(PDF) Organizational Types, Functions and Structures

Organizational Types,
Functions and Structures

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of organization, public, private and voluntary sectors and
legal structures............................................................................................................................3
P2. The size and scope of a range of different types of organizations........................................8
TASK 2............................................................................................................................................9
P3. The relationship between different organizational functions and the ways to link it with
organizational objectives and structure.......................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is the composition of the total factors which affect the business
(Business and Business environment, 2019). Both of the external and internal factors work
together to affect the function of an organization. An organization should keep in mind these
factors and adopted to them, this will help it in gaining competitive advantage and sustainability.
This report is based on the organization TESCO which was founded in 1919 by Jack Cohen. The
organization is based in England having its headquarter at Welwyn Garden City, Hertfordshire.
This report consists different types size and scope of organization in which three types of
organization are considered such as public, private and voluntary. The interrelationship of
various functions within organization and the ways to link it to organizational structure is
demonstrated.
TASK 1
P1. Different types and purpose of organization, public, private and voluntary sectors and legal
structures.
There are three types of organizations present such as public, private and voluntary.
According to this, the organization taken here is TESCO as private, NHS as public and Oxfam as
voluntary. Following is the explanation of such organizations:
Private Organization
Private organizations are the companies which are run by individuals and group of
individuals to earn profit and not state controlled (Aithal, 2016). The private organization taken
here is TESCO. The details of the organization are explained below:
Background details of company: TESCO is a multinational organization which is based
in UK, England. The company was founded in 1919 and since than it has expanded its business
in various countries such as Ireland, Malaysia, Czech Republic, Poland etc. The company manly
deals in grocery and multi-store channels. This organization is considered as the 9th largest
company in the world in terms of retail sector and revenue. The CEO and chairman of the
company are Dave Lewis and John Allen respectively.
Products and services: TESCO deals in various sectors such as retailing of books,
clothing, electronics, furniture, toys, petrol, software etc. But the main operation of the
organization is to provide retail products to its customers under a single roof. The organizations

has expanded its business in the above sector and therefore able to grow in foreign countries
also.
Vision Statement: The vision statement of the company mainly consists of five elements
as: wanted and needed around the world, a growing business full of opportunities, modern
innovative and full of ideas, winners locally whilst applying our skills globally, inspiring earning
trust and loyalty from customers, our colleagues and communities. This vision statement of the
company has various lists included in it. There vision is very large as per their expectations.
Mission Statement: The core purpose and mission of TESCO is to “We make what
matters better, together.” This statement provides information about the contribution of the
company towards making the products better and together (Bah, 2015).
Legal Structure: There are various types of legal structures of a private organization to
follow such as: Sole proprietorship: This type of legal structure is followed by an organization which is
run by an individual. The risks and benefits all are depend upon the decision making of
such individual. There are various business types which are still running with this type of
legal structure. The decision making and various restriction are limited in this type of
business. The owner take personal decision which will help it in taking quick decisions.
This type of companies follow democratic style of leadership. Partnership: Partnership in a business is done by two or more individuals which are
working together to share profit and loss. An agreement is signed by the parties involved
in partnership so as to decide their shares. The person having more shares have more
influence in the organization. The decision making is done by the parties involved in
partnership. Sometimes there can be conflict also among the partners in case of decision
making which results in slow decision making.
 Joint Stock Companies: This type of organizations are formed when there is limited
financial resources and heavy burden of risk. The funds can be raised with the help of
selling the shares. There are two types of companies in joint stock such as private limited
and public limited company. In private limited company, there is no intervention of
government and the members should be two or more and not more than 50 (Chang,
2016). In case of public limited company, the members are open and it has minimum of 7
members but there is no exceeding in the maximum number of members.

Legal structure of TESCO: From the above discussed legal structures it can be
determined that TESCO is following public limited type of joint stock company legal structure.
The company has many members which are having shares such as CEO, BOD, etc. All of these
are engaged in managing the functions of the firm and also involved in decision making process.
Purpose of company: The purpose of company mainly attached with the mission
statement. TESCO has the main purpose of providing better quality of products to its vendors
and customers.
Objectives: The main objective of TESCO is to maximize its sales and doing so to
increase its profit also. This will help the organization to be sustainable and profitable.
Stakeholders: Stakeholders are the person, groups and organizations which are affected
with the functioning of company (Charter, 2017). The stakeholders of the company will be
customers, employees, government, community, etc.
Public Organization
Public organizations those which are operated by the government agencies in order to
provide services to its citizens. The organization taken in this field is NHS which is explained
below:
Background details of the company: The company is operated in health and social care
field and has the acronym for National Health Service. This organization was established in the
year 1948 with the aim of providing comprehensive, universal and free at point services. This
organization does not deal in dental and optical care. The company provides its services in
England, Scotland and Wales.
Products and services: The company is mainly dealing in providing medical services to
the patients such as medicine, test at reasonable for free of cost (Deasy and et. al., 2016). All of
the services provided to the patient are for their betterment and providing healthy lifestyle for
them.
Vision: The vision statement of the company is “To deliver better health, better care and
better values.”
Mission: The mission statement of the company is “to provide quality of care to every
person every day. ”
Legal Structure: Following are the legal structure of public sector organizations

