MGBBT0UBN - Analysis of Business Organisations: Functions & Culture

This report provides a comprehensive overview of business organizations, examining different types such as sole proprietorships, limited companies, and cooperative companies, and their respective advantages and disadvantages. It analyzes tall and flat organizational structures, comparing their decision-making speed, management costs, and promotion opportunities. The report also explores various business functions, including the relationship between human resource management and production, and production versus operations. Furthermore, it discusses the positive impact of functional management activities on organizations and their employees, highlighting how these activities drive growth and development. The report concludes by emphasizing the significant role of organizational culture in shaping employee behavior, fostering job satisfaction, increasing productivity, and ultimately contributing to the success of the organization. Desklib provides access to similar reports and study tools for students.

MGBBT0UBN
Understanding Business
Organisations

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Discuss the different kinds of business and their functions .......................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business organisation refers to an entity which has been formed for the purpose of
carrying on the commercial enterprise. It is that kind of corporation which is basically the group
of people or company which has been authorised by the state to act as a single entity and also
recognised as law for certain purposes. In the present report, three business organisations is taken
into consideration(Alexander and et.al., 2020). The present report will cover discussion about the
types of business organisations and also about its advantages and disadvantages as well. In
addition to this, the report will cover analysis about the tall and flat structure of an organisation
and also about the different business functions. Moreover, the report will cover discussion about
the impact of activities of functional management on organisations and the people within the
organisations. The report also consist of organisational culture and how positive culture impacts
the organisational structure.
MAIN BODY
Discuss the different kinds of business and their functions
There are different kinds of business organisation which are very important into this
business world and they have their own significance on their own level.
 Sole Proprietorship: It refers to someone who owns the business of unincorporated
nature by himself or herself. It is that kind of enterprise which has been owned and run by
one person and also there is no distinction into legal terms between the business entity
and owner as well(Cartwright and et.al., 2021). . For example, Ad share is an agency
which is based in the UK that supports charities and small businesses which navigates
their way in the place of digital market.
Advantages: Sole Proprietorship are easy to form and also has the individual authority as well.
The decision making process is totally based on the individual basis and also gains total profits
of the business.
Disadvantages: Under Sole Proprietorship, they have the unlimited liability for debts and also
has the capability to raise capital into limited terms. Th individual is responsible for the daily
basis business decisions.
 Limited Company: It is a general form of incorporation which limits the amount of
liability which has been undertaken by the shareholders of a company. For example, Nike

is basically the privately owned limited company which is known for the world's athletic
apparel company and known for its equipments, footwear.
Advantages : These type of companies have lower set up costs and can easily transfer the
business to someone else with a kind of better reputation.
Disadvantages: It has the long and complex registration process with compliance formalities. It
has also the division of ownership and also has the personal liability as well.
 Cooperative companies: These are the businesses which has been owned by the member
owners and are basically controlled by the member owners(Hummels and Nullens.,
2022). For example, ARLA foods which is basically a Danish-Swedish multinational
cooperative which is based in Viby, Denmark and also the largest producer of dairy
products. It has the largest dairy in the United Kingdom.
Advantages: Within these kind of companies, they have lower debt risk and also have more
control over the organisation. They have equal voting rights for the members.
Disadvantages: It has the limited resources and also have incapable management as well. It has
also the limited consideration and also have higher interest rates as well.
Within the business world, thee are different kinds of organisations who follows different kinds
of structure which help the organisation to execute their functions into effective terms.
Tall structure of an organisation: Within this kind of structure, they have many layers of
management and also has many leaders as well. Businesses who have this kind of structure
generally uses the top-down approach with a long chain of command. For example, Marriott
International Inc hotel has used this kind of structure for the organisation.
Flat structure of an organisation: Within this kind of structure they have fewer levels of
middle management between the executives and and the frontline employees.
From the comparison point of view, tall structure has the organisational structure which has
many levels of hierarchy whereas flat structure organisations have limited number levels of
hierarchy(Metallo and et.al., 2018). Within the tall structure, it has narrow span of control where
it has the span of control into wider manner. Within the tall structure of organisations, they have
more time to make decisions as there are many levels of personnel to consider whereas speed of
decision making is very high. Under the tall structure, the cost of managing the structure is very
high since they have many layers of staff whereas costs related to flat structure have relatively
low compared to the tall structure.

