Understanding Business Organization - Advantages, Disadvantages, Organizational Structures, Functions, and Culture

This report discusses the advantages and disadvantages of different types of businesses, compares and contrasts organizational structures, discusses different business functions, and explains the impact of positive organizational culture on the success of an organization. It covers topics such as sole trader, partnership, and limited company, as well as human resource management, production, operations, and more. The report also emphasizes the importance of effective business organization and maintaining a positive work culture.

Understanding
Business Organization

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Define and outline the advantages and disadvantages of the different types of business, for
example sole trader, partnership and limited company.........................................................3
Compare and contrast organizational structures.....................................................................4
Discuss different business functions such as human resource management, production,
operations etc. and the impact of their functional management activities on organizations and
the people with in the organizations.......................................................................................5
Define organizational culture and explain how positive culture impacts on the success of an
organization............................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organization refers to designing and implementation of structure by top level
management for achieving their vision, mission and objectives. Effective business organization
also helped to increase the productivity and work efficiency of employees in organization. The
main motive of business organization is to manage the whole organization systematically and
provide right direction to employees for run their operational activities smoothly. Business
organization is totally controlled by top level management. Business are also important for
maintain good relationship with customers for a long time. In this report various forms of
company are explained which includes sole proprietorship, partnership, corporation and so on.
This report is prepared on the basis of secondary data which includes newspapers, magazines,
journals and so on. This report is also prepared on the basis of various internal functions of
organizations such as human resource management, etc. Effective business organization also
helped to maintain the loyalty of the employees towards organization for a long time.
TASK
Define and outline the advantages and disadvantages of the different types of business, for
example sole trader, partnership and limited company
Sole trader – It means whole organization is run by single ownership (Aversa, Hernandez and
Doherty, 2021). In context to tourism industry hotels are run by individual and they also
maintained their quality in their product.
First advantage is business are easily started by individual as a start-up with very less
legal formalities and the investment are also made as a single ownership. Secondly, Decisions
are perfectly worked and employees get right direction in single ownership company.
First disadvantage is Single ownership based company faced difficulty to receive funds
from the market share because market shares are not remain same (Banerjee and Arjaliès, 2021).
Secondly, company has unlimited liability which creates negative impact on company in the
form of increasing risk.

Partnership – It refers to the contract between one or more parties for running the organization
(Roos and Hahn, 2019). In context to tourism industry transportation are connected with hotels
and tourist places for their travelling.
First advantage is in partnership the cost are divided according to contract which leads
to decrease the financial stress of company owners. Secondly, according to contract roles and
responsibilities are divided between the employees which leads to increase better life balance of
employees.
First disadvantage is In agreement autonomy are also decreased it means that decisions
are not taken by single owner (BRĂTIANU, 2018). Secondly, lack of stability are obtained in
this system due to passing wrong information to employees by seniors.
Limited Company – It means companies are limited in numbers and their main function is do
welfare activities towards public. In tourist industry Tourist guides plays the important role for
introducing various cultures of their country.
First advantage is these types of organizations are not bound with any type of company
it means it is a separate entity and have different powers. Secondly, shares of these type of
organization are easily transferable because they done their activities legally.
First disadvantage is due to welfare activities organization earns very limited profits
which leads to decrease of productivity (Leazer and Montoya, 2020). Secondly, Competitors
easily decrease their popularity in market because these welfare activities highly create threat for
them.
Compare and contrast organizational structures
Organisational structure refers to coordination, allocation and supervision which is used
by tourist industry for achieving their organizational vision, mission and objectives (Oron
Semper, Scalzo and Akrivou, 2021). In organization structure various departments are involved
to run their functions smoothly on daily basis. The structure which are followed by the industry
are described below -

