Understanding Business Organisation: Types, Structures, Functions and Culture

This report provides an understanding of the environment of business, with a focus on Premier Inn Hotel. It covers different categories of businesses, their structures, functions, and culture.

Understanding business
organisation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is referred to as the business organization or the enterprises which are engaged
in industrial, commercial and professional business activities. The motive of the business is for
organizing the economic manufacturing of products and services. Business may be for profit or
non-profits firms accomplishing the mission of charity. They range in the scope and scales from
the sole proprietorship to big, global institutions (Ahmad and Murray, 2019). This report is made
for understandings the environment of business. Premier Inn Hotel is taken in consideration and
the report will state the different categories of businesses with the structure of the organization.
Further the functions of the business and culture of the business will also be mentioned.
MAIN BODY
Business are known as the business enterprises involving in the commercial, professional and
occupational activities with the purpose of earning profit. One simple business kind is sole
proprietorship where the business is formed, organized and operated by the one owner. For ex-
Small French restaurant is the sole proprietorship and run by the one individual. Major merit of
this business kind is of offering the flexibility and founder is only liable for enjoying entire
margins of the profit and they even don’t have to advices from the other persons. Founder have
entire controls over the assets and all power is with him/her. It even needs low funds for the
business establishing and there is no need of expert suggestions. It leads in reduced cost and
founder enjoys all profits (Bhanushali, 2018). One main demerits of sole proprietorship are of
accountability for bearing all losses in recession. Many times decision taking becomes less
flexible and result in wrong decisions taking. Another drawback of the sole proprietorship is of
limiting the capacity of expansion because of insufficient funds. All decisions and
accountabilities are with owner which sometimes becomes complex for the person for managing
the activities. Other business form is of the partnership where more than 2 persons forms a group
for setting up the firm for carryings the activities of business for generation of profit. Main
benefit of the partnership is that it makes the better capital borrowing. It is easy for establishing
the firm in partnership as every partner bringing the funds reducing burden which may be seen in
the sole proprietorship. Hence the big capital may be raised by partnership and bridges the gap
among knowledge and expertise for carrying the operations of business. In the partnership the

single person can’t take the decision and have to jointly take all decisions. When the dissolution
of partnership happens and there is change in ownership it is very difficult for the partners for
recreating the formalities and deeds(Ismail and et,al., 2022). It even leads to the legal issues in
the case of informal contracts and partnership deed absences.
Public limited firms are the company form where it is formed by the stocks shares
intended for the free trades on the stock exchanges. For ex- Premier Inn Hotel is listed on the
stock exchange of London. In the public limited firm main benefit is of share capital raising in
case if firm gets listed on the reputed stock exchanges. It aids the firm in time of capital funding
by the external and internal sources. It may be seen as the symbol of prestige which gives
confidence to the public and they may invest the savings in the firm. In Premier Inn Hotel
contexts there are different executives who do collaboration focusing on the making the firm
successful. Main demerit of the public firm is of the particular level of scrutiny from the
regulators and investors. Another demerit is of focusing only on the short tenure objectives and
not on the long tenure goals of the firm.
Structure of the organization is defined as the system which outlays the various ways
with the practices which contributes in the objectives fulfilment. There are many kinds of
business organization which firm selects according to the level of operations. Tall structure may
be defined as the hierarchical structure where the firm breaks in several hierarchies. In context of
Premier Inn Hotel, they break the department in many hierarchies and every hierarchy have its
own executive which is accountable for carrying the functions. More control and clear lines of
accountability are seen in the structure. Merit of the tall structure is of the clarity and
administrable controls. It even facilitates in giving the many layers with the lines of
accountability and structure of clear promotions. Meanwhile the flat structure is called the
horizontal structure also where the firm has the less middle management among the individuals
and managers. Fewer levers of management have high response to the changing market and
approach of decentralized management are the features of the flat structure of the organization.
There are several opportunities which lies in the structure for excelling time for showing the
vision of the business. It is less rigid and includes the potential for adopting the change. The
structure of the organization empowers the employees and permits for great autonomy with the
accountability (Ward and Shortt, 2020).

