Analyzing Business Organizations: Structure, Functions and Culture

This essay provides a comprehensive overview of business organizations, encompassing various types such as sole proprietorships, partnerships, and limited companies, along with their respective advantages and disadvantages. It further examines organizational structures, contrasting tall and flat hierarchies, and highlights the critical functions within a business, including production, operations, and human resource management, using the TUI Group as an example. The essay also emphasizes the significance of organizational culture and its impact on the success of an organization, illustrating how a positive culture can enhance employee satisfaction and engagement, ultimately leading to improved performance and competitive advantage in the tourism and hospitality industry.

Business organization

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organization refers to a group of people or an individual that work to achieve
commercial goal (Good and Thorpe, 2020). In another words business organization is a type of
organization which is governed by principles and laws governing contract and transaction of
good and services. Business organization play an important role in the production of growth,
stimulates creative thinking as well as fixing the responsibility (de Silva, 2020). In this essay
there is a discussion on advantages and disadvantages of the different types of business. After
that it summarize the flat structure of an organization with examples of hospitality and tourism
industry. In addition to that different business functions such as production, operations, human
resource management etc. The impact of business functions in the functional management
activities on organization or the people in the organisation. At last, this essay covers the
organizational culture as well as how its positive culture impacts on success of organization.
TASK
There are different types of business for example sole trader, partnership and limited
company. A sole trader is also known as sole proprietorship. It is a type of business which is run
by one person and who are self employed. They keep their all business profit to themselves and
the person is self responsible in case of any damage or loss in the business. For example, tour
guides that work on voluntary basis in UK. The advantages of sole traders includes Complete
control, Less paperwork and Financial benefit etc. In the business, the sole trader has complete
control on the business. The proprietor can make changes accordingly in the business and free to
make own decisions to run the business in effective manner. Another advantage of sole trader is
that it has less paperwork because the business of proprietor is not a isolated legal entity and
there is no need to do any statement or maintain registers. The third advantage of a sole trader,
there are no other owner of the entity (Cotei and Farhat, 2018). So there is no need to share to
profits to others. After paying tax and expenses the proprietor keep all the profit to self. The
three disadvantages of sole trader are that the sole trader is fully responsible and accountable for
everything that happens in the business. Sometimes there are crisis that occurs in a entity which
affects the business of a sole trader directly or indirectly. In case of selling the business, sole

trader might faces difficulties to hand over to the new owner. The sales are limited and it is quite
complicated to organize new transferral of assets. The sole trader is responsible for the losses in
business such as equipment cost, taxes etc. Partnership is a type of business which is owned by
two or more people. In partnerships each owners are responsible foe the taxes, liabilities and
assets of the entity (Manfreda and Štemberger, 2018). For example, UK's Premier Inn hotel make
bond with tour operators in order to provide accommodation. There are some advantages in
partnership business that in partnership, all partners are able to share the burden with each other.
Partnership business is helpful in the success of entity by sharing the experiences, skills and
knowledge with each other (Yatsechko, 2020). Two people are better than one, it is helpful in
better decision making for the firm. While the disadvantage is the partners are personally liable
in case of any losses and debts incurred. Another disadvantage of partnership business is that it
has a limited access to capital. As a partnership business the owners must have shared the profits
with each other. Limited company refers to the owners who are legally responsible only for
what they have invested to the company. For example, Brit British airways. There are
advantages of limited company which includes Professional status,Tax efficiency, Credibility
and trust. The limited company help in improve the professional status of the people who trade in
limited company. Currently in UK, limited companies offer great flexibility for tax planning.
While the main disadvantage is that limited companies must be incorporated at companies
house. If limited companies makes any type of changes in the business , they have to notify the
company house as soon as possible. Another disadvantage is that strict procedures necessary be
followed when withdrawing money from the enterprise.
A tall organizational structure is a type of structure that has many levels in hierarchical
form. In tall structure there is a possibility of promotion for the employees to the management
ranks. For example, TUI Group tourism industry may have vice presidents and managers of tour
operators, destination facilities as well as destination attractions. While the flat organizational
structure has limited number of levels of hierarchy of middle management between the
enforcement and staff. For example, a hospitality company in UK has flat organizational
structure they have to maintain little hierarchy. Its goal is to maintain very few hierarchy
(Fallahpour, et.al., 2021). In this organization all the individuals have directly report to the
manger. The major difference between a tall and flat organizational structure is that the manager
in flat organization have more responsibility than a manager in a tall organization because there

