Analysing Organisational Structures and Interdepartmental Relations

This report delves into the intricacies of organizational structures, encompassing various types such as public, private, and voluntary sectors, along with their respective scopes and sizes. It examines the interrelationships between different departments within an organization, illustrating how functions like marketing, finance, and human resources are interconnected. The report further analyzes the impact of macro-environmental factors on organizations using the PESTEL model, and evaluates the internal and external factors of a specific organization through SWOT analysis. Finally, it provides a critical analysis of business structures, interdepartmental relationships, and the interplay of macro and micro factors, offering insights into how these elements influence business operations and strategic decision-making.

UNDERSTANTING
DIFFERENT TYPES OF
FUNCTIONS AND
STRUCTURES OF
ORGANISATIONS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
P1- Different types of organisation and there purpose...............................................................3
P2- Scope and Size of different types of organisation ................................................................5
M1- Analysing scope of business linked with achievment of organisational goals ...................6
LO2..................................................................................................................................................6
P3- Interrelationship between various department in an organisation ........................................6
M2- Analysing interrelationship between various busines functions .........................................7
D1- Critical analysis of business structure and interrealtionship between departements...........7
LO3..................................................................................................................................................8
P4- Impact of macro environment on organization.....................................................................8
M3- Applying appropriate PESTEL model.................................................................................9
LO4..................................................................................................................................................9
P5- Internal and external analysis of specific organistion ..........................................................9
M4- Applying Appropriate SWOT analysis..............................................................................10
P6- Interelationship of strengths and weakness with external macro factors ...........................11
D2- Critical analysis of macro and micro factors .....................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Organisational structure is made of different elements that create a flow of ideas,
communication which is being runned throughout the organisation. Employees hierarchy in
organisation helps in creating proper chain of responsibility and command. It helps the company
in a way to encounter flow of information and ideas from one departments to another. The
prominent function of structure in organisation is it provides clear chain of command and defines
reporting to various authorities. Companies account and use to multiple levels of management
which involves various hierarchy present in different forms of companies. Ford is an
multinational American automaker that is being headquartered in Dearborn, a suburb of Detroit
which is into manufacuring and selling of vehicles. Present report will address to various size,
types and scope of organisations, demonstrate interrelationship with different organisations and
how they link with the organisational structure, will brief on contemporary examples to
demonstrate various influence on business operations, and will also determine strengths and
weaknesses of specific business and will explain their interrelationship with various macro
factors that are external in nature.
MAIN BODY
LO1
P1- Different types of organisation and there purpose.
There are different types of organisation working all across the globe such as public,
private and voluntary sector which are explained as below,
Public sector – It is also referred as state sector as it is the part of economy that is composed of
both public enterprises and public services. It is referred to as sector which provides public
goods and services of government such as Health, law enforcement, military, infrastructure such
as roads, telecommunication and various others. NHS is national health service which is based
out of UK to provide quality helathcare to its citizen which serves in the interest of serving in
society and not with the motive to make money, in general it consist of governments and all
publicly funded agencies or can be said as publically controlled entities and enterprises that
accounts and deliver to public goods, services and programs. The concept of public sector such
as NHS in UK is much more broader than that of core government and may sometimes overlap
with private sector and non profit organisation (Ledley, 2020).

Main purpose of pubic sector organisation such as NHS is to helps government in country
to enforce control that is social on industry and trade which helps in ensuring quitable
distribution of services and goods.NHS is set up with aim and purpose of providing services to
its general public rather than making up of profits.
Legal structure of this is it is seperate legal entity , where each shareholder is a part of it
who are being appointed in AGM. The elected directors act s representatives in taking and
managing decisions (MUKHIBAD, 2020).
Private sector- It refers to the companies which are being owned by individuals or set of
individuals. It is the part of economy which is being sometime reffered to as sector of citizen,
which is being owned by private groups, which is usually in means of enterprises that are
concerned with the motive of generating revenues and profits and which are being rather than
being owned by the government authoritry. Private sector organisation such as Ford is a part of
economy that is being runned by various individual and with motive of generation of profits.
Therefore its main purpose and aim encompasses all for businessess that are profit
making and are not under control of government (Vanstraelen, Schelleman, 2017.).
Legal structure of this companies are the liability of shareholder are limited to numbers of
shares they hold which can be in terms of both when company like Ford suffers loss and achieve
profits. It shares can not be traded to general public as this are the organisation which are being
runed by individuals to generate profits and not with the means of serving the society. This are
not listed in any stock exchange as it prohibits to sells its share to general public.
Voluntary sector – It refers to the organisation such as Samaritans where there primary purpose
is not to generate profits rather than making social impact. This is independent sector which
encompasses duty of activity that is social in nature and to serve the society that are non profits
and non governmental organisations suchs as Samaritans. Purpose of this organisation is to serve
the needs and wants of society to promote well being and welfare in the society and not with
motive to earn revenues.
Legal structure of organisatiion such as Samaritans is unincorporated association or can
be trust and a company which is being limited by guarantee where it is ideal for groups with
short term goals to serve the society, low incomes and who are not intended to acquire any
property and staff(Yasir, 2016). .

