MGBBT0UBN: Essay on Understanding Business Organisations

This essay provides a comprehensive overview of business organizations and their environments. It begins by outlining various types of business organizations, including sole proprietorships, partnerships, and private and public organizations, highlighting their advantages and disadvantages. The essay then compares and contrasts different organizational structures such as functional, divisional, matrix, team, and network structures, explaining how these structures impact information flow and decision-making. Furthermore, it discusses key business functions, including production, research and development, purchasing, and human resource management, emphasizing their roles in achieving organizational objectives. Finally, the essay defines organizational culture and explains how a positive culture can significantly impact an organization's success, providing an example of a company fostering a positive working environment through digital training processes.

Understanding business
organisations and their
environments

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK 1.......................................................................................................................................3
TASK 2.......................................................................................................................................4
TASK 3.......................................................................................................................................5
TASK 4 ......................................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Business Organisation means those entities that has been formed in order to carry out
functions related to commercial and corporate activities. These organizations work upon
structure which is used for selling of goods and services in order to meet needs of customers. The
structure followed by business organization helps in making business perform functions which is
based upon production, manufacturing and selling. In other words business organizations are
used for achieving goals and objectives set with the purpose to earn profit by attaining
sustainability within market. Business organizations has wider scope which makes business
conducted in smooth and effective manner. Nature is dynamic of business organization which
impacts growth directly. In this report things covered is based over various kinds of business
organization, organizational structure and functions of Human Resource Management. In the end
impact of positive culture is discussed with examples of business organisation from various
sectors
MAIN BODY
TASK 1:Types of Business Organizations: In an country like United Kingdom various
kinds of business organizations are present which helps over operating business in more effective
manner. These organizations are divided into two main headings which are unincorporated and
incorporated organizations. In unincorporated organization business complex process are not
included which makes its functioning to be easy. There are two main organizations present
within it they are sole proprietorship and partnership(Lin, 2021). Sole proprietorship are those
organizations which are used most commonly to form business organizations for example IT
consultants and grocery stores. These organizations has only one single owner termed as sole
proprietor and all activities are handled by them. It has certain advantages that is money involved
in its formation is less. Also profit earned is kept by the owner. Disadvantages of these
organizations are funds are not arranged in time which makes organizations collapse. Then legal
formalities are not included which makes organization face legal issues at times. Partnership
organization these are those organizations within which people come together with an common
motive to earn profit for example GoPro & Red Bull. Advantages of these organizations are all
burden is over partners themselves. Disadvantage is that if an partner dies then whole partnership
is dissolved. Incorporated organizations means those organization that is based over performing

business functions related to corporate level. In this two organizations are included which are
private and public organizations(Loosveld,and.et.al 2021). In private organizations Private Ltd
is used in its end and shares are not sold in public for example broad brand service provider and
mobile manufacturers. Advantages of these organizations are right of perceptual succession
making business separate from its owner. Disadvantage is that at time rigidity exists within its
process making business face loss. The last organization is public organizations which uses
Public limited in its end and shares sold in public. These organizations is based upon concept of
social welfare. These organizations has long process for registration which includes document
collection required to be submitted to Companies House for example educational and healthcare
organizations. There are certain advantages of these organization is that it works for social
welfare which makes it more effective towards society. Disadvantage is the organization face
loss as they provide subsidy to people for which price are not charged. TASK 2: Compare and
contrast organisational structures,Organizational structure means those system that is based
upon various activities which are directed upon achieving goals and objectives of an
organization. Under these activities roles, rules and responsibilities are included within it. The
organizational structure helps in determining information making flows developed between
levels of an organizations. For example in an centralized structure , decisions flow from the top
down, while in a decentralized structure, decision-making power is distributed among various
levels of the organization. There are various kinds of organizational structure that are used by an
organization they are,Functional Structure as per these structure organizations position to work
upon functions required to be performed by an organization(Krackov, and.et.al 2021). As per
this structure hierarchical model has been used which includes clear identification of roles,
authority and promotion. As per this employees in every department covers about fulfilling
duties in relation over task completion. It is helpful for an organization to divide work as per
expertise hold by an employee. In this perspectives like production, finance, human resources
and marketing. Divisional Structure: As per the structure various kinds main focus is over
grouping departments which is used by large organizations. This structure follows functional
model which helps in tracking records of products and activities developed by an organization.
In helps organizations distinguish between customer services, production and geographic
location which make performance monitored more effectively. Matrix Structure this structure
makes organization provide upon divisional structure that makes employee's work as per the

