Understanding Business Organizations: Types, Structures, Functions, and Culture

This report discusses the advantages and disadvantages of different types of businesses, tall and flat organizational structures, functions of business, and the impact of organizational culture on success. It also includes examples from the hospitality and tourism industry. Course code MGBBT0UBN.

Understanding
Business
Organizations
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Table of Content
INTRODUCTION……………………………………………………………………………...3
MAIN BODY
Define about different types of businesses along with their advantages and disadvantages as
well………………………………………………………………………………………………..3
Contrast and compare tall and flat structure of an organization and also include the example of
hospitality and tourism industry examples………………………………………………………4
Discuss different functions of business such as production, human resource management,
operations etc and the impact of functional management activities on the people and organization
within the organizations…………………………………………………………………………..5
Define organizational culture and also explain that in which manner positive culture impacts on
the success of organization……………………………………………………………………….6
CONCLUSION………………………………………………………………………………….6
REFERENCES…………………………………………………………………………………..8
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INTRODUCTION
Business organization refers to an entity formed for the purpose of carrying on
commercial enterprise. It also describes how business are structured and how their structure
supports in terms of meeting towards the goals. Business organization is very important because
these organization help in terms of making an economy more stronger and bold in terms of
productive nature as well(Tucker., 2021). The present report will cover discussion about
advantages and disadvantages of different types of businesses and also about comparison
between tall and flat structure of an organization. In addition to this, the report will cover
analysis about different functions of business and their impact of functional management
activities on people and organizations as well. Moreover, the report will cover discussion about
the organizational culture and in which manner positive culture impacts on the success of
organization.
MAIN BODY
Define about different types of businesses along with their advantages and disadvantages as well
Business basically refers to an entity or organization which is engaged in industrial,
commercial, professional or industrial activities as well. There are different kinds of business
such as sole trader, partnership and limited companies. Their advantages and disadvantages are
defined into the following manner:
Sole trader: A sole trader is also known as the sole proprietorship and it is a small business
structure where one individual runs and owns the entire business (Boyton and et.al., 2015).
Examples of sole trader can be IT consultation service, a local grocery.
Advantages: A sole trader is basically their own boss and keep all profits with themselves. Their
start up cost is also very low and also has maximum privacy level as well.
Disadvantages: Under sole trader, they have unlimited liability for debts and the capacity to raise
capital is also limited. The daily basis decision of business is also responsible for the sole trader.
Partnership: A partnership is a kind of formal arrangement by two or more parties to operate
and manage the business and share its profits as well. Example of partnership company: Red Bull
and Go Pro.
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Advantages: Within partnership, it bridges the gap in knowledge and expertise as well. It has
more cash and cost savings as well(Matthews and et.al., 2018). They have more business
opportunities and also has better work life balance as well.
Disadvantages: It has more liabilities and also have loss of autonomy as well. They also have
lack of stability and also have certain kind of future selling complications.
Limited Companies: A limited company is a kind of business organization where the owner’s
assets and incomes are distinct and separate from the company’s assets and income as well.
Example of limited company: Apple.
Advantages: It has higher take home pay and also claim on limited company expenses as well.
Disadvantages: Within this head, a certain amount of paper work is involved and accounts also
needs to be filed on the yearly basis.
Contrast and compare tall and flat structure of an organization and also include the example of
hospitality and tourism industry examples
Tall structure of organization: A tall structure organization is an organization which is broken
down into a distinct hierarchy. Within this structure, an organization have number of manager
and each of them is responsible for controlling a portion of the organization. Within the tall
organizational structure, it basically result into one long chain of command which is similar to
the military. As the organization grows, the number of management level also increases and the
structure also grows taller. The tall structure organization lies in managerial control and also
have clarity level as well. The narrow span of control also allows for close supervision of
employees. They also provide a distinct, clear layers with proper lines of responsibility and
control with clear promotional structure as well. For example, Marriott international Inc hotel
which is a very large brand and also has different departments and each have the different
managers as well.
