Business Organization: Structure, Culture, and Industry Practices

This report provides a comprehensive overview of business organizations, detailing different types such as sole proprietorships, partnerships, and limited liability companies, along with their advantages and disadvantages. It compares and contrasts tall and flat organizational structures, highlighting the impact on management and employee autonomy. The report also examines key business functions like human resources, management, and operations, emphasizing their role in achieving business targets. Furthermore, it explores the significance of organizational culture and its positive influence on employee satisfaction and productivity. The study concludes by providing examples of industry practices that enhance organizational efficiency, such as rewarding effort, engaging workers, and seeking clarity. This document is available on Desklib, a platform offering a wealth of study resources for students.

Understanding Business
Organization

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK-1 Three advantages and disadvantages of the different types of business.......................3
TASK-2 Comparing and contrasting the tall and flat structure of an organization.....................4
TASK-3 Business function..........................................................................................................5
Task- 4 Organization culture and their positive influence...........................................................5
Task-5 Examples of industry practice..........................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business organization introduce the structure of the organization. How the structure of
the organization meet their goals and objective. Business design to enhance the activity of the
organization and their activity. This report includes the information about the types of business
organization such as sole proprietorship, partnership, limited company. Organizational structure
which determine the activity which uses in order to direct the task in the organization to achieve
their goals. Report also include the business function which enables the activity which divided
into division of the betterment of the organization to facilitate the core business function. In
Business organization, organization culture also plays a major role which defines the behaviour
and attitude of the employee and management of the organization by which the culture can be
identified. Culture of the organization also describe the beliefs and values established by the
leaders of top management of the organization.
MAIN BODY.
TASK-1 Three advantages and disadvantages of the different types of business
Sole proprietorship
Definition: Sole proprietorship is common structure of the business which is handle by only
person and control and authority in the business is fully on the individual. For example: Astrid
&Miyu a jewellalry shops which is found by the Connie Nam which they sale online.. Which is
held by the only person and manage accordingly (Dumford, and Miller, 2018).
Advantage:
 The first advantage defines that it is easy to establish the business. A business do not
have any particular enrolment to start or launch the business. In this kind of business, an
individual can operate the identity by only utilizing the PAN and Aadhar identification
sources.
 Business and owner are same in the sole proprietorship business as they do not have any
upper authority to make a decision.
 In the taxation cases, the firm is not registered with any governance authorities, and they
only have to file the income tax returns if thee organization has the income above 2.5
lakh per annum. The tax of the business deducted only one time when the owner of the
business person tax deducted.

Disadvantage
 It is the one of the most disturbing concept of sole proprietorship business. If the
organization had the loss, they are necessarily had to meet liabilities at any cost.
 They always met difficulty in germinating funds
 The business owner is personally liable towards any liability which occur in the business.
The tax which owner pay is from their personal net worth.
Partnership
Definition: Partnership includes the two or more person which operate the business and manage
by sharing even though their profits. Different type of partnership deeds such as the partners in
the business have equal liability and other type so partners have limited liability. For example:
Not On the high street these are founded by the Holly tucker and Sophie Cornish which is a
personalised gifts business (Keiningham, and et.al 2020).
Advantage
 Working as a partnership provide and obtain the better decision-making process.
 It will get easier to balance and manage the work load and can distribute the equal
responsibility and duties.
 Easy to start a partnership because the liability also divided among the partners. Even if
the partnership deeds agrees, the partnership will be in the existence if another partner's
dies.
Disadvantage
 In this business, they do not have any legal status. Therefore, there is risk for every
partner that they might lose their personal asset because of unlimited liability.
 With the combination of the partners it has to contribute the profit and benefit and limit
the access to capital.
 It also makes the potential for differences and conflict
Limited liability company
Definition: limited company (LLC) this indicates the incorporation of business where the
liability is of limited amount (Hughes, and et.al 2019). With the help of legal term it ensures that
liability of a stakeholder is limited. For example: Aall & Zyleman company a corporate service
based in Hong Kong.
Advantage