project, product and program team(Huang, 2021). This is used in an organization for creating
motivation within employees through training over functional areas. Team Structure this is
used by an organization in making objective achieved in more effective manner. This makes
department work together helping in solving problems with efficiency. Network Structure this
is used upon making organization perform important roles in order to develop website
administration on contractual basis. These structures helps organization to develop its various
process in more effective manner. Also the structure make moderation possible within working
of an organization which makes task completed more effectively.
TASK 3: Discuss different business functions, Business functions means those
activities that has been carried out by an enterprise which makes core functions and support
functions conducted in more effective manner. These functions helps business to work upon its
various process in more effective manner(Faris, 2018). There are various kinds of functions
which has been performed by an business organization they are Production function that helps
in occupying dominant position over business activity as it is based upon production cycle which
is related upon marketing functions. In this production capacity of an organization increases with
the help of sales and revenue. This function includes fixed assets and working capital.
Production function primary focus over work done by production manager. Research &
Development (R&D) this is another important function which is used upon making development
of new product done which makes innovation done by making analysis done about the
perspective related to project. It is one of the most effective function as through this innovative
ideas has been developed through improving product in more effective manner. Purchasing
function this is one of the most important function which helps increasing sales of an
organization(Bonk, and Wiley, 2020). Also the organization through the function organization
is able to develop ideas which makes purchasing power increase. In this quality, quantity, price
and delivery is included. Human Resources(HR) management function: is one of the most
important business function for an company with a large number of employees. HR specialists
are responsible for attracting talent, screening potential candidates, managing employee
relations, and maintaining optimum working conditions. Through this function quality of
employees are improved by selecting capable candidates only. TASK 4: Define organisational
culture and explain how positive culture impacts on the success of an organisation. An
organization's culture defines about behaviour of an organization. The culture is based over

values and beliefs which makes establishment done by the leaders and communicate with
reinforced through various methods helping in shaping employee in relation over behavioural
understanding(Béres, and Fook,2019). These structure helps in developing employee's working
capacity which makes organization development done in right direction. Positive behaviour helps
in making organization develop employee in better manner. Through positive behaviour
employee and employer relationship becomes strong and effective. It makes various kinds
process within an organization performed effectively. It impacts internal working of an
organization which makes all departments work with synchronization for making task completed
within time limit specified. This is understood with an example that VB Ltd has developed
digital training process which provides employees platform for discussing issues faced in
relation to working environment.
CONCLUSION
From the above discussion it can be concluded that business organizations are those
aspects which is based upon making product and sales circulated in effective manner. Also the
essay discuss about aspects related over types of business organizations with advantages and
disadvantages. Also business functions has been explained which makes business and its
objectives achieved more effectively. Then various aspects in relation upon organizational
culture has been discussed.

REFERENCES
Books and Journals
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1612.
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Huang, L.S., 2021. Improving Learner Reflection for TESOL: Pedagogical Strategies to Support
Reflective Learning. Routledge.
Krackov, and.et.al 2021. Feedback, Reflection and Coaching: Tools for Continuous Learning. A
Practical Guide for Medical Teachers, E-Book, p.305.
Lin, T.H., 2021, January. Service-Learning Project: Different Stages of Reflection and Learning.
In 2021 10th International Conference on Educational and Information Technology
(ICEIT) (pp. 214-218). IEEE.
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