Flat structure organization: It is an organizational model which has relatively few or no levels
of middle management between the employees and the executives as well. Their main goal is to
have a little hierarchy as possible(Seth and Rehman., 2022). These structure type of organization
is also known as the self-managed organization. Within this type of structure, employees have
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more responsibility and are more involved into the conversations and transparency is also act as
the big advantage when there is less bureaucracy within the organization. Flat organizational
structure focuses on the empowerment of employees rather than adhering to the chain of
command. By encouraging autonomy and self directions, flat structures attempt to tap into
employees for creative talents and to solve problems into collaborative form as well(Sluyterman.,
2020). It has been observed that small organizations and start ups have the flat structure because
they have less need of hierarchical management and also have fewer number of employees as
well. For example, Fowey’s old quay house hotel.
Discuss different functions of business such as production, human resource management,
operations etc and the impact of functional management activities on the people and organization
within the organizations
There are different functions of business which are defined into the following manner:
Human resource management: It refers to the strategic approach to the efficient and effective
management of people in an organization or company such that they help their business in terms
of gaining the competitive advantage as well. It is also designed to maximize performance of
employees in the services of an employer’s strategic objectives.
Production: It is the department which is a group of functions within a business which is
responsible for the manufacturing of goods.
Operations: Operations management is basically the administration of practices of business in
order to create the highest level of efficiency which is possible within an organization. These are
the main functions of business and they also have positive impact on the organization and people
as well.
In the overall manner, every department has their impact on the performance of people and
organization as well (Sardanelli., 2020). Human resource management is basically the
management of people or employees at the organizational level so they have the supreme power
to take decision about the performance of an individual and decides their financial parameter as
well. The production department is also dependent on the working of employees and the decision
taken by the overall organization. The operation department also contribute in terms of
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enhancing the performance of individual into context of quality due to which automatically
people and organization performance get enhanced into positive manner.
Define organizational culture and also explain that in which manner positive culture impacts on
the success of organization
Organizational culture: It refers to the collection of expectations, values and practices which
guides and inform the actions of all team members. A great culture basically exemplifies the
positive traits which lead towards the improved performance. In the overall manner,
organizational culture affects the all aspects of business and when the work place culture aligns
with the employees they are more likely to feel more supported, comfortable and valued as well.
Culture plays a very significant role when its about attracting talent and out performing the
competition as well. The culture of an organization is also the top indicator of employees
satisfaction and also one of the main reason that two third employees stays in their job.
The positive culture impacts the success of an organization into result oriented manner
because a positive culture enhances the performance of employees into positive manner
(Pearson., 2016).Positive culture also lead towards the innovation and invention due to which
employees can perform with their full potential in order to achieve their organizational goals and
objectives into positive manner as well. In this manner, positive culture impacts on the success of
an organization into result oriented manner. That’s why its very important that organizational
culture should be into positive form in order to achieve out of box result as well.
CONCLUSION
The above stated report concludes that business organization plays a very significant role
at the organizational level. It has been concluded that there are different kinds of business
organization and every kind of business organization has their own pros and cons as well. It has
been determined that there are different kinds of organizational structure and every
organizational structure has their own characteristics. There are different kinds of functions of
business such as human resource management, production and operations and every
organizational function has their impact on the people and organization as well. The culture of
organization plays a very significant role due to which people and overall performance of
organization get enhanced into positive manner.
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The positive work culture basically enhances the potential level of employees into result oriented
manner. So business organizations are very important in order to make an economy more
stronger and productive as well.
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REFERENCES
Books and Journal
Tucker, R., 2021. Using business leadership models to analyse leadership stances in a
developmental organisation in the cape flats. Acta Theologica, 41(1), pp.141-175.
Boyton and et.al., 2015. Suboptimal business intelligence implementations: understanding and
addressing the problems. Journal of Systems and Information Technology.
Matthews and et.al., 2018. Human factors and project challenges influencing employee
engagement in a project-based organisation (PBO). International Journal of Managing Projects
in Business.
Seth, D. and Rehman, M. A. A., 2022. Critical success factors‐based strategy to facilitate green
manufacturing for responsible business: An application experience in Indian context. Business
Strategy and the Environment.
Sluyterman, K., 2020. Decolonisation and the organisation of the international workforce: Dutch
multinationals in Indonesia, 1945–1967. Business History, 62(7), pp.1182-1201.
Sardanelli, D., 2020. Approach to Dual Marketing: Re-organisation of Structures and
Development of Competencies. In Beyond Multi-channel Marketing. Emerald Publishing
Limited.
Pearson, S., 2016. Building brands directly: creating business value from customer relationships.
Springer.
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