 In this the owners personal asset are safe because of the limited liability.
 The owner of the business can choose the method by which they will pay the taxes.
Mostly, LLC don't require the annual meeting (Villaluz, and Hechanova, 2018).
 Owners are not responsible for the business debts.
Disadvantage
 Accounting and legal terms are higher than the proprietorships.
 The limited liability company can be more expensive than normal one.
 Ownership is bitten difficult to transfer than with corporation activities.
TASK-2 Comparing and contrasting the tall and flat structure of an organization
Structure of the organization determine the structure which is fall under tall and flat
structure of the organization. Tall structure visualize what an individual or organization think to
level up the management of organization. Flat organization is structure varies among the
management, employee and have more autonomy (Turchin, and et.al 2018).
Flat organization structure: flat structure is an organizational structure which has a fewer
layers of management. The flat structure helps the organization in wide span and control to
coordinate with the employee. Flat organization also describe as the self managed organization
because the layer of the management in this organization are fewer. This structure are majorly
used by the small businesses. For example: Valve corporation who is game developer company
who uses the flat structure in the organization.
Tall organization structure: tall organization refers to the structure where there are several
layers in the organization structure for the management. Tall organization has large number of
managers, management team and variations that's why organization has to develop the tall
organization to manage the every division of the organization. For example; Mark and Spencer
company deals in the multiple variety of products such as clothing, home appliances etc (Lee,
2021).
TASK-3 Business function
Business function determine the activity of the organization and support the function of
organization which held in regard to promote the business. Business function carried out the raw
resource to final goods in the organization (Ramirez, 2018).
Human resource: Human resource function of the organization determine the ability of
organization in order to meet the business targets and needs which is essential in the business.

For example: Mark and Spencer clothing factor human resource main function is to recruit
qualified people and maintaining the safe environment in the organization. Maintain the relation
of the employee to employer, give compensation and rewards. Even though training and
development of the employee for better performance in the organization (Xie, Wang, and Meng,
2019).
Management: management function of the organization determine the planning, organizing,
staffing, controlling and budgeting. These elements help the organization to manage the activity,
task properly in order to gain the profitability (Andersson, and et.al 2018). For example: Tesco
the management of the diverse variety products and chain management in the organization to
successful reporting of the organization. Tesco plan their budgeting department to more enhance
because in the management function of the organization need a perfect budgeting allocation.
Operation: operation function in the business is the core elements to pursue the activity
perfectly and in manageable manner. Operation function is the substance of the entire
organization and it helps the organization in their marketing. For example: Unilever operation
function include the development, manufacturing of the goods and manage every function of the
organization in regard to gain the profit (Zerbino, Stefanini, and Aloini, 2021).
Task- 4 Organization culture and their positive influence
The organization culture is defined as behaviour of function of business that helps in
providing better environment for organization. It includes beliefs, values, understanding and
other key elements that helps in proper functioning of organization business (Shami and et.al,
2021). By providing better culture helps in raising organization productivity and efficiency in
desired manner. The positive influence of organization culture on business by raising employee
satisfaction and boost morale of workers by emphasizing better culture of environment. In
accordance to this, the better organization culture motivates employees to do more work with
more effective manner (Fernandes, 2018). By this employees being trustworthy towards
business and work with full enthusiasm as they are happy with the culture of organization. This
helps in raising organization productivity and efficiency by working in respective manner that
leads organization productivity. It helps in motivating employees by satisfying their needs and
desired that motivate them to do work more effectively. The organization culture plays key role
in function of management as better environment helps in satisfying employees and boost

organization performance in desired manner. It helps in organization productivity and efficiency
that helps in conducting systematic functioning of business.
Task-5 Examples of industry practice
The organization practices helps in performing business function effectively through
raising organization productivity and efficiency (Valkokari and et.al, 2021). By performing
organization practices helps in smooth functioning of organization by performing functions of
management effectively. In accordance to this, the examples of industry practices that occurred
in organization are;
Reward effort- The industry practices derives positive approach by rewarding effort of
employees makes them feel happy and recognized their value in business. It helps in raising
organization productivity and performance by systematic functioning of business.
Engage workers- The practices of business helps in engaging workers of organization as they
involved and engaged in workplace (Wang and et.al, 2021). In order to do work more
productively and effectively that helps in raising organization productivity. As they become
passionate towards work that boost organization performance as well as employee morale in
desired manner.
Seek clarity- It helps in deriving organization vision, aims, objectives and many other factors
that derives clarity of organization. As their main target and goals of business is to boost
organization profitability and productivity. This conducts smooth functioning of business as the
practices of organization performed in respective manner. The business performs their function
and operation by seeking of clarity in their role that helps in raising organization efficiency
(Cagle, Yılmaz, and Doğru, 2020).
CONCLUSION
The report is summarized of benefits and drawback of different types of organization that
has been described. It has been concluded organization structure that determines about
environment, function of management that has been held in business. Also, studies distinctive
function such as HRM, operation function etc. that influences function of organization and
management practices that has been occurred within business. Further, explain organization
culture and their positive impact on business that helps in developing organization productivity.
Lastly, has been provided different industry practices examples that examined and discussed in
the report.

REFERENCES
Books and Journals
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Keiningham, and et.al 2020. Customer experience driven business model innovation. Journal of
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Lee, S.R., 2021. The Myth of the Flat Start-up: Reconsidering the Organizational Structure of
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