Comprehensive Report: Business Organizations, Structures, and Impact

This report provides a comprehensive overview of various business organizations, including sole proprietorships, partnerships, and limited companies, detailing their characteristics, advantages, and disadvantages. It compares and contrasts flat and tall organizational structures, analyzing their communication dynamics and decision-making processes. The report further examines the impact of functional management activities, specifically human resource management, marketing, and production, on organizational success. Additionally, it explores the crucial role of positive organizational culture in fostering employee motivation and enhancing overall business performance. The report concludes by emphasizing the significance of understanding these elements for effective business operations and sustainable growth, supported by relevant references.

Understanding
Business
Organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Different types of businesses:.....................................................................................................3
Compare and contrast organisational structure:..........................................................................4
Impact of functional management activities on the organisation:..............................................5
How positive culture can impact the success of the organisation:..............................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
A business organization can be referred as an entity focused on various kinds of industry,
professionals, and commercial actions with the goal of gaining higher profit (Geissdoerfer and et.
al., 2020). There are various types of business structure, such as company, partnerships, and sole
proprietors, each with its own strengths and weaknesses. The following essays describe several
forms of corporate organizations and their strengths and weaknesses. This essay, also focuses on
the comparison among the tall and flat organizational structures, as well as the various
departments of the company. This essay also discusses about the culture of the firm and its
influence on organizational success.
TASK
Different types of businesses:
The sole proprietorship structure is being considered as the most common as well as
easiest way to run a company. In this type, there is only single owner and is very cheap
compared to other types of businesses, so it means that it is easy to established. Company owners
enjoy the entire profits they generate and do not have to share them. In addition, the proprietor is
responsible for paying the debts (Henley, Vorley and Gherhes, 2021). The biggest benefit which
is associated with this It is easy to set up and requires little investment. The owner is only
responsible for taking the decision and developing the strategies for the company growth.
Moreover, to this, the biggest disadvantage with this structure is that business owner possess
unlimited liability with limited income. Novus Accountancy Ltd is an example of sole trader.
Partnerships are the other kind of business enterprises that consists more than two people as
company owners. A partnership business structure can be defined as an agreement among more
than two people who oversee the various processes of a firm and enjoy the profits and liabilities
in the decided proportions (Hoekstra and et. al., 2020). The positive thing of a partnership
business structure is that each partner is supported financially, physically and emotionally to
keep the organization running smoothly, but the biggest drawback is unlimited liability.
Individuals of the partnership firm are only accountable for the payment of debts. An example of
a partnership company is Social Chain Group Limited. In addition, a limited company is also a
form of company structure in which there is separate legal entity. This means that company
owner’s is completely separated from the company (JENKINSON, 2020). The organization's

finances are distinct from the owner's personal finances. This is a common structure of legal
entity that bounds the liability of the shareholders of the firm. The main advantage which is
associated with this is that while this is a tax-effective model and disadvantage is that owners
may face to establish a limited kind of complexity.
Compare and contrast organisational structure:
Flat Organisational Structure is one in which there is little or no level among managers and
employees. In this structure, the mostly trained staff members are included in the decision-
making procedure. Workers of the firm are not monitored by numerous management levels. The
flat organizational structure is also called the horizontal structure. This structure usually applies
on small parts of a large firm. Among the employees and managers of the firm communication is
done in regular manner, enabling quick changes and problem resolution. All employee feedback
will be considered. For example, like Hyatt Hotels Corporation have short chain of command, so
this structure is followed by them. A flat organizational structure is essentially a hierarchical
organisational structure which can expressed in a shape of pyramid. However, the foundation of
pyramid is considered broader and there are several layers among the company management and
employees. The structure of chain of command in this is short, but the control span is large.
President or chief executive officer is the foremost place in this structure after this the middle
line manager and the employees.
A tall organizational structure comprises off numerous levels of management and monitoring.
In this the command chain is extensive. Workers of the firm are only connected to their
department head only. All managers along with the employees are overseen by the superiors.
Due to the many levels included in this structure, this leads to bad communication which result
in taking long time to make decisions. The top-level executives of management are usually
referred to as the Chief Executive Officer. For example, like British Airways follow the tall
organizational structure. A Tall organizational structure is having many levels but often do not
span more than eight management level. This structure, has long chain of command, but the span
is narrower as compared to flat structure. Top-level managers have the high power, and as a
result, workforce is better managed.