P2- Scope and Size of different types of organisation
Scope of public sector undertaking such as NHS flows from policies and strategies that
governs the economic development and the structure of economic system of a country. It
countries like UK it is intended with the purpose which is primarly ensured supply of essential
services and goods such as healthcare and various other at reasonable prices (What are Public
Enterprises ?.2020) . It scope is organisations are entitled to use of public powers and resources
which ensures that government operates in areas which are strategically important and basic and
also the areas that require huge investment beyond the scope of private enterprises. This sector
helps in advancement of economy where it provides loans , regulating commerce and trade,
heavy machine manufacturing, fertilisers, chemical drugs by which general public develops trust
as they believe what they invest is in the grounds that will never be lost which is being lacked in
private sector undertaking. Size for forming public sector enterprise is it sholud have minimum
seven member and maximum is unlimited (Sani, 2018).
Scope of private sector companies is that this are small privately held business entitites
where the liability is limited by shares, because the business are privately held, the business are
limited to having small number of shareholder (Huang, Zhao, 2016). Its shares cannot be publicly
traded which means private companies such as Ford cannot list there shares on stock exchange.
In countries like UK there is no minimum level of requirement in capital to set up private limited
companies apart from having atleast ones share issued at the time of incorporation. As many
company such as Ford operate as privately held companies as it allows them to seek protection
from personal liabilities and helps in decreasing personal risk by Whilst them to raise funds
through sell of its company shares. Size of forming a private sector company is that it requires
minimum two members and maximum two hundred memebers.
M1- Analysing scope of business linked with achievment of organisational goals .
Scope of voluntary companies such as Samaritans is that it not set up for the purpose of
generating financial gain rather than to serve the society. This organisations can be differentiated
from profit organisation on the basis that there primarly motive is not to generate profits for
business owners rather to work for benefit in interest of general public which helps company in
building reputation in marketplace Company like Samaritans fall under the category which
includes social enterprise and charity. The profits being generated in company is not being

distributed in members. The main scope of this type companies is that they are tax free and
exempted to pay the same and they generate there funding by various means such as
sponsorship, donation and by various means of investment, it usually operates in education,
scientific and religious sectors/ regions (Algharabat, 2018).
LO2
P3- Interrelationship between various department in an organisation
There are various department in company which are being interlinked with each other as
a result help company in maintaining co-ordination, which results in increasing efficiency at the
workplace and will help in knowing requirments of each department which in turn will help
company to solve queries of its customer more prominently and serve as meeting with the
changing business dynamics. It could be understood better by taking into consideration
Interrelationship between Marketing and finance department
There is a connection where marketing department at Ford closely work with Finance
department as marketing department is responsible for showcasing its products and services to its
potential customers whereas finance department is responsible for maintaining good economic
position of company where both the department work closely with each other where they can use
appropriate budget for promotion of Fords product and services which is under company
standards and which helps company to survive in highly competitive environment. This type of
interrelationship between finance anmd marketing departement helps in ensuring increase sales
of company products which will also ensures that it has sufficient budget to meet with future
challenging task of promoting companies products and services and to be competitive at te
workplace. It helps in understanding what is the return on investment that is being generated by
carrying various promotional activities which includes sales and revenue generated which is
being considered by the finance department where they can invest in various other opportunities
by the efforts of being marketing department who provide with the same to attratctr customers
(Westphal, 2019).
Interelationship between Human resource and Marketing
In company like Ford Human resource and marketing are closely related, as to carry out
promotion of goods and services of company it requires skilled and talented employees who can
help in meeting with the common desired goals of the company which are being provided by
human resource department as they conduct process of recruiting and selecting of candidate by