 Central government: This is the form of legal structure which is operated by the central
government. In case of UK, the central government is responsible in operating its
functions centrally. State government: This is type of government which is operated by the state government
the states are provided facilities such as funds and other resources with the help of central
government.
 Local Government: This is the government type which is operated locally and also gets
influenced by central and state governments. This type of government is responsible in
operating the local matter of a territory.
From the above discussed legal structures, NHS is operated by central government. The
policies and frameworks are set by the central government. Apart from that, it is also responsible
in providing financial facilities to NHS.
Purpose: The main purpose of NHS is to provide better health services to its citizens.
This is also helpful in providing medicines, conveying tests etc. in reasonable rate (Hamilton,
2018).
Objective: The main objective of NHS is to meet everyone's need, free service at the
point of delivery and providing all clinical need.
Stakeholders: The stakeholder of the company are employees, volunteers, customers,
valuable citizens, suppliers, distributors, community and all the organizations and other aspects
which are related directly or indirectly to the company.
Voluntary Organizations
These are the organizations which are operated by a group or individual in order to give
welfare to the society. The voluntary organization taken here is Oxfam of which details are
shown below:
Background details of the company: Oxfam is the acronym for Oxford Committee for
Famine Relief. The company was founded in 1942 and led by Oxfam international. This is a
group of 20 charitable trust which are focusing on alleviation of global poverty. The organization
is based in Oxfam House, John Smith Drive, Oxford, England. Since 2013, the director of the
company is Winnie Byanyima (Hillary, 2017). In spite of alleviation of poverty the company
also deals in disaster relief, advocacy, policy research and pro-migration.

Products and service: The organization mainly deals in providing services in the field of
poverty eradication, disaster relief advocacy, policy research and pro-migration. All of the field
are used for the welfare of society.
Vision: The vision statement of the company is “A world without poverty where people
are valued and treated equally, enjoying their rights as full citizens and can influence decision
affecting their lives.”
Mission: The mission statement of the company is “To help create lasting solutions to the
injustice of poverty. They are part of a global movement for change, empowering people to
create a future that is secure, just and free from poverty. We work to end poverty locally and
globally, making this central to public and political life in Wales.”
Types of legal structures: Following are the types of legal structures for the voluntary
organizations. Unincorporated Association: This is a type of association which is incorporated by a
group of individual to support and provide welfare of the community. This type of firms
does not require any type of funds to set up in market (Ji-fan Ren and et. al., 2017). A
contract is made among the members of group to handle any type of conflicts among
them.
 Trust: It is corporation which is organised for performing fiduciary of agencies and trust.
This type of legal structure is owned by three agencies such as bank, independent
partnership and law firm. There are a group of person who are trustee and manages
beneficial activities.
In case of Oxfam, the organization favour the legal structure of unincorporated
association. There are a group of members who has set up an agreement among them.
Purpose: The main purpose of the firm is to eradicate poverty from the world and
provide a better lifestyle for the citizens where all of them will get equal status (Khan, 2015).
Objectives: The objectives of the firm is clear i.e. they are looking to see a world where
people are treated equally and have same rights among others.
Stakeholders: The stakeholders of the firm are users which uses the services of
company, suppliers, distributors, volunteers, community, government etc.

