Organizational Structure Analysis - Types, Functions and Interrelation

This report analyzes the types, functions and interrelation of organizational structure. It explains the size and scope of different types of organizations and the interrelation between different functions within the organization. The report also discusses the advantages and disadvantages of interrelation between various organization functions and its impact on organization structure.

Organizational structure analysis
Business and the Business Environment
Organizational Types, Functions and Structures
Name of the Author

Table of Contents
Introduction...........................................................................................................................................1
Task-1....................................................................................................................................................2
Types of organization........................................................................................................................2
Explain the size and scope of a range of different types of organisations..........................................3
Task-2....................................................................................................................................................5
Interrelation between different functions within the organization......................................................5
Conclusion.............................................................................................................................................7
References.............................................................................................................................................9

Introduction
There are several factors which have been affecting the organization structure, types
and functions. Organization is accompanied with the complex set of activities in which
several functions are performed to achieve the certain goals and objectives. It is analyzed
that each and every company has their different legal structure and operiatons to run the
business effectively. In this report, there are several types and purposes of organization have
been discussed. After that, size, scope and range of different types of organization have been
undertaken which will assist in implementing the effective strategic planning.

Task-1
Types of organization
There are several types of organizations which are incorporated by the promoters as
per their needs and demand. The formation of the type of organization depends upon the
nature of the business, need of the organization and implemented strategic plans which
promoters have set up for their business.
Sole trade Organization- It is sole trading organization which is entirely private
owned maintained by the single person and liable for all benefits and loss in business
organization. The main purpose of incorporating the sole trade organization is to keep the
business name separate but promoters will have unlimited liabilities towards the business
(Brunsson, and Olsen, 2018).
Partnership Organization- It is the organization which his accompanied with the two
and more persons and takes all the imperative decisions as per the partnership deed decided.
The main purpose of incorporating the partnership firm is to start up new business with the
partnership on the certain terms and conditions. It will be bind with the partnership deeds
created by them with each other’s (Bolman, and Deal, 2017).
Limited Organization- It is the limited organization in which all the liabilities could
be transferred easily to others. The limited liability partnership is ideally created with a view
to start up new business with limited liabilities. Promoters need to follow very less
requirements in their business which is the main basic purpose of creating new limited
liabilities organization. The limited liability partnership is incorporated with a view to have
limited liabilities in the world (Brunsson, and Olsen, 2018).
Company- It is analyzed that in order to start up new business with the separate legal
entity, promoters incorporate company. In this case, company is the legal entity and will be
treated as factitious person who will be responsible for all the possible losses and profit. The
main purpose of incorporating the company is related to create thin line to determine the
separate legal entity between the shareholders and company at large.

Explain the size and scope of a range of different types of organisations.
In order to explain the size and scope of the range of the different types of the
organizations, there are several corporations have been taken into consideration (Armstrong,
2018).
Particular LLP (Allen &
Overy
Australia
)
Company
( Woolworth
Company
Partnership
(ABC
partnership
firm)
Sole trade
organization
( One person
and
association)
Scope The scope of
LLP is to
comply with the
less applicable
rules and
regulations and
offer the best
quality of
products and
services in
market.
It is legal entity
and will be
treated as
factitious
person who will
be responsible
for all the
possible losses
and profit. It
will be managed
by at least 2
directors who
will take all the
key decisions.
The partnership
firm is created
when company
wants to start up
business with
the help of two
people.
However, this
type of business
is formed when
there is less
turnover of
business.
The sole trade
organization is
promoted by the
one person to
effectively run
the business. It
is assessed that
company needs
to implement
the proper
strategic
planning to
manage the
business
effectively. It is
owned by only
single one trade
owner.

Range The limited
liability
partnership is
incorporated
with a view to
bind the
corporation
work to the
certain limit.
It is analyzed
that
businessman
incorporate
company to
create shield
against all the
matters and
issues. It is set
up as separate
legal entity.
The partnership
firm is
incorporated to
start up new
business with
the partnership
on the certain
terms and
conditions.
The range of
sole trade
partnership is to
set up a proper
work program
which will
provide proper
set up program
and allow
promoters to
use the sole
name to run the
business.
Ideally, it is
followed to run
the business
effectively
(Aguilera,
Judge, and
Terjesen, 2018).
It is analyzed that setting up Proper Corporation depends upon the nature, business
elements, executive team members and legal compliance program. Ideally, the business
objective set the proper structured program which company needs to follow for
implementation of the strategies in the business. The structure, size and extent of organization
are related to goals of the organization. It is observed that organization could easily grab the
potential customers when it achieves its set objectives and goals. If the possible right
structure is followed then it will easily add value to the clients work structure and eventually
add value for the business growth. The investment amount and objectives set and structure of
the organization all should be linked to each other’s and these should be set up after
considering all these factors.