proper scruitny which best fit for the role which the company is looking for, which helps
company to market its products and services more prominently as a result leads to be
competitive in various business dynamnics and face challenging tasks more effectively (Moss,
217). This are interrelated as human resource at Ford helps in attracting right talent for marketing
and sales and who are being kept happy which in turn helps in deriving there satisfaction leading
and accounting to higher perfromance in making it availabe to end customer more productively.
M2- Analysing interrelationship between various busines functions
Interrelationship between Human resource and Finance
There is interconnection between finance and human resource of a company as finance
department lays down the budget of recruiting and selecting an employees and also guides
various human resource policies and strategies in accordance with the laid budget for examples
settting up of budgets for various training and development programs, fair compensation, reward
management, overtime and various others for which human resource and finance departement
closely work with each other to ensure HR activities are in accordance with that of finance
activities where it does not encounter to and affect smoth functioning of business and foster the
growth of company.
D1- Critical analysis of business structure and interrealtionship between departements
Company needs to closey monitor and account to its various departement functioning and
account to its business structure in order to ensure that there is no misunderstanding developed
in business operations which may affect its operation in terms of generating profits and builing
an image in minds of customers which is unfavourable in nature.
LO3
P4- Impact of macro environment on organization
Organizations have to change their working strategies as per changing market trends because if
they are not able to work according to the changing market trends then the final developed
product will not be able to attract trendy customers (Castañeda-Ayarza and Godoi, 2020). Thus
company has to evaluate the macro environment through which it can develop effective
organizational strategy, following is the PESTLE analysis for analysis of company's external
environment.
Political-

Political uncertainties make a direct impact on company's performance because
organizational are liable for following the governmental rules and regulations, this is important
because if they are not able to follow the rule developed by governments then in that case it has
to pay penalties which will make a negative impact on company's economic growth. For
example, in case of COVID-19 if a private organization like Ford is not obeying governmental
rules like lock-down then it has to pay penalties.
Economical-
Country's economic condition make a direct impact on company's economic growth and
this can be seen in terms of setting pricing on product or services. This happens because if the
pricing is set high enough then customers can not buy product but also at the same time if pricing
is low then less profit margin will be achieved (Idris and Rahman, 2018). Example, due to
COVID-19 many customers have lost jobs and if private company like ford don't reduce product
price then its sales will decrease.
Social-
Social factors consist of elements like population growth, career attitude and health
consciousness. These factors are important because they have a direct impact on company's
performance, this can be seen during the BREXIT in which many employees lost their jobs when
UK's decision of leaving EU was taken. This has increased the crime rated and thus public
organizations like Crown Prosecution Service has to improvise its working capabilities.
Technological-
Organizations are improving their working capabilities with technological advancements
due to which they are able to surpass traditional working procedures. This was also seen in case
of COVID-19 when public organizations like National Health service have to change their
process such that they are able to provide high level of services to customers at minimum
expenditures. Through which the probabilities of goal achievement for organization is increased
very much resulting a better performance.
M3- Applying appropriate PESTEL model
Legal-
Legal factors are the governmental rules and regulation which have to be followed by
organization because if these laws are not followed then company has to pay penalties. These
laws include several rules like labour laws, minimum wages, discrimination law and many other