Within the tall structure, the opportunity for promotion is very high whereas within the
flat structure they have limited opportunities which are available for promotion in a flat structure.
In this manner, both the kind of structures have their own pros and cons as well in order to
perform accurately at the organisational level.
There are different kinds of functions of business which are very important in order to
run the organisation into successful terms with the right kind of approach.
Human resource management vs Production: Under human resource management, it is
mainly about the management of people whereas production department is also dependent on the
employees efficiency level which ultimately result into enhancement of performance level of
employees(Saint-Ges., 2021). When HR department is supportive then production department
can give their best in order to fulfil the requirements of the organisation.
Production vs Operations: Production department is related to the aspects of production only
whereas operation management is related to activities of business in an organisation. Production
department requires large scale of capital whereas operations department has the lower scale of
requirements. So in the overall manner, both the departments are interdependent on each other
because without deciding the activities of business on the daily basis it is not possible for the
production department to start their working into result oriented terms.
It has been observed at the organisational level that the activities of different departments creates
a positive impact on the people and organisation as well(Turner., 2022).Within the business,
these management activities contribute into context of enhancing the efficiency level of the
people and organisation as well. These management activities also brings new change at the
organisational and individual level as well due to which they move towards positive growth and
development as well. In this manner, the functional management activities has created a positive
impact on the people and organisations within the business environment.
Within the business environment, organisational culture plays a very significant role
which has their positive impact in terms of development. An organisational culture basically
defines about the proper ways to behave within the organisation and it basically consist of
different parameters. This culture consist of values, shared beliefs which has been established by
the leaders and then communicated to different methods.

It has been reinforced through different methods which ultimately shapes the
perceptions, behaviours and understanding of the employees. At the organisational level, it has
been observed that organisational culture impacts all the aspects of the business. It is basically
from the punctuality, tone to contract terms and employees benefits. Organisational culture
creates a positive impact on the organisation's success due to which it brings out of box results as
well (Vakkuri and Johanson., 2018) The strong and healthy organisational culture basically
cultivates the work place where employees have higher level of job satisfaction, increased
productivity and also have deeper employee engagement as well. For having a positive culture, it
ultimately lead towards the consistency and direction within the business. It also act as the guide
and actions, fuel the work force to reach towards their targets into positive manner. In this
manner, organisational culture creates a positive culture impact on the success of an
organisation.
CONCLUSION
The above stated report concludes that business organisations plays a very significant role
in terms of achieving the out of box performance level. It has been concluded that there are
different kinds of businesses which has their own significance level at the organisational level. It
has been determined that at the organisational level there are different kinds of structure of the
organisation and accordingly they have performed within the business environment. There are
different kinds of business functions which has the impact on the organisation and their people as
well. The management activities which has been conducted into the functional form has their
own importance from the point of view of organisation and people as well. At the organisational
level, organisational culture plays a very significant role due to which it creates a positive impact
on the success of the organisation. So in the overall manner, business organisations are very
essential from the economic development and growth point of view as well.

REFERENCES
Books and Journals
Alexander and et.al., 2020. Understanding how hybrid organisations tackle social challenges: An
institutional logics approach. South Asian Journal of Business Studies, 9(2), pp.193-
213.
Cartwright and et.al., 2021. Managing relationships on social media in business-to-business
organisations. Journal of Business Research, 125, pp.120-134.
Hummels, H. and Nullens, P., 2022. ‘Other-wise’Organizing. A Levinasian Approach to Agape
in Work and Business Organisations. Humanistic Management Journal, pp.1-22.
Metallo and et.al., 2018. Understanding business model in the Internet of Things
industry. Technological Forecasting and Social Change, 136, pp.298-306.
Saint-Ges, V., 2021. Business models of commercial and productives organizations of urban
agriculture [Business models des organisations marchandes et productives de
l’agriculture urbaine] (No. hal-03125356).
Turner, P., 2022. Complementarity in Business Organisations-20 Important Conclusions.
In Complementarity in Organizations (pp. 233-260). Palgrave Macmillan, Cham.
Vakkuri, J. and Johanson, J. E., 2018. Taming the monster–towards an understanding of hybrid
organisations and governance. Public Money & Management, 38(3), pp.162-163.