Analysis of Business Organisation: Structure, HRM, and Culture Impact

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This report provides a comprehensive analysis of business organisations, covering various aspects such as different business types (sole trader, partnership, limited company) and their advantages and disadvantages. It compares and contrasts different organisational structures, including functional, divisional, and matrix structures, highlighting their impact on communication and decision-making. The report also examines the functionalities of a business, focusing on human resource management, production, and operation departments, and their influence on firm and employee performance. Furthermore, it discusses the significance of organisational culture and its impact on business success, emphasizing the importance of a positive and supportive work environment. The study concludes that effective human resource management, well-defined organisational structures, and a positive organisational culture are crucial for achieving business goals and enhancing overall productivity. Desklib offers more solved assignments and resources for students.
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UNDERSTANDING
BUSINESS
ORGANISATION
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
PARAGRAPH 1: TASK 1..........................................................................................................4
PARAGRAPH 2: TASK 2..........................................................................................................5
PARAGRAPH 3: TASK 3..........................................................................................................6
PARAGRAPH 4: TASK 4..........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business organization refers to the term where so many people work for the particular
task or gaols achievement for raise money, improving society, raise country's economy and
reduce unemployment rate and many more. It classifies into sole trader, partnership, and firm
or corporation. They three categories has different work environment and their owner has
responsibility to develop different approaches according to the business size ( Vashghani
Farahani, Teymournejad and Bamani Moghadam, 2021). Development of business activity
organization mainly consider powerful human resource management in the business because
overall activities only done by them. This report will clearly provide information about
advantages and disadvantage of different business, multiple organization structure, how firm
archive their goals with the help of human resource management and their performance. This
study will also give idea about how effective organizational structure positively impacts on
business success.
MAIN BODY
PARAGRAPH 1: TASK 1
Various types of business and their advantages and disadvantage:
Sole trader:
Individual who develop their business at their owner level, and they have responsibilities
for overall business performance. Productivity, profit totally depends on their performance of
particular. Four ex, Davison Canners and many more they develop overall business activities on
the basis f their power.
Advantages is that they can start their business activity with lower margin and lower risk and
their profitability and their knowledge. Disadvantages like they not engage any other employee
towards with business activity, and they have no support from others, risk, decision- making
each and every aspect depends on the individual.
Partnership:
Partnership is the formal process where two people create legal agreement for individual
business. Business partners share all values of business which means liabilities, expenses, profit
share each and every aspect of business is half percent.
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Pros is that they can start their business activity with the good cash, and they make
decision effectively (Ipsen and et.al., 2021). Corns is that some legal aspect and one particular if
they not develop interest in business activity and one particular not effectively participates in the
task so it highly influences business performance.
Limited company:
A firm where organization provides various things, and they provide their services in
market with large number of stakeholders. Firm can develop by the individual or partner,
Company has particular name which is not generates by the other it considers as and legal entity.
Advantages of this type corporation is that they develop employment, and it beneficial for the
country's economy expansion also they provide services with effective manner. Disadvantage it
takes higher cost of registration, is company not provide legal amount to their stakeholder they
have power to close their overall business program, and the formalities of this type of firm is
complex task (Neu, Lahann and Fettke, 2021). Examples Aviva Plc, Capita plc and many more
companies they provide their services with legally and always believes in expand their services
in market with new idea.
PARAGRAPH 2: TASK 2
Compare and contrast organizational structure:
Organisation structure is proper and effective approach which useful for expansion of
effective flow of communication, changes in thought and ideas with proper manner, proper
decision- making process and many more. Structure totally depends on the business owner have
potential to develop and company set up and it depends on that how much they capable to invest
in the business program. Various organisation structure are as follows,
Functional structure:
This types of structure when individual has proper skills and knowledge, and they
provide guidance to their team. It is very well managed structure where individual can share their
thought and explain their employee to their team leader and then team leader discuss. Company's
owner mainly prepares strategy, and they develop plans and completion of this activity they
explain to their manager for particular task. And manager explain to their team member and
provides them information how to perform for task. Cause of this structure is that individual not
directly explain their problems to owner. Tesco, Starbucks and many more comapnies applies
this hierarchical structure, so they manage their work efficiently.
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Divisional structure:
Structure where organization divided into the groups and each group has their owner
responsibilities for particular tasks and their has multiple departments and every individual
department has their owner responsibilities. Effectiveness of this structure is that individual
performs effectively within the proper direction, but they way of invidious guidance can
influence the employee performance and owner not capable to directly analyse the employee
performance. It is very broad structure of business (Shahrajabian, Sun and Cheng, 2021).
McDonald's corporations they lead their fast food chain with this structure, because they have so
many stores and every store require one manager.
Matrix structures:
It refers to the process where people connect with the whole organization for the
particular task. And according to business task company manager, leader and owner has power to
change department of employee. This process is also known as hierarchy process, which only
develop for the particular task completion. Almost this process applies by the large number of
employee organization because it is little complicated task and this set up is also has step by step
process of communication and thought discussion activity. The major threat of this stricture is
come time people become confused, and they not have clarity what they do and when
organization develop performance measurement is also complicated task. Amazon, forever21
etc. company follows and develop this structure because they provide services is broad area, and
the organization owner develop effectiveness n their business activist throughout the application
of this structure.
