vulnerable life of people. For this purpose, they get fund frommankind services for improving vulnerable life of people. For this purpose, they get fund from
private and public organisations, then invest the same for welfare of society. Oxfam is one ofprivate and public organisations, then invest the same for welfare of society. Oxfam is one of
the voluntary organisations that operates more than twenty charitable firms to reducethe voluntary organisations that operates more than twenty charitable firms to reduce
vulnerabilities.vulnerabilities.
Mission and Purpose of Oxfam:Mission and Purpose of Oxfam:
The main purpose on which Oxfam operates its business is to reduce poverty by helping peopleThe main purpose on which Oxfam operates its business is to reduce poverty by helping people
to earn for their livelihood. It also focuses on providing education to vulnerable societies andto earn for their livelihood. It also focuses on providing education to vulnerable societies and
their children as well as train them to learn basic skills for improving own condition. Totheir children as well as train them to learn basic skills for improving own condition. To
increase and improve living standards of vulnerable and poor people, is the only mission ofincrease and improve living standards of vulnerable and poor people, is the only mission of
Oxfam.Oxfam.

Legal Structure of Voluntary
firms
• Limited Organisation: This type of structure, owners have limited share of their
company.
• Unincorporated Organisation: In this type of structure, partners sign an agreement to
give commitment to work in collaboration and perform every responsibility for welfare
of society.

Size and Scope of Voluntary
firms
Size: To offer mankind services and reach towards vulnerable
societies, Oxfam operates 20 independent charitable organisations.
Scope: As it is a voluntary organisation, they are not having any
particular structure as in this individual mainly perform their work
from different locations. Along with this scope of entity is to
enhance their services area as to satisfy maximum individuals.

Different functions of
Sainsbury
Human resource department – It is one of the main function of Sainsbury,
that concerns more on bringing new talent at workplace, with retaining
experience staff. For this purpose, other than recruitment and hiring
procedures, HR managers of respective firm concerns more on talent
management, so that other functions like sales & marketing can also
operate effectively.

Interrelationship between
functions
As there are various functions present in business of Sainsbury that performs
different-different activities to operate successfully. But it has evaluated
that entire functions are somehow inter-related with each other. For
example – HR Department helps other functions like marketing, finance,
operations and other, in getting talented and trained workforce to operate
their activities. Under this process, decision regarding with hiring and
placing of workers on various position in sales, marketing, finance and
other, is taken by HR managers only. Similarly, finance managers help
HR, marketing and other departments in getting funds for operating their
functions. Therefore, decision for budget for performing each and evert
activity is taken by Finance managers of Sainsbury.

Conclusion
From the above given information, it can be summarised that every
organisation operates in a dynamic and flexible business environment
and various forces are there, that affect the functioning of enterprises
and their decision making process. Various organisations operate in
business environment with their own purpose and structure.

References
 Manikowske, L., Lee, J. and Park, K., 2019. Use of Social Media by
Small Fashion Retailers and Their Customer Engagement. International
Journal of Costume and Fashion, 19(1), pp.51-68.
 Kurnianto, A. M. and et. al, 2019. Marketing Strategy on the Project
Planning of Retail Business for Garage Shop. International Journal of
Multicultural and Multireligious Understanding, 6(1), pp.217-228.
 Jiang, Y. and et. al., 2019. From clicks to bricks: The impact of product
launches in offline stores for digital retailers. Journal of Business
Research.

Thank You