Organizational Types: Public, Private and Voluntary Organisations and Its Legal Structure

This report discusses the different types of organizations and their legal structures such as public, private, and voluntary organizations. It also covers the size and scope of different types of organizations and the inter-relationship between different business functions. Additionally, it provides a critical analysis of the complexities of various types of businesses and the inter-relationship of different functional areas of business.

Organizational Types
INTRODUCTION
The sum total of all those factors which effect the operations of a business
organisation comes under business environment. It seems that each and every
business organisation have to interact with their business environment. It state
that there is a strong relationship between business unit and environment. All
the factors of business environment affect the business practices in direct or
indirect way (Becker, 2018). The chosen organisation for this report is Marks
and Spencer which is a British multinational retailer of food products, home
products and cloths. Its headquarter is located in London, England, United
Kingdom. This organisation is serving its customers of across the world
through more than 959 stores only in United Kingdom. This organisation is a
public limited company. This report includes the several types and purpose of
organisation, size and scope of range of different types of organisation and the
relationship among several organisational function along with their connection
with the objectives and structure of business organisation.
TASK 1
P1. Public, private and voluntary organisations and its legal structure
A business organisation has been developed by the group of individuals
who are working in the firm. All the individuals work for the purpose of
achieving the common goals of organisation and all the individuals provide
more efforts and contribute their energy for the purpose of reaching to the
desired place. In order to attain the shared goals, it is necessary for the business
organisation to coordinate with the several activities which are being performed
in the business firm. It also leads to bring the effectiveness and efficiency in the
final outcome (Booth, 2018). There are several types of business organisation
which are different from each other on the basis of their size and scope with
different legal structure and goals. Below mentioned are the different types of
organisations:
 Private Organisation: It refers to the individual, partnership, association or
any agency which is not a public body. The main objective of such
organisation is to earn huge amount of profits. All the business operations are
the responsibilities of owner of such business organisations. In order to
operating these kinds of companies, there is no any control of outsiders or
government. In simple words, it can be said that the private organisations are
being managed and owned by individual person or a group of people but it
does not involve any state or official organisation. It is considering as the
portion of economy which has been not controlled by the state or central
government. Increasing profitability and productivity is the major objective of
private sector business organisations. Some examples of private sector
organisation include Marks and Spencer, Costa Coffee, Dyson and many
more.
Legal Structure of Private Sector organisation
 Partnership: It is defined as a mutual contract among two or more than two
individuals under which they come in a contract for the purpose of
performing business operations collectively and share the profit and losses in
the pre-decided ratio.
 Sole Proprietorship: It is defined as the type of business organisation which
is being managed and owned by a single individual. The owner of the
organisation is responsible for performing all the business operations with
unlimited liability. All the responsibilities and authorities related to the
business organisation is in the hand of owner of such organisation.
 Companies: A company is defined as the organisation having separate legal
entity and have a common seal as well (Chandra and Kumar, 2018). The
liability of members of companies are limited.
Public, private and voluntary organisations and its legal structure

Organizational Types
Public, private and voluntary organisations and its legal structure
 Public organisation: It is defined as the organisations which are
managed and owned by government entity. Majorly, public organisation
works for providing the services to the general public of which is
beneficial for the society. Main purpose of operating public sector
organisations is to provide goods and services with the motive of
welfare of society rather than earning profit. Serving the people of
society is the major objective of organisations which are working under
public sector. The Bank of England, Housing Authorities are some
examples of public sector organisation. The major purpose of these
organisations is to serve the people living in the society rather than
earning the profits.
Legal Structure of Public Sector organisation
 Local Government: This legal structure of public sector involves all
those business organisations which are being managed by the local
government. Local authority is responsible for developing the rules and
regulations for their business firm.
 Central Government: Those business organisations which are operated
and owned by the central government comes under this legal structure.
Those laws which are being passed by the central government are being
applied on these business organisations.
 State Government: It refers to all those business organisation which
perform the operations by following the laws which are being passed by
the state government. Basically, these organisations provide their
services to the people of only a particular state.
 Voluntary Sector: It is the third sector in economy under which the
organisations work for the purpose of creat9ing social impact rather than
earning profit. There is no any involvement of national and local government.
Sports England is the best example of voluntary organisation because this firm
is performing its practices only for the purpose of satisfying the needs and
requirements of people of society. The major purpose of voluntary
organisation is being analysed that they focus on solving the issues and
problems of people of social group (Hernes, 2018). Such organisations also
provide products and services to the people for the purpose of dealing with the
problems which also leads to the welfare of people.
Legal Structure of voluntary Sector organisation
 Charity: It is defined as the structure of business organisation under which the
funds are being collected in order to perform the practices related to
organisation. The management of such businesses use this amount of charity
for performing their operations with the objectives of welfare of people.
 Trust: It refers to those type of organisation under which the funds are being
collected by trustees in order to use them for performing the functions and
operations in an effective and efficient manner.

