MGBBT0UBN: An Essay on Understanding Business Organizations

This essay provides a comprehensive understanding of business organizations, exploring their types, functions, advantages, and disadvantages. It delves into various organizational structures like sole proprietorships, partnerships, corporations, and limited liability partnerships, highlighting the differences between tall and flat organizational structures. The essay further discusses the roles of human resource management, operations, and production departments, emphasizing their functions within an organization. Additionally, it examines the concept of organizational culture, its impact on business success, and how to foster a positive and effective work environment. The essay concludes by reiterating the importance of a well-rounded approach to business organization, encompassing planning, organizing, staffing, and controlling to achieve overall success.

Understanding business
organization

Table of Contents
Introduction.................................................................................................................................................3
Task..............................................................................................................................................................3
Demonstrate sound knowledge and understanding of a variety of business types and their functions
and Appreciate the impact of functional management activities on organizations and the people
within those organizations.......................................................................................................................3
Conclusion...................................................................................................................................................6
References...................................................................................................................................................6

Introduction
Business organization is defined as an entity that is formed for the purpose of conducting
activities such as purchase, sale and manufacturing to generate profit and for the growth. The
formation of the business organization is take place by taking risk and making an investment in
their particular activity. There are four type of business organization(Rizu., Revin. and Meister,
2021). The aim of this report is to highlight what is business organization and discuss its
advantages and disadvantages with the type of business organization with the structure of
business organization. This report will also discuss the functions of human resource management
and the impact of functional management with the organization culture.
Task
Demonstrate sound knowledge and understanding of a variety of business types and
their functions and Appreciate the impact of functional management activities on
organizations and the people within those organizations
Business organization is refers to the entity that is formed by taking risk ant to generate
profit for the survival in order to run commercial services. There are many advantages and
disadvantages of the business such as advantages includes its is easy to establish the business
organization, easier to access capital, provide complete control and flexible, provides various
growth opportunities and proves favorable in generating success. And its disadvantage includes
huge amount of risk, need investment to regulate activities, takes time to generate profits, more
chances of losses and harder to assign duties and establish hierarchy. There are many types of
business organization which includes sole proprietorship which is defines as type of business
where there is only single owner and the single owner regulate all the activities of the business
(Liu, Tsui and Kianto, 2021). Partnership which defines as business which has more than one
owner and come into action by agreement among the investors , there are two types of
partnership which is general and limited. Corporation which is defined as companies that are
formed for the the purposes of the tax band have separate entity and consider as the legal person .
The income of this business type divided among the shareholder as dividends and profits.

Limited liability partnership which is defines as business that have many owners and their
liability depends upon on the investment and the each partner is not liable for the negligence and
the wrong doing of any other member in the business. And the last type of business is
cooperative business which is defined as the business that is operated for the benefit of the those
people who uses the services of the business and the earnings of the business is distributed
among the its members.
Tall business organization is defined as the companies which are large and more
complex in the structure and it contains several layers of management . It generally have vertical
structure and many employees are working under each manager with great supervision. Whereas
flat structure defined as the business that have small or fewer levels and have short working
chain. In the flat structure they empower more organization and assign them responsibility and
authority to work. In this employees are encouraged to work in teams and to solve problems
(Zaid, Jaaron and Bon, 2018). There many differences between tall and flat stricture
organization such as tall structure has many levels of hierarchy whereas flat level have only
limited no. of levels. Tall structure organization have a narrow span of control over the
employees whereas flat structure of organization have wide span of control. Tall structure
organization takes more time in decision making whereas flat structure takes decision with the
speed due to wide span of control. Tall structure of organization needs cost to manage the
organization whereas compared to that flat structure needs low costs. There are many
opportunities for promotion in tall structure whereas flat structure of the organization have
limited opportunities for the promotion. In the context of hospitality industry they have tall
organization structure and the duties and responsibilities are defined by the different departments
. They carry out their daily operations under the respective departments and the also delegate
authority within their each departments (Emeagwa. and Ogbonmwa., 2018). In the top the of the
organization is the CEO and the low level are for the employees. In concern with the tourism
industry they also works in the tall structure of the organization as in the top level consist
managers and in the junior level it consist assistants (Belmehdi, Harti, and Wady, 2018). In
tourism industry there are also different department to ensure effective working.
Human resource management is the framework in the organization which handles
different activates in the business related to human resource in the organization and the perform

