Business Organisation: Structure, Functions & Culture Impact

This report provides a comprehensive analysis of business organisations, exploring various types such as sole proprietorships, partnerships, and public limited companies, highlighting their respective advantages and disadvantages. It delves into organisational structures, comparing tall and flat structures and their implications, particularly within the tourism and hospitality sectors. The report also examines key business functions, including Human Resource Management, production, and marketing, and their influence on management activities. Furthermore, it emphasizes the critical role of organisational culture, illustrating how a positive culture can significantly contribute to an organisation's success, with specific examples from the tourism and hospitality industry, ultimately concluding that a well-chosen business type, structure, and culture, coupled with effective human resource management, are vital for organisational success.

Understanding
Business Organisation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
A business is a entity, firm and organisation that are engaged in commercial, industrial
and professional activities. Businesses can be profit and non profit based organisation depends
on purpose of the organisation. There are different types of business organisation such as sole
proprietor, partnership and limited companies brief discussion about how advantages and
disadvantages of the business can affect the company. (Mayer, 2018)There are different
organisation structures that help business for there smooth operation such as tall and flat
structures, with comparison and contrast of both in reference to industry. In addition to this there
is a discussion about different types of business function and their impact on management
activities on organisation, functions such as, human resource management, production and
operations. At last brief about organisational culture and how positive culture impact on success
of organisation. In addition to these a reference to the tourism and hospitality industry.
MAIN BODY
A business is a separate entity engaged in industrial, commercial and professional activity
either for earning profit or as a non-profit organisation. It is of different types such as sole
proprietorship, partnership and public limited company. A sole proprietor business is wholly
controlled by one person, the pros of this type of business firm are it is easy to establish as it
require less paperwork to start a sole proprietor firm and low start-up cost as compared to other
form of business. (Calabrese, Cowling and Liu, 2022) The cons of sole proprietorship are
unlimited liability, as a single person is responsible for the debts of the firm and it is difficult to
raise fund because everybody wants to invest in a company because they have strong financial
records. One of the example in context to tourism is A to Z Minicabs.
Partnership business is a business where two or more people come together to earn
profits. (Chión, Charles, and Morales, 2019) The advantage of this type of business are, partners
can be combined expertise and distributed work load as there is involvement of more than one
person who are experts in their own field due to which the work is divided and the disadvantages
of business are, that the involvement of more than one person also leads to some disagreements
at some situations. One of the example with reference to hospitality is ZUMA.
A Public limited company is an organisation which is registered under companies act,
2013 and formed by minimum 7 members with a minimum paid-up capital. Some advantages of
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entering into this type of business that owners are not responsible for debt, shareholders are
not responsible for the debts they risk their equity and easy funding, shareholders can sell the
shares during fund requirement. (Feddersen, 2020)Some disadvantages of this business are
record keeping is must because of regular audits of accounts and managers are more involved
in operation more than the owners, as because planning is the task of owners and planning
according to the set goal all the execution is in the hands of managers. One example of public
company in context to tourism industry is EASE.
Organisational structure is a outline of an organisation which directs certain activities to
achieve organisational goal. (Rodgers, Anthony and Cudney, 2021) The structure is of two type
Tall and flat organisational structure. Tall organisational structure is complex in nature and
followed in large scale organisations. It is an efficient structure as few subordinates are reporting
to each assigned senior which provide great supervision, for instance the organisational structure
followed by Dorchester Hotel. (Su, Chen, Wang, 2019) Whereas, Flat organisational
structure, this organisational structure have fewer levels and follows short change of command
as compared to tall organisational structure, for instance the organisational structure followed by
Premier Inn.
The key differences between tall and flat organisational structure is that tall structure
follows long hierarchy chain and narrow span of control whereas flat structure follows short
hierarchy chain and wide span of control. (Gorchakov and Taratuhina, 2019) The disadvantage
of tall structure is that it is more time taking as there are many levels of superiors to consider on
the other hand decision making speed of flat organisation is high as there is wide span of control.
In employees point of view tall structure is beneficial for them as there is large scope of
promotion. The tall organisational structure is expensive as there are a lot of layers whereas flat
structure is quite inexpensive.
Both the structure have their own merits and demerits, but maintaining average number
of layers will help organisation to get the benefits of both tall and flat organisational structure.
The choice of the structure depends on many factors like nature of business, customers and type
of product offering.
A business functions refers various activities carried out by firms, they are generally
divided into core functions and support functions. There are different stages of business
functions such as, Human Resource Management department is responsible managing people, it
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is a personnel of the organisation, there work is to find and recruit right person for work and keep
employees highly motivated at workplace and taking care of employees who leave the
workplace. (AlNaaji and Qusef, 2021, July) HR is handle main function of organisation such as
recruiting and on-boarding, manages performance of employees and helps maintaining and
building business culture. (Wut, Xu and Wong, 2021) In context of tourism and hospitality
industry HR management focus on managing manpower, planning, hiring of employees, etc.,
includes in personnel management. Which impact on industry to operate smoothly and keep
motivating the employees working in organisation.