Organizational Types
Size and scope of different types of organizations
P2 Size and scope of different types of organizations
Below mentioned are the several kinds of organisation with its scope and size:
 Micro Enterprises: It is defined as the business which involve less
amount of capital and a few number of employees. Such type of
business organisations has annual turnover up to 2 million and the
working employees in this organisation are 0 to 9. it has vital role in
providing the employment to the local people of society which leads to
the development of local regional as well. Basically, these businesses
work with the less usage of technology. The size of micro enterprise is
small because of less capital and working people in the organisation but
the scope of same organisation is high because it covers a wide range of
practices with the low involvement of advance technology.
 Medium Enterprises: It is defined as the business which is large in size
and scale as compared to the micro enterprises as it involves more than
10 employees but less than 49. the annual turnover of such business
enterprises are measured as between the 2 million and 10 million. In
retail and manufacturing industry, these business enterprises re mainly
working. Continuously focusing on bringing innovation by introducing
the new and advance technology (Hyndman and McKillop, 2018).
Hence, the scope of medium enterprise is also measured as high. In
order to acquire the scope of organisation, the owner majorly focus on
implementing any modifications in the products and services.
 Large Enterprise: It is defined as the business firm in which the
operations are being performed on huge level. As the organisation is
performing operations on large scale, it involves huge amount of human
capital i.e. between 50 to 250. Annual turnover of large enterprise is
measured as approximately 250 million. Marks and Spencer company is
found as the example of large enterprise as it is performing its business
operations in all over the world and it also involve huge amount of
human capital along with profitability. The respective business
organisation is dealing with the food products, home products and
cloths for men, women and children.
M1. Examine how scope, size and structure of various organisation can link with
business targets and provides items and services related to organisation.
While developing the objectives of a business organisation, it is necessary to
measure its size. It is essential for business organisation to develop genuine objectives
only when they have proper hierarchical design. If any business organisation does not
have sufficient workers and knowledge, the organisation will not able to reach at the
desired place by attaining the organisational goals and objectives. On the basis of the
size of organisations, the goals have been developed. The business organisation has to
manage their work force and resources in such an effective manner, so that they can
attain the organisational goals and objectives. If the scope of a business organisation
is high, it means that the business has higher opportunities to grab and expand their
operations which also leads to the increase in profitability of organisation. On the
other hand, of the scope of a business organisation is limited, it can also bring
limitation in the expansion of business and earning of profit. By developing the
effective structure in the business organisation, the employees can coordinate with
each other which leads to bringing the effectiveness and efficiency in the business
operations.
TASK 2
P3. Discuss the inter-relationship between different business functions and how they
related with business objectives and structure.
A business firm can attain the success in more effective and efficient manner
after developing a strong interrelationship among several functions of business
organisation. It has been found as essential for the business firm to maintain their
interrelationship effectively as it help the management in completing all the work and
task in an appropriate manner.

