Importance of Accounting for Business PDF

How Business Operate

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Types of organization in public and private sectors................................................................3
2. Different structure...................................................................................................................3
3. Impact on economic environment...........................................................................................4
TASK 2............................................................................................................................................4
1. Importance of accounting........................................................................................................4
2. Different function of HR department......................................................................................4
3. Key feature of employment legislation...................................................................................4
TASK 3............................................................................................................................................5
1. Profit and Loss account ..........................................................................................................5
TASK 4............................................................................................................................................5
1. Own and others role in a team.................................................................................................5
2. Stages of team development....................................................................................................6
3. Motivation theories.................................................................................................................6
4. different types of leadership style...........................................................................................8
TASK 5............................................................................................................................................8
1. Impact of customer service.....................................................................................................8
2. Benefits of customer profiling................................................................................................8
CONCLUSION................................................................................................................................8
REFERNCES...................................................................................................................................9

INTRODUCTION
Business operation play crucial role in business environment. The report describe
different types of organization found in public and private sectors in UK and also explain how a
company is affected by global economic environment. It also explain importance of accounting
for business and describe different function carried out by HR department. The report also
interpret the information on profit and loss account. It also present different stages of team
development and describe the impact of customer service on a business success.
TASK 1
1. Types of organization in public and private sectors
Public Sector: Those sector which are owned by government is known as public sectors.
Their motive is to serve for public and public enterprises usually do not mean to earn money
from the public. There are various types of public sector in UK such as Cambridge City Council,
it is a institution which is governed by government and different charity run for small age
children (Lynn and Brewster, 2018).
Private Sector: This sector is run by private individuals and groups and their mean is to
earn large amount of profit. Private sector do not contributes to the economy of UK. Some
examples of private sectors are TESCO, which is a leading company in UK who offer variety of
products.
2. Different structure
Functional Structure:
 This structure is beneficial for small group of business and through this structure each
department of an organization can search to find out talents and knowledge of worker.
 There is wide variation in each sector because of lack in coordination and communication
between departments (Buchanan and McCalman, 2018).
Divisional Structure:
 This structure is helpful for large companies such as in private sector who operate huge
geographic area. This structure is beneficial because it help to met the need rapidly.
 It need more time and it is quite costlier that is why many companies usually avoid this
structure.
Matrix Structure
 It is a mixture of both structure and usually used by multinational companies.

 This help to create power in all organization because it follow dual management system
(De Vito and et.al., 2018).
3. Impact on economic environment
 Local economic factors such as high employment rates affect the profit and price of
TESCO. It also affect its marketing opportunities and performance in local markets.
Different substitute affect the demand of product and services of TESCO.
 Having strong retail service TESCO create so many rivals against it and due to low price
of its product it faces loss in its national economy (Pratheepkanth, 2018).
 TESCO affect the global economic environment such as manufacturing facilities vary
from country to country and cheap labor, low taxes in foreign countries force TESCO to
establish facilities in other countries.
TASK 2
1. Importance of accounting
To run a business in positive direction it is necessary to provide accounting information
because it help in decision making and it gives financial information of a business. Accounting
prevents the misuse of asset and help in increase in profit and control cost and overall increases
the efficiency of management system.
2. Different function of HR department
 They hire new employees for a business through interview.
 HR department make healthy relation with their employees (Lynn and Brewster, 2018).
 They also provide leadership training and professional development skills.
 Payroll and different benefit of employees are also comes under HR department.
3. Key feature of employment legislation
 Employment legislation support age discrimination
 Its main feature is to prohibits discrimination based on race, sex, gender and religion.
 It supports minimum wages and equal pay to all the workers or labors (Waniganayake
and et.al., 2018).
 It also state to provide grievances to employees
TASK 3
1. Profit and Loss account

From the above profit and loss account, the net income shows that company is in profit
during a year and through this account, the financial status of a company can be determine and it
is second stage of final accounts. Gross profit shows on credit side show the company is in
profit and on the left side income shown during a year and on the left side all the expenses are
shown which incurred during a year.
TASK 4
1. Own and others role in a team
To lead a team, I should have best leadership qualities which help to motive my team
members and a good communication skills will also help to create positive environment.
Coordination and collaboration between my team members also enhance the performance level
and being a good team leader I always support them and resolve the problems face by the
members (Pratheepkanth, 2018). Team members should be positive towards their roles and
responsibility because it will help them to stuck in a team for longer time. I have strong confident
towards my work but there is lack of confidence between my team members.
2. Stages of team development Forming: it is a first stage where whole team members introduces themselves in very
polite and pleasant manner. During this stage member's skill, background and project
goal can be discussed (Yazdifar and et.al., 2018).
Illustration 1: P & L account