Function of the business are the activities which are done by the business for the
motive of earning profit. In context of Premier Inn Hotel there are some main functions of the
business such a marketing and operations & human resource. First function of the business is of
marketing and related to the products and services promotion for targeting the consumers. It
plays the vital part in public awareness about the offerings. By marketing the goods firm may
attract the big base of consumers (Thobela, 2020). In context of Premier Inn Hotel, it selects the
tools of digital marketing for engaging and communicating with the consumers. Activities of
marketing impacts positively on the brand equity of firm and makes the good visible to the large
audience contributing in the increase in volumes of sales. Other function of business is of human
resource related to the selection, recruitment, payroll management, employee’s performance
evaluation and gives the sessions of training and development. It’s the HR executive’s
accountability for maintaining the healthy relationships with the employees leading to the great
satisfaction of employees and decrease the turnover of employees. It’s crucial for the firm in
creating the better environment of work where the employees feel as the part of the firms and
work with the full capacity. HR executive functioning impacts the productivity and performance
of the firm. It makes sure that workforce is encouraged enough for carrying the roles and achieve
the goals of the organization. Other function of the business is of operations and relates for the
input to output conversion. Operations motive is for giving better services to the consumer and
acts as the control mechanism. Operational activities of the firm are effective and contributes for
the making of the firm efficient (Ray, Mishra and Dash, 2022). Entire activities impact
positively on changing the strengths by which the competitive benefit may be taken.
Culture of the organization may be known as the total collection of the
expectations and practices collectively with the values and norms which facilitates in the
informing and inform the members of team. It includes the shared beliefs which are made by the
executives and leaders which communicates further for reinforcing the use of several ways
which shapes the employee’s thoughts and perception. It’s crucial for the firm in creating the
healthy environment of work culture where the employees feel motivated and comfortable for
attaining the professional and personal objectives. In context of Premier Inn Hotel, they have
opted the Charles Handy model for shaping the several ways of working and behave in the firm.
The power culture does operation in the central culture focusing on the decision takers. Working
culture of the firm is very effectives where the employees feel part of the firm and give the

opportunities to the employees who are deserving. With it the firm they also organize the
sessions of training and development by which the employees may polish the existent skills and
get new skills set (Kumaresan and Liberona, 2018).

CONCLUSION
The above essay concludes that there are many business form like sole proprietorship, public
firms and partnerships. In sole proprietorship entire accountability is with the owner and they
enjoy all the profits and bears all the losses. With it there were several functions like marketing
& operations with human resource which together contributes in the objectives fulfilment. Tall
and flat are the various kinds of structure of the organization which outlays the process, roles &
accountabilities of the workers. By having the effective structure of the organizations aids in
enhancement of operations efficiency and bring the employees organised for attaining the
objectives. Culture of the organization forms the positive environment of workplaces which
impacts the plans nature which drives the firms for long vision.

REFERENCES
Books and Journals
Ahmad, M.U. and Murray, J., 2019. Understanding the connect between digitalisation,
sustainability and performance of an organisation. International Journal of Business
Excellence, 17(1), pp.83-96.
Bhanushali, M., 2018. TLP Understanding Theory, Structure and Design of Organisation 2017-
2018.
Ismail, N., and et,al., 2022. A Qualitative Study of Data Management Development for Hybrid
Organisation Application. International Journal of Interactive Mobile
Technologies, 16(13).
Kumaresan, A. and Liberona, D., 2018, August. A Case Study on Challenges and Obstacles in
Transforming to a Data-Driven Business Model in a Financial Organisation.
In International Conference on Knowledge Management in Organizations (pp. 263-
276). Springer, Cham.
Ray, S.S., Mishra, S.J. and Dash, S., 2022. Analysis on employees' perception towards ERP
implementation and its impact in different organisation. International Journal of
Productivity and Quality Management, 36(4), pp.553-568.
Thobela, M., 2020. Aligning Business Processes to the Strategic Goals of the Organisation.
University of Johannesburg (South Africa).
Ward, J. and Shortt, H. eds., 2020. Using arts-based research methods: Creative approaches for
researching business, organisation and humanities. Springer Nature.