Impact of functional management activities on the organisation:
Human resource management plays a very important role in the success of the
company that is the reason that this is the most crucial activity of the firm. The employees of this
division are responsible for selection the employees and solve the problems which are arises
among the employees while working within the workplace (Fuertes and et. al.,2020). They also
develop the training sessions for them which result in developing different types of skills within
them. Their main function is to recruit the talented employees and motivate them on regular basis
so that their level of job satisfaction along with the engagement has been enhanced. This result in
that they work with full productivity and attain all the company goals effectively. For example,
different types of approaches are developed by the HR team of the Intercontinental hotel for
motivating the employees and developing positive working environment within the workplace.
This result in increasing the employee’s retention rate.
The responsibility of promoting the goods and services of the company is on the shoulder of the
marketing department. The effective functioning of the marketing function is very crucial form
the company point of view because sustainability of the firm is in the hand of this department.
Different types of strategies are developed by the marketing department of the company in order
to promote the goods in the market, developing effective bond with the customers and spread
good image of the company products (Amrutha and Geetha, 2020). For example, like various
strategies are developed by the marketing team of Bakers group for increasing the potential base
of customers.
Production function refers to the producing of goods from raw materials and then convert them
into finished products. This is important for the organization as it helps them in delivering these
final products to the customers in return for money or something of same value. Therefore,
effective manufacturing can help companies maximize all resources to improve production,
reducing costs and increasing profits. For example, Unilever Plc employs a variety of effective
manufacturing approaches that help eliminate waste within the organization, ultimately leading
to increased profits for the company.
How positive culture can impact the success of the organisation:
Organizational culture is basically a mixture of performance, expectations, and values that
guide the various business functions that can affect an organization's failure and growth. The

influence of organizational culture is very important in many areas, including hospitality. Culture
is being considered as the most important element that is valued has been maintained in respect
to the goal, vision, mission, and values carried out by the various members of the company
(Schönborn and et. al.,2019). For example, like effective as well as positive organizational
culture is developed by the Hilton Hotel group which result in positive behaviour of the company
workers towards the visitors.
It also assists in the effective communication of the important information different people
within the organization in a very effective manner. The culture is basically a set of morals,
principles and actions that lived in the company. This is link to elements that are estimated in
certain campaigns which must the company may carry out. It also affects business failure and
success. Therefore, positive organisational culture is required by organization in order to become
best in hospitality sector by faith (Srihandayani and Kusnendi, 2020). In positive organizational
culture, each member of an organization focuses on achieving their goals along with the
company goal to enhance performance.
CONCLUSION
It is being concluded that there are various forms of business structure like sole
proprietorship,, partnership, company and many more. All these types of structure has its own
tax structure, liability, pros and cons. This report also concluded about the tall and flat
organisation structures with its characteristics and with proper example. These organisational
structures helps in delegating the role and responsibilities to each employees of the firm. This
report also concluded that it is very important for the company management to developed
positive culture within the workplace. This not only motive the employees but also improves
their way of carry out the task.

REFERENCES
Books and Journals
Geissdoerfer, M and et. al., 2020. Circular business models: A review. Journal of Cleaner
Production, 277, p.123741.
Henley, A., Vorley, T. and Gherhes, C., 2021. Implications and impacts of the crisis on micro
businesses and their future. In Productivity and the Pandemic. Edward Elgar Publishing.
Hoekstra, F and et. al., 2020. A review of reviews on principles, strategies, outcomes and
impacts of research partnerships approaches: a first step in synthesising the research
partnership literature. Health Research Policy and Systems, 18(1), pp.1-23.
JENKINSON, M.W., 2020. The audit of a public limited company. The Evolution of Audit
Thought and Practice, 18.
Fuertes, G and et. al.,2020. Conceptual framework for the strategic management: a literature
review—descriptive. Journal of Engineering, 2020.
Amrutha, V.N. and Geetha, S.N., 2020. A systematic review on green human resource
management: Implications for social sustainability. Journal of Cleaner Production, 247,
p.119131.
Schönborn, G and et. al.,2019. Why social sustainability counts: The impact of corporate social
sustainability culture on financial success. Sustainable Production and
Consumption, 17, pp.1-10.
Srihandayani, U. and Kusnendi, K., 2020, February. Effect of talent management and
organizational culture on the performance of employees (Study on employee Brantas
Abipraya Company, Jakarta). In 3rd Global Conference On Business, Management, and
Entrepreneurship (GCBME 2018) (pp. 233-235). Atlantis Press.