P2. The size and scope of a range of different types of organizations
There are different types of organizations which are explained in the previous section
such as public, private and voluntary. Following is the scope and size of such organization with
the link to the business objective and products and services offered by the organization.
Private Organization
The private organization taken in this report is TESCO. Following is the size and scope
of it.
Size:
There is an increase in the demands of the grocery stores where the whole products
delivery will be available under a single roof. TESCO is doing the same in which it is providing
the services to its customers on the basis of its product and service availability. The organization
has a very large size (Prajogo, 2016). There are currently more than 460,000 employees which
are working all over the world. Apart from that, firm has many subsidiaries such as banks, stores
Ltd, booker group etc. Therefore it can be said that according to the products and services
offered by TESCO it is a large size organization.
Scope
The scope of TESCO is also larger. The company is operating its business in grocery
stores which has huge scope in all over the world. Apart from that, the organization has good
brand value such as it is 9th largest grocery store in the world. The main objective of the firm is to
maximize the sales and increase in profit. As per the objective, the company is expanding its
business internationally and have huge scope because of its brand value also.
Public Organization
The public organization taken here is NHS of which size and scope are stated as below:
Size
The size of NHS is very large as its also working in Scotland and Wales. The company is
also dealing in various aspects such as providing various medical facilities to the society as free
medicines, free check up etc. The main objective of the company is to meet everyone's need and
free service at the point of delivery (Quinlan and et. al., 2019). Due to this objective, the
company is also working in other parts of England. Therefore, the size of it is larger.
Scope

The scope of NHS is also wide. The medical facilities are always required by the people
within UK. Therefore the scope of services provided to the society is wider in nature. The
company can also expand itself across the globe with the facilitation of services.
Voluntary Organization
The voluntary organization taken here is Oxfam of which size and scope are discussed
below:
Size
Oxfam is a large organization which is a group of 20 individual charitable trusts. The
organization has also its branches out of UK (Schaltegger, 2016). Therefore the number of
volunteers are also larger. Therefore, it can be suggested that the size of company is larger.
Scope
The company is dealing in various aspects such as alleviating poverty, disaster relief,
advocacy, policy research and pro-migration. All of these activities supports the organization to
increase its scope around the world.
TASK 2
P3. The relationship between different organizational functions and the ways to link it with
organizational objectives and structure.
There are different departments which are present in the organization to support its
functioning. The functioning of the operation is done with the help of these departments. In order
to get success, effective management of these departments is necessary. Apart from that,
interrelationship among all of the department is also necessary which will provide effective
communication among them. This effective communication strengthen the management of
TESCO. Hence helped in achieving the business objective of the firm. Following are the
relationship of different departments within TESCO:
Marketing and Human Resource
Marketing and human resource both are important for an organization. In case of
TESCO, marketing needs the effective employee which can advertise for the products and
services of the organization effectively (Virglerová, 2016). HR manager should select the
employee according to the requirement of the department. Thy will communicate with each other
according to the desired need within an employee. This will help the HR department to recruit

the best employees for the desired post. The objective of TESCO is to increase its sales and
profitability also. Both of the tasks are interrelated to the marketing department. The marketing
department is responsible in increasing the sales of TESCO. HR department will provide the
effective employee within the company (Wheelen and et. al., 2017). Therefore both of the
departments are responsible with proper communication to the success of organization.
Marketing and Finance department
Both of these department within TESCO requires a great collaboration. The finance
department is responsible in allocating the funds for each functions within the firm. The
marketing department is responsible for increasing the sales and profitability of the firm. The
marketing department requires funds to advertise the specifications of the products and company.
This requires a lot of funds. Apart from that, marketing department is also responsible for
providing proper information the finance department about the allocation of funds etc. Therefore
both of these departments are commonly attached with each other. They needs to communicate
effectively so that desired objective can be achieved. The structure of TESCO is also public
limited company in which there are many members who are responsible for the loss and profit.
The members needs to be attached with the firm's objective so as to gain the profitability. This
will allow them the different department to achieve the objective of the firm easily.
Marketing and research and development
Research and development department is responsible in identifying the new and
advanced technology or ways through which the objectives of the organization can be achieved.
This department always linked with all other department to provide them effective ways to
increase their performance. In case of marketing department and research & development
department, it is quite essential for both of them to work and collaborate accordingly. The
marketing department requires new and advanced ways through which they can advertise about
the products and services effectively (vom, 2016). They requires new technology such as online
platform, social media, door to door marketing etc. These details have been provided to the
department with the help of R&D. R&D also responsible in providing the best way through
which marketing department can increase its productivity and performance. Although the main
objective of the firm is quite relevant to the working of these departments therefore collaboration
among these department will provide effective ways through which they can achieve the
objective of TESCO.

CONCLUSION
In this report, it can be concluded that business environment is the important aspect for
achieving the success within the firm. There are three types of organization explained in this
report which are helpful in providing the information of their scope, size, objective, purpose,
vision and mission. Apart from that the legal structure is also explained in these organization
through which it has become possible to deeply understand the types of organizations. Apart
from that, the relationship among the department also help in identifying the ways through which
they can achieve the organizational objective.

REFERENCES
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Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
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