MGBBT0UBN Essay: A Deep Dive into Business Organisations

This essay provides a comprehensive overview of business organizations, encompassing various forms such as sole proprietorships, partnerships, and limited liability partnerships, each with its unique advantages and disadvantages. It delves into different organizational structures, including flat and tall hierarchies, comparing their management levels and departmental functions. The essay also examines essential business functions like human resources, marketing, and finance, highlighting their impact on organizational goals, using Aldi as a practical example. Furthermore, it emphasizes the significance of organizational culture in fostering a positive environment, influencing employee behavior, and driving overall business success. In conclusion, the report underscores the importance of understanding business forms, implementing effective organizational structures, coordinating business functions, and cultivating a positive organizational culture for sustained success and employee well-being.

UNDERSTANDING
BUSINESS
ORGANISATION
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
The business organisation refers to a company which is established with an aim of
generating revenues and fulfilling the society's needs through selling of their products or
services. There are different types of companies which are operating their functions in the market
and are earning good profits. They on the other hand provides an opportunity of employment to
the people who are in search of job for their livelihood (COLBERT DIAS, J.E.A.N. and
FERREIRA, 2020). Any company whether it is a private, partnership or limited company
functions their task with the help of different departments like human resource, operations,
production and many more like this. The company which is considered for the present essay is
Aldi which is having its headquarter in UK. The business is a global operating firm that deals in
grocery, clothing and various other accessories which are generally purchased by the retail
buyers. The present essay talks about the various benefits & drawbacks of business forms, a
comparison of various organisational structure along with the functions that creates an impact on
business. Also, the organisational culture and practices of an industry is being mentioned.
MAIN BODY
Different types of companies:
Sole Trader refers to a practice of business which is being conducted by a single owner
who carries all the responsibilities of business affairs by their own. Establishing of a sole trading
company does not requires much amount. The main advantage of sole trading company is that
the business does not demands for much legal formalities or are very easy to establish. Also, the
profits of whole business is enjoyed by the owner and can make any business decision according
to their own without having discussion from any other person. The major disadvantage of having
a sole trading business is that the owner is required to meet all the liabilities and experience any
losses. Along with this, the organisational workload lies on the shoulder of owner only. Within
this type of business it is difficult to raise fund from external sources as the level of operation is
small. Examples like freelancers, electrician, carpenters, etc. comes under this category (Rye,
2020).
Partnerships refers to those firms which are set up minimum two persons who all
contributes to the organisation's profit and loss equally. The main advantage of partnership
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business is that all the partners brings some capital and shares the burden of loss. Also, this
allows to share the workload among the partners instead of lying on one person. The
disadvantage of partnership is that there is a chances of clashes among partners and the parters
might feel the loss of decision-making power from their hands. Along with this, there is a high
chances of loosing the business stability which can be due to any reason because all the partners
might not agree upon common thing. Firms like Yoomoo are established as a form of partnership
business.
Limited liability Partnership refers to the private company who comprises of the features
from company as well as of partnership. The main advantage of this is that there is a high
flexibility within the distribution of income as well as runs with a simple organisational
structure. Other than this, the employees or the various organisational affairs are easily
controlled by the managers within the business itself. Such type of companies comprises of
various drawbacks like the firm faces huge difficulty in raising of the finances, brings lot of
confusion in adopting various policies of partnership & companies act. Also, the firm does not
have a perpetual succession due to which the future stability cannot be imagined (Greer and et.
al., 2021).
Different Organisational Structure:
Unlike different types of companies there is a presence of various organisational
structures with the presence of which the companies performs and structures their task as well as
the hierarchy of positions.
Flat organisational structure comprises of a structure within which all the employees
can directly contact with their management team or with any one in the business without
following any chain. This type of structure includes decentralised leadership where no one is the
leader of no one. For instance the company Aldi applies the flat organisational structure within
its operations (Bhebhe, 2021).
Tall organisational structure refers to the structure where the hierarchy is being created
on the basis of management and employee's position. Under this an employee needs to follow a
proper chain and is required to report the next superior of them instead of directly contacting to
the top level. The companies managers are provided with the responsibility of handling and
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managing the work as well as to the employee's. Organisation like BBC adopts tall
organisational structure within their operations (Jaupaj and Jaupaj, 2021).
The main comparison among two of them is related with the levels of management that is
there is a long hierarchy in tall organisational structure whereas there is no level in the flat
structure. Other than this, the tall structure comprises of several departments like human
resource, finance whereas in relation to flat structure there is a presence of direct contact which
does not involves any involvement of different department.