 Storming: Under this stage, make good relationship with all the members and then allot
task to each member. Norming: during this stage, members start notice and appreciates their strength and then
groups start grooming. Performing: it is a success stage and members of a team are confident about their work
and familiar with their projects (Lynn and Brewster, 2018).
 Adjourning: this is also called mourning because team disband after the completion of
project and members feel sad.
3. Motivation theories
 Maslow: this theory explains all basic need of human into hierarchical manner such as
describe in an image
Advantages: help marketers to focus on specific need of their customer
Disadvantages: there is no way to measure the satisfaction level of customer.
 Herzberg: this theory main focus on job dissatisfaction and proves that job is not
necessary to satisfy the need of job satisfaction (De Vito and et.al., 2018).
Advantages: help to increase the satisfaction level and hygiene factors among people.
Disadvantages: motivate can change the lifestyle of an individual.
Illustration 2: Maslow motivational theory

McClelland: this theory based on three needs of human which are achievement, power and
affiliation.
Advantages: this theory help to push an individual towards the desired goal.
Illustration 3: Herzberg theory of motivation
Illustration 4:
McClelland
theory of
motivation

Disadvantage: it fails to make a person to become personally motivated.
4. different types of leadership style
Autocratic leadership: under this style, leader hold all authority and responsibility and
they can make decision without consulting with their team members.
Democratic leadership: members of a team are involve in decision making but at last
only leader hold final responsibility (Buchanan and McCalman, 2018).
Strategic leadership: to create high performance, leader set the habit of its team member
and he the only head of an organization.
TASK 5
1. Impact of customer service
 Providing good customer service will improve the business's profit.
 Responds to every complaints on timely creates good image of a business.
 Help to build loyal image in a market (Kiruja and Mukuru,2018).
 Good customer service will help to prevent a business from negative reviews.
 Positive reviews about a business will make a company financially strong.
2. Benefits of customer profiling
 Help in better communication.
 Develop better opportunities for a company because customers provide feedback and
suggestion.
 Help in increases profit (Customer profile,2018).
 A good customers profile help in reduces competition.
 If a company know customer profile then it help to attract more customers and making
best strategy for a company.
CONCLUSION
From the above report, it is concluded that having a good leadership qualities can lead a
team in positive direction and the report more focus on different style of leadership and three
basic motivational theories. The report also tells that customers service is a key to organizational
success and present the importance of accounting in a business.

REFERNCES
Books and Journals
Buchanan, D. A. and McCalman, J., 2018. High performance work systems: The digital
experience. Routledge.
De Vito, L. and et.al., 2018. Employee motivation based on the hierarchy of needs, expectancy
and the two-factor theories applied with higher education employees. IJAMEE.
Huda, M. and et.al., 2018. Transmitting leadership based civic responsibility: insights from
service learning. International Journal of Ethics and Systems, 34(1), pp.20-31.
Kiruja, E. K. and Mukuru, E., 2018. Effect of motivation on employee performance in public
middle level Technical Training Institutions in Kenya. IJAME.
Lynn, M. and Brewster, Z. W., 2018. A within-restaurant analysis of changes in customer
satisfaction following the introduction of service inclusive pricing or automatic service
charges. International Journal of Hospitality Management. 70. pp.9-15.
Pratheepkanth, P., 2018. Management Accounting Revolution: Developed and Developing
Country. World Academy of Science, Engineering and Technology, International Journal
of Economics and Management Engineering. 5(3).
Waniganayake, M. and et.al., 2018. Leadership: Contexts and complexities in early childhood
education. Oxford University Press.
Yazdifar, H. and et.al., 2018. The diffusion of management accounting innovations in dependent
(subsidiary) organisations and MNCs. The International Journal of Accounting.
Online
Customer profile. 2018. [Online] Available through:<https://study.com/academy/lesson/what-is-
a-customer-profile-definition-examples.html>