Types and Purpose of Organisations and Legal Structures

This article explains the different types and purposes of organisations, including public, private, and voluntary sectors, and their legal structures. It also discusses the size and scope of various organisations and the relationship between organisational functions and their link with objectives and structure.

Business and business environment
Explain different types and purpose of organisations public, private and voluntary sectors and legal
structures
Every company run their operations in a specific type of organisation like public, private and
voluntary to operate, manage and accomplish the main goal for which they commence their business. Through
legal structure, they perform as well as conduct their responsibilities, authorities, roles and task effortlessly.
Public sector organisation
The public sector organisation is formed and managed by government of a country. They provide their
products or services for the welfare and improvement of society. For example, British Council is a pubic
organisation in UK that was established in 1934 by British government to provide services related to education
to public.
Purpose- The main goal of British Council is to provide education and promote international cultural globally.
Legal Structure- The legal structures in public sector organisations are shown below:
National level- Business managed and owned by the president as well as members of legislature of
the country. They operate their business to provide education services or finance to government of state and
regional for smooth working.
State level- In this level, the members of state government work to provide product and services for
the betterment of community in state under the guideline of central government.
The British Council company run their business activities at the national level to provide their education
services nationally or globally.
Private sector organisation
The private sector organisation is established and managed by the person along with the group of
persons with the motive of maximum profit or market share. For example: JD Sports, it was founded in 1981
and provides products related to sports like footwear, cloths as well as sports equipment in UK market.
Purpose- The main purpose of JD Sports is to earn maximum profit or brand value by providing sports
products to the target audience.
Legal structure – Given below are the legal structure in reference to private sector organisation.
Partnership- It is structure of private company which is formed and by the multiple owner to earn profit.
The responsibility, authority and profit is distributed among members as per their share in the
organisation.
Public limited company- This type of company managed by the directors or top level management as
well as owned by the shareholders. The company offers their shares to general people and listed in the
share market of the country.
The JD Sports company run their business operation as public limited company to increase
customer base and market share.
Voluntary organisation
The voluntary business is autonomous and managed by individuals in the society to provide
product and services to people of their community. For example: Samaritans, it was formed in 1953 at UK
to provide emotional support or help to people.
Purpose- The main purpose of Samaritans is to provide their health services to the people who suffers
from mental issues.
Legal structure- The legal structure for voluntary organisations are as follows-
Unincorporated associations- Individuals from a society come together to run a organisation
for the support or help of public as well as provide their services for the welfare of community instead of
making profit.
Charitable trust- It is formed as legal entity as a non-profit organisation. The members act as trustee,
agent, social worker and fiduciary on the behalf of a company or person to achieve the specific goal like
social service.
The Samaritans work as charitable trust for the betterment of people in UK.

Explain the size and scope of a range of different types of organisation
Every organisation operates in different environment for various different purposes. Each organisation has
different vision, size, scope, products or services and business objectives. The range of size and scope of
different kinds of organisation is discussed as below:
Private Sector Organisation (JD Sports)
 Background- JD Sports is a British sports fashion brand founded in 1981, headquarter in Greater
Manchester, England.
 Product or Services- It deals in accessories, footwear, sports apparels and sports equipments. It also
sponsors various football teams.
 Size and Scope- JD Sports have over 37000 employees in around 800 stores worldwide providing
great services and quality products.
 Vision and Mission- Vision is to have long term sustainable earnings to enhance the position of
company. Mission is to provides advance technologies and satisfy customer needs fully.
 Business Objectives- The objective is to earn more revenues by attracting a large number of people
in the brand.
 Legal Structure- It operates as a public limited company and offers its share to public for the growth
of company.
 Stakeholders- Executive Chair, Chairperson, employees and general public.
Voluntary Organisation (Samaritans)
 Background- Samaritans is a charity formed in 1953 by Chad Varah of London.
 Products or Services- It provides telephonic services to the people who are suffering from mental
issues and have suicidal thoughts.
 Size and Scope- There are around 200 branches across the UK with over 21000 trained people
working as volunteers. Vision and Mission- Its vision is to reduce the number of suicide and mission is to aware people
about mental health.
 Business Objectives- To create awareness about various mental health issues and prevents people
from suicide.
 Legal Structure- It is a trust formed to provide services to general public
 Stakeholders- Board of trustees, Government, volunteers and investors.
Public Sector Organisation (British Council)
 Background- British Council is established in 1934 founded by British Government, its
headquarter is in London and operates in around 100 countries.
 Product or Services- To provide educational opportunities and build international culture. The
organisation has more than 80 centres for teaching which offers face-to-face teachings.
 Size and Scope- The number of employees in British Council are around 12000 of staff in centres
for teaching, offices, and libraries in UK and in over 100 countries. British Council provides the
scope of versatility, ambition, motivation and creativity in a supportive and opportunistic
environment.
 Vision and Mission- The vision of British Council is to assist young people to learn the skills,
self-confidence as well as relations to understand their potential so that they can participate in
strong communities. Likewise, the mission is to develop opportunities globally for people of UK
as well as for other nations and build trustworthiness between them worldwide.
 Business Objectives- The objective of British Council is to build and develop connections and
trust between UK and other countries by promoting arts, education, culture and language.
 Legal Structure- British Council is one of the largest public corporation as it operates on national
level as it operates globally to build relationship worldwide and sponsored by Foreign
Commonwealth and Development Office.
 Stakeholders- Chairman, Executive Chairman, Member of chamber of commerce and teachers.

Explain the relationship between various organisational function and their link with objective and
structure.
Every company has various functions of management in their organisation like finance, technology,
operations, marketing and human resource. All the functions are connected with each other for smooth flow of
working. In JD Sports, the company follows divisional structure to produce different line of sports product in
organisation efficiently.
Every product line has different functional unit as well as they are interlinked which are as follows:
Human resource and operation- In JD Sports, human resource department recruit and manage the
employees as well as operation department works to produce sports product from raw material to final goods.
Both the department are interlinked with each other as operation department give information to human
resource department about the need of workers for producing large amount of goods. Along with that, human
resource department share information to managers of operation department about the skills, role and
authorities of employees.
Finance and technology- In JD Sports, finance department makes budget and control the flow of
cash as well as technological department installs advance or productive machines for smooth
manufacturing. For the achievement of company's objectives, both department works together.
Technological department consult with finance department about the budget for purchasing various
machines in the organisation to increase productivity.
Marketing and customer services- In JD Sports, the marketing department promote their sports
product to attract large number of customers as well as customer service department retain customer by
answering their queries. Both department make better strategies to increase customer base and brand value.
Customer service managers discuss with marketers about the customer trends and target markets.
Benefits and limitation of relationship in organisational functions
The benefits of divisional structure for JD Sports are effective communication, easy flow of work,
financial control, better environment for employees and accountability in work which increase productivity
and profit of company. Whereas, there are some limitation also such as disagreement, long process,
overlapping and conflict between employees of different department due to lack of understanding about
each other work.