Organizational Types
Inter-relationship between different business functions
Marks and Spencer is the organisation which have to perform several functions
and by coordinating and developing an effective interconnection among all of
the organisational functions, the management can easily attain their objectives
(Vishvakarma, Sharma and Kumar, 2021). Below mentioned is the brief
description of business functions along with their interrelationship in the
organisation of Marks and Spencer:
 Research and Development with production: Research and
development function of business organisation always focus on
bringing something innovative in the products offered by Marks and
Spencer. On the other hand, the production department take care of the
production of products and ensure the quality and quantity of products
as per the decided standard. Both of these functions are interconnected
with each other as the production department perform it functions of
production as per the suggestion and recommendation of Research and
development department. In the context of Marks and Spencer, the
production of products has been done on the basis of suggestions given
by Research and development department (Kandogan and Hiller, 2018).
If production department face any kind of issue or problem during
performance of its function, they convey the issue to the R&D
department in order to ratify the issues in an effective and efficient
manner.
 Marketing and Finance: While performing marketing function, the
marketing manager of Marks and Spencer is required to prepare a
proper budget in order to divide the finance as per the marketing
practices to get higher rate of return. Finance department helps the
marketing department in preparing a well-defined budget in order to
utilize the available resources in an effective and efficient manner. The
finance department of Marks and Spencer then convey the proper
budget to the marketing department, so that the executives of marketing
function can perform their marketing campaigns as per the pre-
M2. Analyse the advantages and disadvantages of the inter-relationship between
various functions of business.
The interrelationship among several functions of Marks and Spencer has its own
advantages and disadvantages as well. Below mentioned are some merits and
demerits of this interrelationship in the context of Marks and Spencer:
Advantages Disadvantage
 It leads to the establishment of
cooperation among all the functions of
organisation.
 It introduces the effectiveness and
efficiency in the overall functioning of
organisation (Newman and Posner,
2018).
 It also enhance the profitability as it
leads to the proper flow of
communication and information
between the employees.
 All the employees of organisa
well known about the working
employees; they can misu
information which can result
losses to the organisation.
 It leads to the creation of
competition among all the f
and department in the
organisation.

REFERENCES
Books and Journal
Becker, A., 2018. An experimental study of voluntary nonprofit
accountability and effects on public trust, reputation, perceived quality, and
donation behavior. Nonprofit and Voluntary Sector Quarterly, 47(3),
pp.562-582.
Booth, P., 2018. Management control in a voluntary organization:
accounting and accountants in organizational context. Routledge.
Chandra, S. and Kumar, K.N., 2018. EXPLORING FACTORS
INFLUENCING ORGANIZATIONAL ADOPTION OF AUGMENTED
REALITY IN E-COMMERCE: EMPIRICAL ANALYSIS USING
TECHNOLOGY-ORGANIZATION-ENVIRONMENT MODEL. Journal
of electronic commerce research, 19(3).
Hernes, H.M., 2018. Women and the welfare state: the transition from
private to public dependence. In Women and the State (pp. 72-92).
Routledge.
Hyndman, N. and McKillop, D., 2018. Public services and charities:
Accounting, accountability and governance at a time of change. The British
Accounting Review, 50(2), pp.143-148.
Kandogan, Y. and Hiller, J., 2018. Alliances in international governmental
organizations, regional trade agreement formation, and multinational
enterprise regionalization strategy. Journal of International Business
Studies, 49(6), pp.729-742.
Nesbit, R., Christensen, R.K. and Brudney, J.L., 2018. The limits and
possibilities of volunteering: A framework for explaining the scope of
volunteer involvement in public and nonprofit organizations. Public
Administration Review, 78(4), pp.502-513.
Newman, A.L. and Posner, E., 2018. Voluntary disruptions: International
soft law, finance, and power. Oxford University Press.
Vishvakarma, N.K., Sharma, R.R.K. and Kumar, A., 2021. An Empirical
Inter-relationship between different business functions
Organizational Types
D1. Provide a critical analysis of the complexities of various types of business and inter-
relationship of the different functional areas of business.
It has been analysed that the business has various size, nature and form. There are
different types of sectors i.e. public, private and volunteer which has been classified on
the basis of ownership of organisations. While starting a new start up, a person should
know about the size, scope and functioning of organisation as it leads to the performance
of business operations in an effective and efficient manner (Nesbit, Christensen and
Brudney, 2018). A business organisation also involves several functional areas with
different departments such as marketing function, Research and development function,
finance function and many more. The interrelationship among all of them leads to the
introduction of effectiveness and efficiency in organisation.
CONCLUSION
From the above report, it has been concluded that the there are various types of business
organisation which has been classified on the basis of their size, scope, nature and many
more. All the sectors have its own legal structure which is based on the ownership of
organisation. Size and scope of business organisation helps the management in
developing the targets. By developing the effective working structure at organisation, the
management can easily attain the objectives. The interrelationship among the functions of
organisation result in bringing the effectiveness and efficiency at work place.