Understanding Business Organisations

This essay discusses different types of business organizations, tall and flat organizational structures, business functions, and the impact of positive organizational culture on business success using Hotel Premier Inn as an example.

Understanding
Business
Organisations

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
The aim of this essay is to give brief discussion on business management. Business
organisation can be defined as an enterprise which is formulated for the purpose of doing some
commercial activities by individuals or group of people. The function of business organisation is
to provide goods and services to the consumer according to their needs, taste and preferences.
The size of organisation differ business to business (Bowen and Morosan, 2018). The enterprise
so formed must comply with all the legalities. The hospitality industry that has been taken is
Hotel Premier inn. It is one of the largest hotel of UK which was founded on 1987 by Whitbread.
This essay will include discussion on three different types of business, tall and flat structure of an
organisation with their advantages and disadvantages, different functions of the business and
impact of functional management on the organisation and organisational culture and impact of
positive organisational culture (Erthal and Marques,2018).
MAIN BODY
There are several types of business organisation such as Sole Proprietorship, Partnership,
Cooperatives etc. Sole Proprietorship refers to an enterprise which is operated and owned by a
single person. In this owner and business are considered as single entity. The liability of a sole
proprietor is unlimited (Fath, 2022). Another name used for sole proprietorship is Sole trader.
The advantages of Sole Trader are it is very easy to form and dissolve a sole trader business as
this business as less legalities and can be formulate with minimum cost. The decision making
process in this business is very fast as the power of decision making lies in the hand of sole
trader. This business helps the business owner in formulating direct relationship with the
consumer. The disadvantages of this business are as in sole proprietorship business, the owner
has unlimited liabilities and responsibilities with unlimited control over the business (Goody,
2018). The source of investment for a sole trader is very limited to personal savings or
borrowing from friends and family and burden of decision making also lies on a single person.
Partnership can be defined as an legal and formal agreement between two parties to operate an
enterprise and share its profits and losses. The advantages of Partnership are tax advantages as
the firm do not have to pay tax separately on the shared profit (Januarita, 2021). It is easy to
establish a partnership firm as it can be formed either by oral or written agreement. The work of
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partnership firm is done with flexibility as no control of government is imposed on these firm.
The disadvantages are the liabilities of the partner are unlimited and the public easily don't show
faith on these firms, the decision making process is very complex as consent of each partner is
required every time(Stephenson,2018). Cooperative refers to the association of the people who
come together to achieve a common objectives and these organisations are maintained by the
members having voting right. The advantages are these enterprises have open memberships, it
provides equal voting right to every member and the liability of the members are also limited.
The disadvantages are lack of secrecy, low business acumen and lack of interest. Premier inn is a
subsidiary and private limited company which is formulated to provide hospitality services to the
tourists and the local residents.
Organisational structure can be defined as a system which is used for systemic flow of
work in the organisation. Tall organisational structure is also defined as hierarchical structure
which consists of many leaders as well as layer of management. In this structure top down
approach is used. The manager has narrow span of control over their subordinates. In
hierarchical structure, authorities and responsibilities are clearly defined to everyone which helps
in enhancing efficiency and productivity of the employees. This structure also helps in boosting
the employee motivation as there are more chances of promotions and the employee is getting
reward and recognition on the basis of their performance (Kaine and Josserand, 2019). The
disadvantages are that there are many levels of hierarchy and due to multiple layers’
communication can get difficult and the operations in this structure are comparatively more
expensive because of additional layers. Flat organisational structure refers to the structure which
consists of very less or no layer of management between staff and management. In this structure
employees are not supervised by the managers. The advantage of using flat structure is enhanced
employee morale and productivity, better communication and low operational cost because of
less layers (Racela and Narula,2019). The disadvantages of this structure are that the managers
have more subordinates, higher workload among employees. Premier inn has Vertical integrated
model structure which is also known as tall structure. This structure helps the organisation in
gaining competitive advantages over others by fulling the desired need of the consumers and
which also helps the hotel in retention of their customers (Kumar, 2019).
Business organisation operates with several functions such as Human resource
management, Production, Marketing, Operations etc. These functions helps the businesses to
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operate smoothly and effectively (Lee, 2022). Human resource management can be referred as
an department of an organisation that takes care of recruiting, selecting, hiring, managing and
deploying employees of the organisation. HRM plays an important role in development of an
employee as it prepares an employee for bigger and difficult responsibilities and task.
Development of employees is very necessary for organisation growth and success. Marketing
refers to the process of promoting buying and selling of goods and services. Marketing can be
done through various modes such as television advertisements, radio, magazine, newspaper and
social media etc. It is very important process as it helps in retaining old consumers and attracting
new ones (Li and et.al., 2018). It also plays an important role in development of product, market
research, product distribution, public relations etc. Everything that happens in a business
organisation for its smooth functioning is known as Operations. Business operations consists of
processes such as conversion of input into output, product design, capacity planning, quality