Production department is in charge of converting raw material into finished goods ready
for sale and delivery to customers. Production director manages entire production process in
organisation. Production and operation is same thing in company, as operations is in charge of
providing services to customers. (Heikkilä, Kaipia and Ojala, 2018) In reference to tourism and
hospitality industry operations department helps providing services to customers on time and
according to the needs, put positive impact on organisation and employees working in company
as it provide system to operate properly.
Marketing department identify needs and demands of customers in market, as it ensure of
selling products and services to customers in market with the help of traditional market mix.
Duty of Marketing manger is to identify needs of customers with different strategies of price of
product by promoting and increase awareness of services in market to customers at last ensuring
a right market to provide products and services to customers.(Stone, Cox and Gavin, 2020) In
reference to tourism industry, marketing is main factor that ensure the awareness of the company
to customers and benefits growth of industry.
Organisational Culture describe values, goals overall vibe of organisation, it includes
organisation's expectations, experience and values that provide guidelines to employees of the
company. Culture of organisation is based on attitudes, beliefs, customs, written and unwritten
rules with employee behaviour, self image, inner working, interaction with outside world and
future expectation have been developed over time and considered them valid in company.
Organisation culture defines the way people interact with each other, clients and stakeholders,
etc., it has a guidelines for behaviour in organisation for various situations.(Erthal and Marques,
2018) It influence behaviours for employees in workplace, and also behaviours that characterized
and contribute unique social and emotional work environment in company. Cultural is a set of
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basic understanding shared by employees and influence decision making that shared to new
employee of organisation. Its affect in a way that led to hugely influential success in
organisation. In context of tourism and hospitality industry is that, the hospitality industry have a
quality culture that guide belief at bottom line performance by employees of organisation. It
create an environment for establishing and maintaining good quality culture for long term
survivors. Industry is committed to practice and managing quality, this importance on
understanding customers wants and delivering it against minimizing and eliminating hassles,
problems and deficiencies in company. (Liu, Tsui and Kianto, 2021) A positive cultural any
organisation led to increase in production, operation and employees in workplace. In tourism
and hospitality industry a good organisation culture is important as all the main work is depend
on good culture and with it will help the industry success, because the employees are happy and
have good culture and providing with good attitude and behaviour to customers led to the success
of organisation growth and benefits.
CONCLUSION
From the above discussion it is concluded that all the three types of business had their
own advantages and disadvantages which is also depends upon the choice of industry. It is also
analysed that choosing a right type of business was not enough, after that right type of
organisational structure is choose which helped in framing the outline of the organisation.
(Frisendal, 2018) To fill the set posts right type of human resource is hired which had a major
impact on the functional activities of the business. The employment of human resource came up
with many factors like it set the organisational culture through which impacts of positive and
negative culture was analysed. The whole discussion focused tourism and hospitality industry.
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REFERENCES
Books and Journals
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Calabrese, R., Cowling, M. and Liu, W., 2022. Understanding the dynamics of UK Covid‐19
SME financing. British Journal of Management, 33(2), pp.657-677.
Chión, S.J., Charles, V. and Morales, J., 2019. The impact of organisational culture,
organisational structure and technological infrastructure on process improvement
through knowledge sharing. Business Process Management Journal.
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.
Feddersen, 2020Feddersen, N., 2020. Examining Organisational Culture Change in a UK Talent
Development Programme (Doctoral dissertation, Liverpool John Moores University).
Frisendal, T., 2018. Business Meaning. In Visual Design of GraphQL Data (pp. 27-34). Apress,
(Su, Chen, Wang, 2019) Berkeley, CA.
Gorchakov, Y. and Taratuhina, Y., 2019, December. The Meaning of Context as an Important
Element of Business Process Management. In International Conference on Business
Intelligence & Modelling (pp. 175-180). Springer, Cham.
Heikkilä, J., Kaipia, R. and Ojala, M., 2018. Purchasing category management: providing
integration between purchasing and other business functions. International Journal of
Procurement Management, 11(5), pp.533-550.
Liu, G., Tsui, E. and Kianto, A., 2021. Knowledge-friendly organisational culture and
performance: A meta-analysis. Journal of Business Research, 134, pp.738-753.
Mayer, C., 2018. Prosperity: Better business makes the greater good. Oxford University Press.
Rodgers, B., Anthony, J. and Cudney, E.A., 2021. A critical evaluation of organizational
readiness for continuous improvement within a UK public utility company. Public
Money & Management, pp.1-9.
Stone, R.J., Cox, A. and Gavin, M., 2020. Human resource management. John Wiley & Sons.
Su, Z., Chen, J. and Wang, D., 2019. Organisational structure and managerial innovation: the
mediating effect of cross-functional integration. Technology Analysis & Strategic
Management, 31(3), pp.253-265.
Wut, T.M., Xu, J.B. and Wong, S.M., 2021. Crisis management research (1985–2020) in the
hospitality and tourism industry: A review and research agenda. Tourism
Management, 85, p.104307.
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