Comparative Analysis of Organisational Structures

The provided assignment is a detailed study on organisational structures, types, and functions. It highlights the importance of different management functions such as marketing, finance, human resource, and their inter-relationships within an organisation. The document also references several books and journals, as well as online resources, to support its findings. A comparative analysis of organisational structures is presented, with a focus on public, private, and voluntary organisations. The study concludes that all management functions are equally important for a company's survival.

ORGANIZATIONAL
TYPES, FUNCTIONS
AND STRUCTURES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Different types, purpose and legal structure of organisation.................................................1
P2. Explain the size and scope of a range of different types of organisation.............................2
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................5
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions...................................................5
P3. Relationship between different organisational functions and how they link to
organisational objectives and structure. .....................................................................................6
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure........................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is the sum total of external and internal factors that affect the
working of the company. In this dynamic environment, there exists several organisations with
different functions and characteristics. Majorly, they are segregated into three types namely
public sector, private and voluntary company. A public sector is a government owned company
which is established for the purpose of providing services to the citizens. Whereas, a private
sector company is formed by individuals or a group of people for earning profit. Lastly, a
voluntary association is a not for profit organisation set up for the motive of providing services to
the helpless people, victims and the society as a whole.
Tesco is a British multinational company that deals in retail merchandise and groceries
(Kukreja and Gupta, 2016). It is a private company founded by Jack Cohen in London in the year
1919.
NHS (National health service) is a UK based public sector company that provide health
care and medical related services to the citizens of the country. It was established in the year
1948 and provides employment to more than 1.7 million people.
On the other hand Oxfam is a UK based NGO group that focuses on eradication of
poverty, disaster relief and other social services. The current report will focus on different types
of organisations and inter-relationship between different organisational functions.
MAIN BODY
P1 Different types, purpose and legal structure of organisation
Difference between public sector, private sector and voluntary sector organisation
Public sector organisation: The public sector organisation are under the control of
government and work for the benefit of the public. The run and monitor by the government and
does take their own decisions. The government provide the revenue raised by the collection of
taxes, fees and duties to run the business effectively. For example : NHS is a public sector
organisation who work for the benefits of public and provide their services like the medicines,
home care, disease treatment etc (Snooks and et.al., 2016).
Purpose : The purpose of public sector organisation is to work for the benefits of public
and help them live a better life. NHS provide their free services or less expensive treatment to
their patients so they can get the better life by curing their diseases. Their objective is to
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increases their services so more patient can get the opportunity to get treatment from the best
doctors.
Private sector organisation : Private sector organisation are run by the private
individual and company. Their primary objectives is to run the business for the profit. They
generate the capital by issuing share to the stakeholders to run their business in market. For
example : Tesco is a multinational retail sector company who run their business across the world
by raising capital from the public or stakeholders (Hilton, 2017).
Purpose : The main objective and purpose of private sector organisation is to earn the
higher revenue or profit and satisfy the customer with their services to earn their interest and
loyalty. The purpose of Tesco is to earn the loyalty and trust of t heir customer by creating value
of their product and services in the mind of customer. They offer variety of product and services
like groceries, food items, clothes etc. to fulfil the need and demand of their customer.
Voluntary sector Organisation : The voluntary sector organisation are work for the
welfare of the public rather than to earn profit. They are free from the control of government.
For example : Oxfam is a non profit organisation which provide their services to resolve the
poverty problem and help the public by providing essential things.
Purpose : Voluntary sector organisation purpose is to help the public without any self
interest. They provided their services to protect the rights of the public and help them to live and
better livelihood. The purpose of Oxfam is to end poverty in the the world by protecting the
rights of the public and help them to get the benefits of government services. They work to
provide the safe and secure future to the public so they can enjoy their rights.
P2. Explain the size and scope of a range of different types of organisation.
Basis Private sector Public sector Voluntary
organisation
Mission Tesco company's
mission statement is to
provide good quality
products to their
The mission of NHS
describes that they
wish to provide best
health care services to
The mission statement
of Oxfam NGO
includes finding the
root cause of poverty
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customers that
improves their
standard of living.
their citizens by
optimum utilization of
resources.
and its eradication and
saving lives of people
stuck in disaster prone
areas.
Vision Tesco company's
vision is to become the
most valued company
in the world in terms
of revenue as well as
the number of
customers they serve.
The company's vision
is to provide good
quality services to
their patients within
minimum cost and
expenses.
Oxfam's vision
emphasises towards a
world without poverty
and discrimination
where the citizens
have the right to
influence the decisions
affecting their lives.
Market share Tesco is the 15th most
valuable retail brand in
the world and it covers
27% of the market
share in the grocery
sector in the United
Kingdom.
The NHS owns
majority stake in the
health care sector
because it is a public
sector organisation and
provides treatment to
UK citizens at
minimum cost.
Oxfam ranks 11 when
it comes to providing
philanthropy and
charitable services.