control, inventory management and forecasting. Management of operations is important for
business organisation as it helps in effective control, management and supervision of
functionalities of the organisation. These functions play a crucial role in effective functioning of
Hotel premier inn as these functions helps the Hotel in providing quality services to their
consumers which help in retention of consumer and also help the company to maintain its
profitability (Nayak, Walke and Kokare, 2019).
Organisational culture can be defined as environment which is required in the
organisation. This states about the values, culture, custom and beliefs created and followed in the
organisation by the employees and the management (Pan and Froese,2022). The role of
organisational culture is very crucial in organisational growth and success because following
such culture helps the employees in forming opinions according to the need and demand of the
organisation. Strong and effective organisational culture aids the organisation in several ways
such as enhanced efficiency of the employees, customer satisfaction rates get higher and
communication gap is mitigated between top management and the employees. A positive and
strong organisational culture encourage employees to work hard for the success of the
organisation and it also plays an important role in long term success of an organisation (Park and
Min,2020). It helps in creation of a workplace where employees have high job satisfaction and
they are motivated which also helps in enhancement of their productivity. It also helps in
building good interpersonal relationship in the organisation (Paulet,Holland and Morgan, 2021).
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Another benefit of positive organisational culture is that it helps in building strong relationship
with the consumers and can become key point of differentiation and it also gives a competitive
edge over others in the market that helps the organisation in attracting more consumers,
employees and partners. The organisational culture of Hotel Premier inn is very effective. All
the employees are satisfied with their work, team and compensation which help them to work
efficiently (Prasanna and Haavisto, 2018). The organisation uses combination of pay such as
equity, stock and benefits etc. to keep their employees motivated. It is also believed that the
environment of the hotel is positive and comfortable. The working hours of the company is also
flexible. Therefore, it can be stated that overall the company's organisational culture is positive.
CONCLUSION
The above essay gives a brief discussion about Business organisation. It has been
stated that business organisation has its own working culture, style and technique. A brief
discussion on Hotel Premier inn. The different types of business such as Sole trader, Partnership,
Cooperative society etc. has been discussed with their advantages and disadvantages in the essay.
It has been known that Hotel premier inn is a subsidiary private limited which is operated in UK.
The tall and flat organisational structure has also been highlighted above with their advantage
and disadvantages. Hotel Premier inn follow tall organisational structure which help the
organisation in gaining competitive advantage over other in the market. Different business
functions have also been discussed in order to see their impact on the organisational
functionalities. At last the organisational culture and the impact of positive organisational culture
on the business has also been discussed.
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REFERENCES
Books and Journals:
Bowen, J. and Morosan, C., 2018. Beware hospitality industry: the robots are
coming. Worldwide Hospitality and Tourism Themes.
Erthal, A. and Marques, L., 2018. National culture and organisational culture in lean
organisations: a systematic review. Production Planning & Control, 29(8), pp.668-687.
Fath, R.A.R., 2022. Civil Liability for the Establishment of a Micro, Small, and Medium-sized
enterprise sole proprietorship. Jurnal Hukum dan Kenotariatan, 6(2), pp.815-825.
Goody, J., 2018. The social organisation of the Lo Wiili. Routledge.
Januarita, R., 2021. The Newly Sole Proprietorship as Limited Liability Company in Recent
Indonesian Company Law. MIMBAR: Jurnal Sosial dan Pembangunan, 37(1), pp.221-
231.
Kaine, S. and Josserand, E., 2019. The organisation and experience of work in the gig
economy. Journal of Industrial Relations, 61(4), pp.479-501.
Kumar, S., 2019. YOUTH DEVELOPMENT THROUGH COOPERATIVE SOCIETIES IN
INDIA: A CASE STUDY OF NATIONAL YUVA COOPERATIVE SOCIETY LTD.
(NYCS). In Молодежь и будущее: профессиональная и личностная
самореализация (pp. 411-415).
Lee, S., 2022. The myth of the flat start‐up: Reconsidering the organizational structure of start‐
ups. Strategic Management Journal, 43(1), pp.58-92.
Li, X., and et.al., 2018. Determinants of partnership levels in air-rail cooperation. Journal of Air
Transport Management, 71, pp.88-96.
Nayak, C., Walke, S. and Kokare, S., 2019, February. Optimal structural design of diagrid
structure for tall structure. In International Conference on Reliability, Risk
Maintenance and Engineering Management (pp. 263-271). Springer, Singapore.
Pan, Y. and Froese, F.J., 2022. An interdisciplinary review of AI and HRM: Challenges and
future directions. Human Resource Management Review, p.100924.
Park, J. and Min, H.K., 2020. Turnover intention in the hospitality industry: A meta-
analysis. International Journal of Hospitality Management, 90, p.102599.
Paulet, R., Holland, P. and Morgan, D., 2021. A meta‐review of 10 years of green human
resource management: is Green HRM headed towards a roadblock or a
revitalisation?. Asia Pacific Journal of Human Resources, 59(2), pp.159-183.
Prasanna, S.R. and Haavisto, I., 2018. Collaboration in humanitarian supply chains: an
organisational culture framework. International Journal of Production
Research, 56(17), pp.5611-5625.
Racela, O.C. and Narula, R., 2019. Feature Suites Company Limited: The Management Contract
of Manor Inn. Asian Case Research Journal, 23(02), pp.519-537.
Stephenson, A.V., 2018. The impact of personal income tax structure on income inequality for
Belgium, Bulgaria, Germany, Lithuania, and Poland: A comparison of flat and
graduated income tax structures. Atlantic Economic Journal, 46(4), pp.405-417.
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(Bowen and Morosan, 2018).(Erthal and Marques,2018).(Fath, 2022). (Goody, 2018)(Januarita,
2021). (Kaine and Josserand, 2019).(Kumar, 2019).(Lee, 2022).(Li and et.al., 2018)(Nayak,
Walke and Kokare, 2019)(Pan and Froese,2022)(Park and Min,2020)(Paulet,Holland and
Morgan, 2021).(Prasanna and Haavisto, 2018)(Racela and Narula,2019)( Stephenson,2018)
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