Organizational Types, Functions and Structures.

ORGANISATIONAL TYPES,
FUNCTIONS AND
STRUCTURES

Contents
Introduction............................................................................................................... 3
Answer-1.................................................................................................................. 3
Answer-2.................................................................................................................. 7
Answer-3.................................................................................................................. 8
Conclusion.............................................................................................................. 11
References.............................................................................................................. 12

Introduction
The report comes up with classification of organisations, which is based on its structure and
its level of operation. The report has classified the types of companies on the basis of
purpose, legal entity, and right structure. The classified types of organisations are private
companies, public companies, and NGOs (Business guides, 2019). According to the
Ordinance of Hong Kong, the private company has been limited through shares. Moreover,
form of business entities may differ and it may consists of sole proprietorships, partnership,
and company, which has its share capital to conduct trade and business. Shares limit public
companies with its ownership, which is a locally incorporated organisation with number of
shareholders that can be nearly more than 50 (Lin, & Chang, 2018). This type of the company
in which shares and debentures have been offered to public. Medium private organisations,
which achieves appropriate growth in industry to take over the public company only after
expanding the shareholder’s base (Business guides, 2019).
The selected company for analysing structure is HONG KONG AI JIA the company. Further,
there is a proper introduction to different types of companies as private, public and NGOs
with their features. At last, a well-designed organisational chart lay the line of authority and
its control between level of management and different departments. Organisation structure
reflect a proper engagement of people towards their functions such as production, human
resources, accounting, and marketing. There is an interrelationship between departments and
organisational functions (Bliss, Goodwin, Gul, & Wong, 2018).
Answer-1
Individuals and companies operate the private sector rather than government. Private Sector
Company aims to generate profits. A PLC (private limited company) is separate legal entity,
which protects the personal assets of the shareholders from the liability. Shares limit private

holding of the shareholders in the company (Bliss, Goodwin, Gul, & Wong, 2018). On the
other hand, public companies are being listed on the Hong Kong stock exchange limited,
which are subject to follow SEHK rules governing the lists of securities, code of takeovers,
mergers, and share buybacks. The ownership of public companies is highly concentrated and
they are generally based on number of shareholders, which can be more than 50. Non-profit
organisation include Hong Kong Red Cross, Mother`s choice, The community chest of
homes, Society for community organisations, and Asia Art archive. A non-profit organisation
generates its funds through donations, and charities, which relieves poverty, advance religion,
advance education, and other charitable acts (Lin, & Chang, 2018).
Most importantly, it is seen that under the range of public organisations, any freedom is
allowed once it is listed. A listed company not only obtains needed finance with the issue of
public but at last it enjoys better facilities from banks (Ng, Morris, & China, 2019).
Private limited company Public limited company Non-profit organisation
The incorporation of public
company is limited by
guarantee and by shares.
Public limited company has
been limited by number of
shares (Lin, & Chang,
2018).
Most of the non-profit
companies opt for it where
entities follow the steps to
register the company limited
by the guarantee.
A private organisation is set
to conduct small business
operations.
A private company does not
need to encounter the
accounts with company’s
Most of the public limited
organisations are derived
from medium to large
private organizations, which
wish to expand the
investor`s base and increase
There is not involvement of
shares. Non-profit
organisation has the board of
directors, individuals,
corporations, social
secretary, and members (Ng,