The objective of organization is set up after considering the organizational structure,
resources availability and legal structured program. However, with the increasing complexity
of the business and structure, company could easily add value to its business functioning. It is
analyzed that if the scope of the products and services is vast only then an organization
creates massive organization size and creates scope otherwise it will result to small sized
organization at large (Andersen, and Grude, 2018).
Task-2
Interrelation between different functions within the organization
Organization structure is dependent upon the business functions of organization. If
company is accompanied with the complex business functions then it will be managed by
handling the proper work structure. It is analyzed that organization functions of company is
accompanied with the several inbound and outbound activities. In order to assess the different
functions of the organization and its linkage with the organization structure, we have to take
one company for the same (Armstrong, 2018).
In this case, Boutique and Bones Company will be taken which is engaged in
providing the designing and construction of the houses in Sydney. It is assessed that
Boutique and Bones Company has been accompanied with the complex set of activities in
which various department and functional process are undertaken. However, in order to set up
proper organizational work program and implemented strategic work, company has managed
different organization functions. It starts with the inbound activities which includes buying
raw material, products and services from the outside areas and after that the same will be
undergone in the process system of organization. After that, HRM department will be set up
to hire, recruit and manage the employees in the business. Afterward, the outbound activities
will be undertaken such as marketing, sales plans and implemented strategic work process to
achieve the set objective and goals (Bolman, and Deal, 2017).
It is analyzed that the organization functions of the Boutique and Bones Company is
accompanied with the several work process (Brunsson, and Olsen, 2018). This process
functions of Boutique and Bones Company works in achieving the set objectives and goals
which will add value to the organization work functions. In addition to this, organization
structure is the bigger part which controls all the organization functions to achieve the set
objectives. For instance, the key managerial person, accountants and managers will be

indulged in undertaking the strategic decisions of the Boutique and Bones Company to meet
the set objectives and goals. In addition to this, line managers will be indulged in taking the
tactical decisions. After that HRM department and other department will be indulged in
hiring and recruiting employees in business. It is further observed that if company wants to
achieve its certain goals and objectives then it will have to establish the nexus between the
organizational structure and functions in determined approach (Cummings, and Worley,
2014).
It is analyzed that if company undertake proper strategic program and implemented strategies
then it will add value to company. The functions program of Boutique and Bones Company
focuses on the implemented strategic program which will add value to its clients. The HRM
department and other functions are counted undertaken for inbound business activities
program. It is assessed that outbound activities of the company make the clients aware of the
products and services offered in market. The organizational functional program is managed
by the key managerial person who takes all the key decisions for effective running of
business and achieving the set objectives and goals. Furthermore, organizational structure of
company is determined on the basis of the complexity of the work, organizational norms and
work functions program which company needs to undertake to implement the proper strategic
program. If the proper nexus between the organization functions and organization structure is
undertaken then it will add value to the business and organizational growth in effective
manner. It is further observed that company also need to analysis all the positive and negative
factors of the market by using the PESTLE analysis that the existing business structure
should be changed or not (Hatch, 2018).
Organizational structure should be managed by following the proper work program and
directions of the management. The legal department, HR department, Production department,
logistic and supply chain department and value chain work process department will be the
key main department of the company. These departments will play key role in the business
success of the organization structure. It is analyzed that whether the all these organization are
adding value to the business success or not (Lind, 2018). The consistency in the work process
department should be maintained to run the operational planning of the business. For
instance, if the operations and functions of the business are not highly complex then proper
structure of the organization should be designed in proper manner.

Advantage of interrelation between various organization functions
and its impact on organization structure
Advantage
 It will assist Boutique and Bones Company to increase the overall efficiency of the
business (Ocasio, Laamanen, and Vaara, 2018).
 It establishes the co-operation among the work process members who will take all the
imperative decisions for the effective business functioning.
 Another advantage is related to increasing the overall quality of the products and
services offered in market by using the proper work functions program.
 It establishes the proper flow of information on each and every department which will
increase the overall profit by reducing the costing of business (Subramony, Segers,
Chadwick,. and Shyamsunder,., 2018).

Disadvantages
The main disadvantage of running the business after setting up the linkage between the
organization structure and functions are related to increasing transparency of the business
internally. Each and every employee will have information about the other employee such as
their job specification, job responsibilities and job description of every employee. It will
increase the complexity and demotivation among the employees. In addition to this, it will
increase the completion among the employees at large (Truskina, and Vernoux, 2018).
Conclusion
After analysing all the details related to organization structure and organizational
functions, it is considered that if company implement the proper strategic planning and
procedure then it will add nexus between the organizational growth and development. Now in
the end, it will add value for the business functioning and organizational growth in effective
manner. The proper linkage between organization structure and organizational functions will
not only increase the overall work efficiency but also create value on the invested capital.

References
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