Understanding Business Organisation

This essay discusses different types of business organizations such as partnership, sole trader, limited company along with their advantages and disadvantages. It also covers the comparison and contrast among organizational structure, functions of production, human resource, and operation, and the impact of positive organizational culture on organizational success.

Understanding Business Organisation
1

INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
2

Understanding business organisations and their environments
INTRODUCTION
Organisational structure is termed as a way in which functions and activities such as task
allocation, coordination and supervision are duly directed towards fulfilment of organisational
objectives and goals (Aliyafi'iy, 2021). Organisation structure act as a foundation that assist
company to effectively say align with objective. Present essay is conducted on the discussion of
different type of businesses such as partnership, sole trader, limited company along with their
advantages and disadvantages. In addition to this in this essay decision has been duly conducted
on comparison and contrast among organisational structure. Furthermore, functions of
production, human resource and operation in addition to their impact upon functional
management activities upon individual and company is also included in this essay. At last essay
is inclusive of organisational structure and the way positive organisational culture impact upon
organisational success.
MAIN BODY
In order to conduct business operations individuals are required to have better understanding
of different type of business structure, as it will benefit them to perform in effective manner
according to their needs. Sole trader, partnership and limited company are different forms of
business structure. In context with sole trader this structure is easy to set-up and in this form,
owner have responsibility of all the profits as well as the losses. It has been identified that in this
organisational structure there is no or less tax liability which benefit sole trader to perform
business operations effectively (Jati, Giyarsih and Muta'ali, 2021). However, it has been
identified that in this business owner is responsible for all the losses that company face. In the
structure owner can sometime find difficulties to raise further capital. It has been evaluated that
social media influencer, copywriters, designers’ marketers are some certain forms of sole
tradership example. If it is talked about partnership as a business organisational structure in this
individual or particular organisation get into a partnership agreement to conduct their business
3

operation. Example of this business structure include Louis Vuitton and BMW, Red Bull and
GoPro Spotify and Uber etc. In terms with private limited company this form of business
structure is inclusive of lawyer, accountant etc. It has been identified that private limited
company are mainly termed as shareholders. In a partnership business owners have less or fewer
legal obligation and in this form, partners can share losses as well as other burdens (Katunga,
Zegeye and Ortmann, 2021). However, it has been identified that major disadvantage of this
form of business type is that risk of disagreement among partners, conflicts and ineffective
decision-making can affect overall business operations. It has been identified that private limited
company have advantage in the form of professional status and efficiency of tax. It has been
underlined that this business type can face high level of tax regulation, rigidity and have less
privacy as compared to sole trader. These are various form of organisational structure that the
outline the way in which activities are conducted.
Main difference among flat and tall structure is that in context with tall structure there are
various forms of level of hierarchy in an organisation structure, and in flat structure within an
organisation structure it mainly consists of limited number of levels of hierarchy (). Furthermore,
it has been underlined that tall organisational structure have different type of hierarchy level in
which span of control is basically narrow and in this there are various forms of promotion
opportunity. Furthermore, it has been evaluated that in terms with tall structure in an organisation
there is basically long communication line that make company responsive to change. Along with
this it has been identified that in context with flat structure there are limited or few level of
hierarchy that make communication short. It makes company effectively responsive towards
change (Kovari, 2021). Furthermore as per the competition between tall and flat structure of
company it has been evaluated that in terms with flat structure of organisation structure mainly
have wide span of control that can be seen with its fewer level of hierarchy, in which few
individuals reported directly to them. This assists them towards reducing number of individuals
that are required to be managed. However it has been identified that there is longest span for
information to travel from different type of layers. In addition to this it has been underlined that
tall structure mainly lies in managerial clarity and control and also allow close form of
supervision of workers, as this form of structure offer clear line of responsibility along with
control with promotion structure (Plotnikov, 2021). While in terms comparison to flat structure it
mainly a valid each employee responsibility in company and eliminate excess level of
4

management layout. This effectively assist in making improvement in coordination as well as
communication. In flat structure with having fever level between employees’ company can
effectively enhanced decision-making process, this can be seen from the example of McDonald's
in which manager in each place of business control other assistance and employees. In context
with tall structure, it includes example in the form of departmental store, as in this they arrange
department by particular products.
In an organisational structure there are various forms of departments, playing their roles and
responsibility with common aim which is to fulfil company's objective and goals in a well-
defined and effective manner. In terms with human resource department, they are engaged in the
responsibility in planning, controlling, directing and hiring potential and talented candidates as to
to fill vacant position in work force (Lagan, 2021). Human resource management is responsible
to focus upon three important areas which is plan, design work and provide compensation and
other forms of benefits to employees in order to retain them within organisation for longer period
of time, as to enhance the organisation productivity and competitiveness in industry. If is talked
about production department they are subjected to identify inputs during the process of
production and produce high quality products in cost effective manner, as to increase company
revenue generation capability (Tarigan and Siagian, 2021). Operation department within
company is responsible towards performing operations related to plan and implement
manufacturing plans, manage projects, information system and assist in designing and effective
development of services and products. It has been identified that all these department plays
important role within an organisation as by playing distinct form of roles and responsibility these
departments continuously emphasize upon enhancing overall productivity and profitability of
organisation. In addition to that has been evaluated that all the three different departments have
positive impact upon organisational functional management activities and upon individual
(McCartney, 2021). As in this human resource department is having responsibility to provide
effective training to employees in order to fill skill gap. It helps in enhancing organisation and
employee’s performance on simultaneous basis. While production department as well as
operation department is responsible to manage organisation product, projects and other essential
task quality that assist company to deliver high quality services and products to consumer. These
departments are responsible to enhance company's sales and productivity on direct basis. Thus, it
has been evaluated that in Tesco human resource department is playing essential role in
5