many function in the organization such as recruitment and hiring of humans in the organization,
training and development of the employees, maintains healthy working environment in the
organization, handles all the actions related to disciplinary, manages all the activates that are
related to the benefit of the employees , works on the relation between employee to employee
and between employee and management and builds the environment in the organization that
provides safe working. The operations department is defined as the department which monitors
all the activities of business operation (Osipov, 2020) . Their function includes planning for the
organization working, implementation of the plans in order to generate effective working in the
organization and supervising the activities which is relates to goods and services . Their main
functions include operational planning, planning and providing finance, product design,
controlling the quality of the product and services, forecasting of opportunities and threats ,
making strategy for the future and maintain the effective supply chain for the smooth running of
the organization. Production department plays an very important role in the organization as it
refers to the process of managing activities to generate desired output from the products and
services (Venkatakrishnan, Chiu and Wang, 2019) . In involves planning, executing and
directing operations that transform raw materials into finish goods and services. It is considered
with the generating resources for the inputs , raw material and labor (Jermsittiparsert, 2020). The
whole process is works between these two frameworks which is raw material to finish goods.
Their functions includes selection of product, production planning controls and machine
maintenance and replacement in the organization.
Organization cultures is defined as the group of values, expectations and practices that
provide guidance and inform about the internal actions of all the members of the organizations.
A good culture is refers to what organization is believes and stand for the right values in terms
of employees of the organization. Employees are the base of any organization , they act as the
base for business, so by providing healthy working environment, providing recognition for their
working, aware them about their rights and provide them opportunity for the growth of them as
well as for the organization is with the development of the whole organization is said to be good
organization culture(Lee, 2020) . It also said to be proper way of behavior within the company
and this culture is establish by leaders. Organization culture plays a very important role in the
success of the business. The best hospitality culture is defined as the culture that guides by the
set of belief and each and every person in the organization is committed to the practice that work

for the quality (Hatammimi, Adnyani. and Kinasih, 2022). A well defined culture is the base for
success in every organization and it made various impact on the success of any business such as
it increased employee engagement in the organization, helps in decreasing the turnover of the
employees , enhances the productivity, creates a strong base for the brands and maintained its
identity, provides top opportunities and the top opportunities gives top performers, helps in
building power for the organization and creates healthy working environment which in overall
build effective team for the organization(Mohammed, Ngeno and Lagat, 2019) . The culture of
the organization can be build by well establish communication, listening of the ideas and the
concerns of the employees , by the generation of the feedback from the employees and work in
the way of solving them and by be consistent towards the performance of the company.
Conclusion
From the above report it is concluded that a business organization is the entity that is
formed by investing money, efforts and ideas but it does not only include buying selling of the
goods and services and consist the whole world which includes planning, organsing, staffing,
controlling and many more. This report consist the benefits and limitations of the business
organization and types of organization which are sole proprietorship, partnership, limited
liability partnership, cooperatives. It also includes the role human resource management,
operations and the production with the functions. And the definition and impacts of the culture
of the organization.
References
Belmehdi, A., Harti, K.E. and Wady, W.E., 2018. Ankyloglossia as an oral functional problem
and its surgical management. Dental and Medical Problems, 55(2), pp.213-216.
Emeagwal, L. and Ogbonmwan, K.O., 2018. Mapping the perceived role of strategic human
resource management practices in sustainable competitive advantage. Academy of Strategic
Management Journal, 17(2), pp.1-19.
Hatammimi, J., Adnyani, P.I. and Kinasih, Y., 2022. Examining the Business Organization of
Creative Industry in an Emerging Market. Asia Proceedings of Social Sciences, 9(1), pp.127-
128.

Jermsittiparsert, K., 2020. Leadership and industry 4.0 as a tool to enhance organization
performance: Direct and indirect role of job satisfaction, competitive advantage and business
sustainability. In Agile Business Leadership Methods for Industry 4.0. Emerald Publishing
Limited.
Lee, J., 2020. Accelerate Culture Change Through Digital Tools. In Accelerating Organisation
Culture Change. Emerald Publishing Limited.
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.
Mohammed, Z.C., Ngeno, V. and Lagat, C., 2019. Environmentally Sustainable Supply Chain
Practices, Organisation Culture on Firm Performance. A Mediation Approach. International
Journal of Emerging Trends in Social Sciences, 6(2), pp.34-45.
Osipov, V., 2020. Digital state: Creation through project-functional structure of public
administration. In Post-industrial society (pp. 53-62). Palgrave Macmillan, Cham.
Rizun, N., Revina, A. and Meister, V.G., 2021. Analyzing content of tasks in Business Process
Management. Blending task execution and organization perspectives. Computers in
Industry, 130, p.103463.
Venkatakrishnan, K., Chiu, H.F. and Wang, C.K., 2019. Popular functional foods and herbs for
the management of type-2-diabetes mellitus: A comprehensive review with special reference to
clinical trials and its proposed mechanism. Journal of Functional Foods, 57, pp.425-438.
Zaid, A.A., Jaaron, A.A. and Bon, A.T., 2018. The impact of green human resource management
and green supply chain management practices on sustainable performance: An empirical
study. Journal of cleaner production, 204, pp.965-979.