is a greater number of individuals who are relying on guidance, help and direction. Beside this
managers in a flat organization are less dependent on help or support from seniors because
seniors are limited in the flat organization.
Human resources management is the backbone of any organization. They manage the
overall organization by hiring the suitable candidates that will make a positive impact in the
success of an organization (Pelit and Katircioglu, 2021). HRM implement the work related
practices which leads to make their process smoothly such as training, payroll, hiring as well as
performance appraisals. For example the TUI group's HRM offering the employees appraisals to
retain in the company. The HRM reward those employees who support the policies and perform
better in the organization in order to achieve success and goals. It also encourages the positive
behaviour of employees and encourage them. Production is a type of business function that
refers to the process of production of goods and products from raw material or by components.
For example, TUI Group of UK provides the best quality of tourism and hospitality services as
well as products to their customers. It will attracts the customers towards the hospitality industry
and maximize their profits. Operations is the process of managing the internal work of an
organization so that organization runs effectively. Operations includes the products making,
making of products, provide services and sell services it is mainly important in every businesses
to manage the design and management procedure that apply behind the work. The operations
helps in improve productivity and efficiency. For example, TUI Group demands strong
operations management to delight guests, deliver financial returns or develop employees. They
use effective operation system into their management which retains their guests, customers and
visitors.
Organizational culture defines the decent way to behave within the organization. It is
collection of practices, values, objectives and expectations that guide all employees in the
organization (Driskill, 2018). Organizational culture helps in improve the productivity of overall
organization. For example, TUI Group has strong cultures experiences which helps in increasing
their revenue growth and the success of the group. Their strong and healthy culture set up a
favourable working environment in the tourism and hospitality industry of TUI Group. They
provides their employees higher job satisfaction and employee engagement. They appreciate
their workers and employees work and efforts which makes them satisfied. The satisfied
engaged employees feel motivated and appreciated by the TUI Group and more invested in

work. Their hard work and the positive organizational culture of TUI Group leads the
organization towards success. The TUI Group also take care of their customer's need and
preference towards their services and products and makes changes accordingly. Many customers
have found TUI Group helps to enhance their experience by providing the services as per the
preferences. These activity helps this tourism and hospitality industry to increase their
competitive advantage and success of the organization.
CONCLUSION
From the above essay, it has been concluded that business organization is a group of
people or an individual that work to achieve commercial goal. It is a structure of a business that
determines how the instruction and information flows from one department to another. There are
different types of business for example sole trader, partnership and limited company. A sole
trader is also known as sole proprietorship. It is a type of business which is run by one person
and who are self employed while the partnership is a type of business which is owned by two or
more people. In partnerships each owners are responsible foe the taxes, liabilities and assets of
the entity. Limited company refers to the owners who are legally responsible only for what they
have invested to the company. Then this essay evaluates the organizational structure as well the
organizational culture and their positive culture impact on the organization.

REFERENCES
Books and Journals
Cotei, C. and Farhat, J., 2018. The M&A exit outcomes of new, young firms. Small Business
Economics, 50(3), pp.545-567.
de Silva, C., 2020. Business organizations. In Galbraith’s Construction and Land Management
Law for Students (pp. 65-76). Routledge.
Driskill, G.W., 2018. Organizational culture in action: A cultural analysis workbook. Routledge.
Fallahpour, A., Yazdani, M., Mohammed, A. and Wong, K.Y., 2021. Green sourcing in the era
of industry 4.0: Towards green and digitalized competitive advantages. Industrial
Management & Data Systems.
Good, J. and Thorpe, A., 2020. The nature of organizing: A relational approach to understanding
business sustainability. Organization & environment, 33(3), pp.359-383.
Manfreda, A. and Štemberger, M.I., 2018. Establishing a partnership between top and IT
managers: A necessity in an era of digital transformation. Information Technology &
People.
Pelit, E. and Katircioglu, E., 2021. Human resource management studies in hospitality and
tourism domain: a bibliometric analysis. International Journal of Contemporary
Hospitality Management.
Yatsechko, S.S., 2020. Building an institutional model of interaction between government and
business in public-private partnership. In Growth Poles of the Global Economy:
Emergence, Changes and Future Perspectives (pp. 709-716). Springer, Cham.