influencing candidates and retain them by providing them attractive benefits and training. While
production and operation department are responsible to develop and design high quality products
as well as services that help Tesco to enhance loyalty of consumers.
Organisational culture is basically made of assumptions, shared value, belief and the way in
which employees within company are required to behave and make interaction with others. It has
been identified that organisational culture acting as an essential element for an organisation
weather it is small or large, sole proprietorship, partnership or any form of business type
(Muriithi, 2021). With the help of positive organisational culture company can make
improvement in decision making process which automatically helps in enhancing overall
productivity good. Organisational culture aid organisation to overcome challenges to have a clear
culture which promote employee engagement and organized work structure (Pavithra, 2021).
With the help of positive organisational culture company cannot only enhance employee’s
productivity and performance but can also encourage and motivate them in effective manner
towards company goals. In context with Tesco, it has been evaluated that with the help of
implementing positive organisational culture Tesco can strengthen relationship with employees
and can promote healthy and organised workplace culture (Tewari, 2021). A good organisational
culture is basically driven by clear expectation can motivate encourage and empower workers in
an effective manner. It also helps in maximizing overall productivity.
CONCLUSION
As per this report it has been concluded that, partnership, sole trader and limited company
are different type of business organisation. All these have different set of roles and responsibility
and are subjected to different advantages and disadvantages. It is essential for an individual to
have proper understanding of different type of business as to perform operations accordingly.
Furthermore, it has been identified from this report that production, human resource
management, and operations unit within an organisational workplace structure perform their
defend forms of functioning with a similar objective. With is to fulfil organisational goals and
acquire high profitability while serving consumers. In addition to this report states that positive
organisational culture is essential for an organisation in terms of operating business functions
adequately. With the help of positive organisational culture company can develop strong
6

relationship with employees and can encourage them towards accomplishment of company
objectives in a well-defined and effective manner.
REFERENCES
Books and Journals
Aliyafi'iy, M.S., 2021. The Effect Of Partner Capabilities, Economic Benefits And Trust To
Continue Channel Partnership by MSMEs. Journal of Business and Management
Review, 2(7), pp.483-502.
Jati, J.H., Giyarsih, S.R. and Muta'ali, L., 2021. The Influence of Characteristics of Worker and
Business on the Income of Informal Sector Workers in Yogyakarta. Populasi, 29(1),
pp.77-92.
Katunga, A., Zegeye, E.W. and Ortmann, G., 2021. Structure and entry barriers to access
groundnut markets for intermediary traders in central and northern
Malawi. Agrekon, 60(3), pp.264-279.
Kovari, E.M., 2021. Don’t Worry, be Emotionally Intelligent: Hotel Functional Managers’ Trait
Emotional Intelligence and its Relation to Task and Contextual Performance within
Organisational Culture in Hungary. University of Derby (United Kingdom).
Lagan, A., 2021. How do we create risks to our personal and organisational
reputations?. Governance Directions, 73(4), pp.169-172.
Liu, G., Tsui, E. and Kianto, A., 2021. Knowledge-friendly organisational culture and
performance: A meta-analysis. Journal of Business Research, 134, pp.738-753.
Liu, G., Tsui, E. and Kianto, A., 2021. Revealing deeper relationships between knowledge
management leadership and organisational performance: a meta-analytic
study. Knowledge Management Research & Practice, pp.1-15.
McCartney, C., 2021. Business Education as a Partnership for Sustainable
Development. Partnerships for the Goals, pp.101-110.
Mierzwa, D. and Mierzwa, D., 2021. Organisational culture of higher education institutions in
the process of implementing changes–case study. Journal of Decision Systems, pp.1-14.
Muriithi, S.M., 2021. Organisational Culture: The Root of Sustainable Competitive Advantage.
Musweu, F.K., 2021. The Importance of including Business Entities in the Introduction of any
Basic Accounting Programme. International Journal of Business Management Insight
& Transformations [ISSN: 2581-4176 (online)], 5(1).
Pavithra, A., 2021. Towards developing a comprehensive conceptual understanding of positive
hospital culture and approaches to healthcare organisational culture change in
Australia. Journal of Health Organization and Management.
Plotnikov, V.A., 2021. State-Business Partnership in Modern Conditions: Prospects for
Transformation. Administrative Consulting.
7

Tarigan, Z. and Siagian, H., 2021. The effects of strategic planning, purchasing strategy and
strategic partnership on operational performance. Uncertain Supply Chain
Management, 9(2), pp.363-372.
Tewari, R., 2021. Shaping Organisational Culture For Success. Invincible Publishers.
Yang, F2021. Impacts of external involvement on new product development performance:
moderating role of organisational culture. Technology Analysis & Strategic
Management, 33(1), pp.70-83.
8