The association works
in more than 90
countries and covers
huge market share.
Size Tesco company is the
3rd biggest retail
company in the world
in terms of revenue
generation and has
around 6800 stores in
12 locations with total
employee count
exceedingly more than
400,000 worldwide.
The National health
services (NHS), a
public company
provides employment
to more than 1 million
people which makes
them biggest employer
in the UK. The NHS'S
size can be determined
by the fact that it deals
Oxfam consists of an
alliance of 20 national
charitable
organisations that
operate in more than
90 countries. Oxfam
employs 5300 people
and works with 22000
volunteers worldwide.
(Hardoon, 2017)
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with 1 million people
in every 36 hours.
Legal structure Tesco company is a
private sector
company and it is
legally governed under
The Company's Act,
2006 of the United
Kingdom.
NHS is legally formed
under the National
service Act 1948 and
the company's main
stakeholders include
patients, doctors and
government.
Oxfam is legally
formed as a not for
profit
organization(NPO)
under the UK law of
1943 and the company
is limited by
guarantee.
Scope Tesco company
operates not only in
the UK but also in
India, Malaysia,
Thailand, Czech
Republic, Ireland and
Poland. The group has
diversified its
operations into
banking, mobile sector
and family dining.
The NHS group has a
wide scope as they
provide almost all
medical treatments
like diagnosis, child
care, mental health
related problems, heart
diseases and for other
chronic diseases as
well. The public sector
group operates in
England, Scotland,
Wales and Northern
Ireland. (Walton,
Umfreville and
Jacobs, 2018)
Oxfam is an
international voluntary
union that is based in
90 countries including
UK, USA, India,
Germany, Canada,
France and many
others. It works on
various issues like
poverty, rebuilding
livelihoods, equality,
disaster management,
sustainable food and
raising the voice of
powerless people. The
charity has also been
rated as the best
charity in the world by
various organisations.
Objectives Being a private The major objective of Being a voluntary
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company, Tesco's
major objective is to
maximize their profits.
The company aims to
build a successful
online shopping
experience for their
customers which will
not only help them in
maximizing their
profits but also in
increasing their
customer base and
market share.
NHS is to improve
their technology and
their range of services
at a financially viable
cost. They also wish to
maximise the overall
satisfaction levels of
their patients and
citizens.
organisation, Oxfam
aims to vanish all the
social evils from their
roots and make the
world a better place to
live. They are working
towards eradication of
poverty, diseases,
inequality on the basis
of cast, creed, colour,
gender and race.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation
Tesco company operates not only in the UK but also in 12 other locations. It has shown
incessant growth and the company has more than 6800 stores located around the globe. The
group has diversified its operations into banking, mobile sector and family dining .
he NHS group has a wide scope as they provide almost all medical treatments like
diagnosis, child care, mental health related problems, heart diseases and for other chronic
diseases as well. The public sector group operates in England, Scotland, Wales and Northern
Ireland (Hajnal, 2018).
Oxfam is an international voluntary union that is based in 90 countries including UK,
USA, India, Germany, Canada, France and many others. It works on various issues like poverty,
rebuilding livelihoods, equality, disaster management, sustainable food and raising the voice of
powerless people.
D1 Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions.
In the view point of author, no organizational structure is perfect, every one comes with
its own list of pros and cons. Tesco follows hierarchical organisational structure which has its
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own complexity because the employees cannot directly communicate with the top level
management which is a major problem. Also, the speed of communication is very slow which
makes it even more difficult in the process of implementation.
But Wood, Wrigley and Coe, (2016) and states that hierarchical organisational structure
is better than others because it provides exact information to its employees which makes them
aware of their roles and responsibilities. They also have fixed authority which makes the
working much easier in a company.
P3. Relationship between different organisational functions and how they link to organisational
objectives and structure.
Caption: Tesco's organizational structure
source: orgcharting.com
TESCO company follows a hierarchical organisational structure. In this organisational
structure, the powers and responsibilities are assigned to individuals on the basis of their position
in the hierarchy. It is beneficial for the employees as they clearly know about their responsibility
and the level of authority. The communication flows from top to bottom where the top level
management of Tesco gives information and orders to the employees. From bottom to top, the
employees provide feedback that helps the company to improve their future performance.
With the increasing chances of promotion, it also boosts the motivation of employees and
they work with increased productivity (Noe, and et.al., 2017).
(Organisational structure of TESCO, 2016). If a company wishes to achieve their goals
and objectives effectively and efficiently then it is imperative for them to work their
organisational functions together. Coordination and collaboration are the key factors responsible
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for the success of any business. Their are various functions in the organisation depending on
their size, scale and objectives like finance, marketing, human resource, sales, design and
production, R&D etc.
All these departments must be inter linked with each other otherwise the purpose of the
company degrades (Jones, and Wang, 2019).