In Tall structure structure various leaders and management are involved to control the
employees systematically. The various task and assignment are assigned to employees with these
leaders and management to run their operational activities smoothly (Rawashdeh, 2018). In this
structure misunderstanding are highly occurred between employees due to late receiving of
information by the senior level management (Chen and Lin, 2019). In this structure employees
are not directly by the manager .In this method the decisions are made by top level at very slow
level. But in context to tourism this structure is not highly effective for customers because if
organization facilitate the services to customers in long time organization received negative
feedback from consumers. Due to this reason it is necessary that industry must facilitate services
to consumers in fast way for achieving the success.
In Flat structure structure limited number of management and leaders are there for
managing the whole organization. In this structure process are running in fast manner which
leads to increase the work efficiency and productivity of employees in organization. In this
structure effective communication and coordination are maintained between employees with the
help of reliable information. In this structure employees are directly monitored by the manager
which decreases the chance of the mistakes occurred by the employees. The workload of the
employees are easily managed by the managers because in this stage orders are directly provided
by the top level management or manager (Durmishi, 2018). In context to hotels in tourism
industry they follow the flat structure for run their activities smoothly.
Discuss different business functions such as human resource management, production,
operations etc. and the impact of their functional management activities on organizations
and the people with in the organizations
The functions which are used by industry for running their activities are described below-
Human resource – The role of human resource is to manage the employees and
activities of whole organization systematically. HR also provide advanced training to employees
for increasing the use of their talent and skills in workplace. In context to tourism industry they
provide proper training to employees in aspect of behaviour and attitude for maintain better
relation customers for long time.
Production – The role of production department is to prepare the product in workplace
with special ingredients, ideas and advances equipments. For industry tourist is very important
for run organization smoothly. Due to these reason they prepared best quality food products for

maintaining customer satisfaction level. In context to tourism industry management used skilled
and qualified employees for managed the customers smoothly in any situation (Gerdruang and
Bunchaphattanasakda, 2021). This also helped to increase the purchasing power of buyers for
both product and services.
Operation – It covers various functions such as manpower management, control in
production process and implementation of daily production plan (BRĂTIANU, 2018). It means
in this stage functions of all departments are worked and changes are made according to
customers desires and wants (Glaser, Pollock and Adderio, 2021). In context to tourist industry
in hotels, management made customization in their product according to consumer taste.
Define organizational culture and explain how positive culture impacts on the success of an
organization
Organizational culture refers to the environment or atmosphere which was created by
company for employees and customers. These effective culture helped to maintain proper
communication with both employees and consumers in long term. The positive culture impacts
the organization on various ways which are described below -
Firstly, it is necessary for industry that they engage their employees in work time to time
with the help of various interesting activities (Aversa, Hernandez, and Doherty, 2021). It
includes organizing various sports events, providing task according to target and facilitate
effective training and development to employees. It leads to increase the skills and abilities of
employees in their work and also for achieving company's vision, mission and objectives.
Secondly, team work is also important for run the operational activities of industry
smoothly (Janssens and Zanoni, 2021). Without team work proper solution are not prepared for
employees and customers. It means proper solution is necessary for optimum utilization of
human resources and also for attract the tourist in large number which leads to increase their
profit.
Thirdly, Effective communication is also important for managing the customers and
employees. Because it is necessary that employees must know the different languages to handle
the tourist customers. With the help of idea of various languages employees easily increased the
productivity of industry. Then according to that employees get financial benefit.

CONCLUSION
After the analysis of above information it is understood that effective business
organization is very essential to understand the problems of the employees. Then according to
that management must provide proper training to workers for increasing their career growth.
Effective training and development also helped employees to provide best quality product and
services to customers. The proper coordination between organizational departments such as
human resource, production and operation department are essential in various aspects. It includes
managing company expense, producing quality product in time and so on. Good business
organization also helped to maintain the proper structure of company such as tall and flat
structure and it plays important role to run the organization smoothly. It also helped to maintain
positive work culture in the business between the employees which leads to increase workers
loyalty towards organization for long time. It also helps to increase the growth of employee and
industry in long term.

REFERENCES
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