PARAGRAPH 3: TASK 3
Different functionalities of the business
Human resource management:
Human resource management is the strategical approach to manage the resources of the
organisation. Every company has their own human resource management cell who can manage
the activity of their business (Boselie, Van Harten and Veld, 2021). HR team are responsible for
recruiting, training, coaching and managing the employee within the organization. They are in
charge to provide better applicant or candidate to the company to carry out their company's
operation effectively. They are also responsible to give competitive advantage to their company.
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This HR team are made to maximize the productivity of the employee to accomplish the goals of
the company. Such HR practices are applied by the Sainsbury company which are needed to be
implemented to provide benefit to their company those practices are- recruitment and hiring
procedure of new applicant, training and mentoring to new applicant, job analysis, workplace
safety.
Production department:
Production department can be explained as a set of instructions and tools which are
required to design a product for the company. It usually includes the technical tools to process
the informative report of the company which they made based on the market analysis. Production
team of the Sainsbury company always ensures the quality of report before proceeding with the
development process.
Operation department:
Operation department is the administrative block of the organization they maintain the
high efficiency in the organizational operation so that it will be carried out as a good successful
task which can benefit the organization (Di Stefano, Scrima and Parry, 2019). This department
is in charge of changing raw materials into the product and services for the organization. Good
product can increase the market value of the organization. Therefore, Operation department of
the Sainsbury company manage all the their internal task for the successful completion of their
organisational operation.
Impact on functional management activities on firm and on employee
Organization develops by the management of multiple aspect. Every department has
different work process, various people, their behaviour attributes. So its important that company
manage their different department with the utilization of theory, models and structure.
Management of functional activity manager has power to manage every task smoothly
they have authority to engage people and improves their performance for task completion. Its
essential that company develop and prepares multiple sections because it improves the quality of
work and people have clarity about their task and when leader provides them guidance then it
will highly improve the quality of performance (Awan, Nauman and Sroufe, 2021). So powerful
functional management activities is beneficial aspect for overall organization performance and
employee also feel comfortable, and they effectively perform their given task.
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PARAGRAPH 4: TASK 4
Organisational culture and its impact on business for organisation
Organisational culture is defined as a set of values and practices which defines the
behaviour of employees and employer within the organization. For the success of the company
every organisation need a healthy and supportive environment. It allows all the employee to
interact with each other. Positive culture can be defined as in which organization operates in such
a healthy or supportive environment which allow all the employee to work better, they come to
their workplace with happy and healthy mind. It allows all the employee to work better and to
achieve the organisational successive goals. Positive culture gives the positive impact on
organisation as it allows them to achieve their all goals and objectives.
Positive culture defines the company's inner and external value it defines what
organisation operates their business what they do to make success for their company. It defines
the core values of the organization positive culture improve the core values of the organization
which can be seen in a successful completion of company's operation. Strong and good
organizational culture keeps employee connected to the company it improve their work
performance, it also keep them motivated towards their work and can do better to achieve the
company's goal (Matkó and Takács, 2017). Therefore, positive work culture is very important for
the company for their success, through which company can easily retain their employees and can
perform better operation to earn the good revenues. This type of culture is followed by the Tesco,
Mark and Spencer and Sainsbury company therefore they are able to retain their customers and
are able to make good revenues for their company.
Timeline:
Activities Jan Feb Mar Apr May June
Understand
business
concept
Advantages
and
disadvantages
of multiple
business
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Identified
organization
structure
Functions of
business
Organization
culture
Impacts of
organization
culture
Conclusion
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CONCLUSION
It has been summarized form the above reflective study that business organization has so many
type ad their activities and performance totally depends on their productivity and different
organization structure has different qualities and disadvantage as well. Every size of business
structure and different way of communication process. It has been clear that management
effective human resource in organization, owner has developed different sections, and they
mainly applied this approach of proper continuity in business process and their proper
management can provided effectiveness in firm productivity. Also, this study has been concluded
that proper and effective organizational culture beneficial for positive success and it developed
new opportunities as well.
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REFERENCES
Books and Journals
Awan, U., Nauman, S. and Sroufe, R., 2021. Exploring the effect of buyer engagement on green
product innovation: Empirical evidence from manufacturers. Business Strategy
and the Environment. 30(1). pp.463-477.
Boselie, P., Van Harten, J. and Veld, M., 2021. A human resource management review on public
management and public administration research: Stop right there… before we go any
further…. Public Management Review. 23(4). pp.483-500.
Di Stefano, G., Scrima, F. and Parry, E., 2019. The effect of organizational culture on deviant
behaviors in the workplace. The International Journal of Human Resource
Management. 30(17). pp.2482-2503.
Ipsen, C., and et.al., 2021. Six key advantages and disadvantages of working from home in
Europe during COVID-19. International Journal of Environmental Research and
Public Health. 18(4). p.1826.
Matkó, A. and Takács, T., 2017. Examination of the relationship between organizational culture
and performance. International Review of Applied Sciences and Engineering. 8(1). pp.99-
105.
Neu, D. A., Lahann, J. and Fettke, P., 2021. A systematic literature review on state-of-the-art
deep learning methods for process prediction. Artificial Intelligence Review. pp.1-
27.
Shahrajabian, M. H., Sun, W. and Cheng, Q., 2021. Product of natural evolution (SARS, MERS,
and SARS-CoV-2); deadly diseases, from SARS to SARS-CoV-2. Human
Vaccines & Immunotherapeutics. 17(1). pp.62-83.
Vashghani Farahani, F., Teymournejad, K. and Bamani Moghadam, M., 2021. Designing and
Explaining the Agility Model of the Organization in Tehran. Iranian Journal of
Educational Society. 14(1). pp.356-367.
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