The types of organisational functions of Tesco company are as follows:
 Marketing: The marketing department is the lifeblood of every organization. It begins
from the stage of conceptualizing to actually developing the product and selling it to the
customers. Tesco company's marketing includes multiple activities like identifying
customer needs and wants, market research, production, packaging and labelling,
promotions and selling of finished goods and services.
 Human resource: The human resource is the most important part of an organisation as it
aims at recruitment and selection of right kind of people at right place at right time. The
HR department of Tesco provides adequate training and development to their employees
that sharpens their skills so that they can achieve individual goals more effectively.
 Finance: The finance department manages all the economic activities of the business. It
takes care of the planning, organizing, auditing and accounting of Tesco's activities. It
manages the availability of funds and loans for the growth of the business.
All the three organizational functions are inter-related to each other. The marketing
department must closely work with the finance department to make sure that there are enough
funds for market research, promotional activities and for distribution purpose. It is the duty of
finance department to provide the marketing department with an estimated budget for all the
activities. Furthermore, marketing department must also coordinate with the human resource
department to communicate the type of skills and talent that are required in the company.
Moreover, the HR department must give the adequate training to the employees as per the needs
of the company. (Folarin and Hassan, 2015).
Finance and human resource are highly dependent on each other for their success. It is the
duty of human resource to retain the right talent in the organization and to provide them fair
wages and salaries. Moreover, they also need to provide adequate training to the employees and
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for this they need finance department to provide them with an estimated budget. Conversely, the
finance department needs human resource to provide them with talented and skilled employees.
M2 Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.
Advantages of interrelationships between organisational functions
 Coordination: Inter-relationship between different organisational functions increases the
coordination which increases the efficiency of the operations. This furthermore helps the
company to achieve huge profits and also minimizes their overall cost.
 Human relations: Inter-relationship between different organisational functions has a
social impact on the working of an organisation. Tesco company has an excellent
working culture mainly because of good human relations. The employees of all the
departments get along with each other really which reduces their turnover rate. This is
beneficial for the company in the long run (Parks, Parr, and Wolfe, 2018).
Disadvantages of interrelationships between organisational functions
 Confidential information: Inter-relationship between different functions can also have
an adverse effect on the working of a company. Sometimes, due to close human relations
unauthorized people get access to confidential information which can hamper the
productivity of the company and can even be a potential reason for their failure.
 Miscommunication: Inter-relation between different departments can sometimes cause
confusion which may lead to overlapping of work and resources. It not only leads to
wastage of resources but also causes demotivation within the employees
(Dewick, and Foster, 2018).
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CONCLUSION
From the above study it can be concluded that there are mainly three types of
organisations public, private and voluntary. Each organisation has different objectives for which
they are established therefore their size and scope may vary accordingly. Moreover, they have a
different organisational structure to ensure that they have a smooth working environment.
There exists different organisational functions like marketing, finance, human resource
and all of them are inter-related to each other in one way or the another. All management
functions are equally important to each other and it would be impossible for a company to
survive without any one of them. Thus, it can be stated that all the organisations have a
significant role to play in the overall development of a country.
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REFERENCES
Books and Journals
Allsop, J., 2018. Health policy and the NHS: towards 2000. Routledge.
Dewick, P. and Foster, C., 2018. Focal organisations and eco–innovation in consumption and
production systems. Ecological economics.143. pp.161-169.
Folarin, T.O. and Hassan, Z., 2015. Effects of Technology on Customer Retention: A study on
Tesco Malaysia. International Journal of Accounting and Business Management.4(2).
pp.16-38.
Hajnal, P.I., 2018. Oxfam International. In Civil society in the information age (pp. 57-66).
Routledge.
Hardoon, D., 2017. An Economy for the 99%: It’s time to build a human economy that benefits
everyone, not just the privileged few. Oxfam.
Hilton, B.J., 2017, August. Transnational Knowledge: Its Creation and Distribution Exploiting
Entrepreneurship and Organisational Behaviour. In Proceedings of the 60th Annual
Meeting of the ISSS-2016 Boulder, CO, USA (Vol. 1, No. 1).
Jones, S. and Wang, T., 2019. Predicting private company failure: A multi-class
analysis. Journal of International Financial Markets, Institutions and Money.61.
pp.161-188.
Noe, R.A.and et.al., 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Parks, C., Parr, N. and Wolfe, J., 2018. Integrating Private Company Principles into a
Government Department.
Snooks, H.and et.al., 2016. Self-reported long term needs after stroke. Journal of Health Services
Research & Policy.21(3). pp.188-194.
Walton, P., Umfreville, C. and Jacobs, L., 2018. Company Voluntary Arrangements: Evaluating
Success and Failure.
Wood, S., Wrigley, N. and Coe, N.M., 2016. Capital discipline and financial market relations in
retail globalization: insights from the case of Tesco plc. Journal of Economic
Geography.17(1). pp.31-57.
ONLINE
Organisational structure of TESCO. 2016. [Online]. Available
Through.<http://www.orgcharting.com/tesco-company-organisational-structure-chart-
example/>.
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