Business functions:
The business functions refers to different individual department in the organisation which
are segregated according to their working field and specialisation. Business comprises of
functions like human resource, production, marketing, etc. The human resource department is
concerned with hiring and recruiting different employees for the business along with providing
proper training & development to them. The impact of this function upon the organisation is
that this assist in finding a right candidate for the job position who will work towards the
attainment of organisational goal (AlNaaji and Qusef, 2021). Example at Aldi, the department
conducts interview and organises various training sessions for the employee's in order to enhance
the organisational performance. The department of marketing deals with the promotion and
advertisement of the company's product or service with an aim of making high sales and brand
image. The impact of this function on Aldi is that this assists in attracting more customers
through innovative ideas of placing ads. Another is the department of finance which is
established with the purpose of allocating and maintaining the company's finances which is the
blood of any organisation. This is treated as the most important department of a business. The
main impact of this function upon Aldi is that this invites various investors to invest in the firm
with the help of which the company would be able to accomplish their projects (Fayziev, 2020).
Organisational Culture:
The concept of an organisational culture denotes to the way which directs the firm in
achieving their targets with the presence of belief, shared values as well as the general favourable
environment and culture. This is also noted as a practice that is being utilised by the
organisations to have effective management of their employee's who are required to maintain
ethical as well as moral conduct within their behaviour. This generally talks about psychology,
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sociology and other philosophies that is essential in a company for proper actions. The concept
of positive culture develops a valuable as well as ethical environment within the business
premises. As the business is having effective organisational culture that automatically represents
the working behaviour of their employee's as well as tries to retain them for a longer period of
time. The positive culture influences the company's employee's in managing their work with high
efficiency upon which the organisational performance depends (Mohammed and et, al., 2021).
The organisation Aldi is a famous multinational company which manages their culture of
positive climate within the business that helps them in having a favourable approach towards the
enhancement of business performance at whole. The company tries to maintain a happy working
culture through developing proper communication as well as behaviour. Hence, the
organisational culture is essential within all the organisations as this promotes as well as
manages the general positive success in the business through focusing upon the development of
non profit behaviour by them (Rao, 2020).
CONCLUSION
From the above report, it can be concluded that a business comprises of various forms
that assists in having generating livelihood along with providing an opportunity of employment.
The business can be established by a single person or can be by two or more which according to
their features carries different advantages & disadvantages. A company which survives in the
industry is required to implement some organisational structure through which they are able to
achieve task more successfully. These could include tall or flat organisational structure or
various other than this. It can also be concluded that the various business functions such as
human resource, marketing or finance performs their function individually but carries a common
aim that is effective attainment of organisational goal. Lastly, it can be said that the culture of an
organisation develops a positive environment within the company as well as in the eyes of
employee's that makes a great impact on their performance & upon the overall business.
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REFERENCES
Books and Journals
COLBERT DIAS, J.E.A.N. and FERREIRA, A., 2020. THE INCORPORATION OF THE
SPECIFIC PURPOSE COMPANY IN THE PUBLIC-PRIVATE PARTNERSHIPS
AND ITS EQUITY AUTONOMY. Revista Percurso. 2(33).
Rye, J., 2020. What is the difference between a sole trader and a limited company?. In Setting Up
and Running a Therapy Business (pp. 132-134). Routledge.
Greer and et. al., 2021. Public–Private Partnerships in the Water Sector: The Case of
Desalination. Water Resources Management, pp.1-15.
Bhebhe, S., 2021. Proposed independent organisational structure for memory institutions in
Zimbabwe and South Africa. Collection and Curation.
Jaupaj, E. and Jaupaj, A., 2021. The effects of organizational design and bureaucracy on
employees commitment, creativity, and motivation: A comparative study of two
Swedish IT companies.
AlNaaji, H. and Qusef, A., 2021, July. A Conceptual Framework for Representing Business
Functions and Their Role in the Quality of E-Banking Services. In 2021 International
Conference on Information Technology (ICIT) (pp. 627-633). IEEE.
Fayziev, T.R., 2020. FUNCTIONS AND TYPES OF MANAGEMENT IN SMALL
BUSINESS. Мировая наука. (3). pp.48-51.
Mohammed and et, al., 2021. The Impact of organizational culture in promoting the elements of
the Six S. THE IRAQI MAGAZINJE FOR MANAGERIAL SCIENCES. 17(67).
Rao, S.D., 2020. Impact of Organizational Culture on Organizational Effectiveness: Mediating
Role of Social Media and Employee Engagement (Doctoral dissertation, IIT
Kharagpur).
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