laws (Mbithi, Muturi and Rambo, 2017). These laws have to be followed by public and private
sector, however voluntary sectors are non-profit organizations but still they have to follow rules
like discrimination law, woman safety laws and many others.
Environmental-
It is important for organizations that are able to develop a organizational structure such
that through their efforts they are able to improve the environmental conditions, through this
company will able to develop a positive image in front of its customers. This important because
through this positive image organizations like Shelter can advertise itself such that customers can
be attracted towards the organization.
LO4
P5- Internal and external analysis of specific organistion
There ae various internal and external anlaysis that affect business functioning and
accounts to its productive operation which helps in identifying its strength and weaknesses of
specific organisation, for better understanding, it lays down SWOT analysis of Ford as a private
company and also NHS as pubic sector
SWOT analysis of Ford- This are internal strategic factors that affect its decision making
Strength- Its biggest strength is its research and development where the company is committed to
develop and make new products. Company is continuously trying to improve its vehicles
performance by taking into consideration various other factors such as fuel efficiency, customer
satisfaction and others. Company offers and caters to all kind of groups that are diversified in
nature and take care of needs and wants of its potential customers by providing wide range of
products under it brand name.
Weaknesses – Company accounts to weak foothhold as it has diversified business operations in
many geographical regions all across the globe they lack focus in productivity and perfromances,
where they do not have strong hold in markets which are being emerging (Mathiyazhagan,2020).
There are some external factors that affect businesss functioning
Opportunities- Its biggest opportunity lies in eco - friendly vehicles as company is continuously
trying to be adaptive to technology , where they have fantastic opportunity to produce and
manufacture commercial vehicle and fuel efficient cars. It also lies in opportunity with digital
marketing which is prevailing all over the world nowadays where COVID has made physically

impossible to reach out end customers there avails opportunity of digital marketing which helps
in reaching mass market more productively(Namugenyi, Nimmagadda, Reiners, 2019)
Threats- Company is accounting to cut throat competition from its competitors like Tesla,
Toyato, Tata and various others where it keeps on struggling to maintain its position which is
being innovative in industry, it is being also threatened as increase prices of steel which can
directly affect business profits and cost margins .
M4- Applying Appropriate SWOT analysis
SWOT analysis of NHS -
Strengths- The biggest strength of NHS is clinical leadership model which is accounting to
continuous improvements in same which is accounting to consitent delivery of quality and
healtcare services. It accouts to loyal, committed and engaged workforce wit high level of morale
in delivering helathcare services. It also acknowledge areas of expertise and clinical strength
across wide range of services and which is being accounted ad supported by strong research and
development to fight against COVID -19
Weaknesses- it biggest weakness is it involves high agency staffing cost which disturbs its
business functioning where it accounts to high rate of employees turnover which leads to high
cost of recruiting new employees and involves huge efforts in terms of time by screening
employees who best fits the role at NHS (Tinga, de Back, Louwerse, 2020).
Opportunities – its opportunities lies in developing intergrated pathways with local helath
communities that helps in is expansion and challenging existing models of care. Develop high
core strength of delivering quality treatments particularly with cancer and od age patients.
Threats- Its biggest threats is loss of market to various alternative providers which are being
generally reffered to as its competitors who can build positive image in minds of its customers by
providing quality services which NHS may lack in the same (Bosch,2020).
P6- Interelationship of strengths and weakness with external macro factors
This states that there is interrelationship between strengths and weaknesses of companies
like Ford and NHS with various macro factors which can be political, economical, social,
technological, legal and environmental as mentioned below.
As Ford is accounting to continuos development and research where the company is
committed and focused in producing new products and is continuously trying to improve its
vehicle productivity and performance which have direct impact on economy of that country as it

helps in boosting sales and revenues and contribute towards econmic growth where it will be
encourage potentaial customers to buy the products and will helps company in achieving its
profit margin as prices being set by the company for its products are affordable and in
consideration with income levels which leads and serves with interrealtion of companies strength
with economic aspect of macro environment and company is also accounting to serves
diversified group of people by serving its needs and wants(Altayyar, Beaumont-Kerridgea, 2016)
As Ford is continuously driven with the opportunity and making its core strength in
manufacturing eco friendly and self driven cars it is being accounting to various interrelation
with technolgical and environmental factors where the company is constantly wiorking in
surpassing its traditional working procedure and adopting to new technologies in manufaturing
its cars for example with fuel efficiency which helps in deriving customer satisafaction, which is
also taking into consideration various environmental condition, which will helps in building
positive brand image in minds of is customers. Company by accounting to its digital marketing
activities also serves as interelationship with its technological factor as it this helps company to
have mass reach of its products and services to and helps in conveying message of what it
actually wants to conveys to the target audiences (Odubiyi, Oke, 2017.).
As company is accounting various strength is ensures that its operations are on legal and
politiccal grounds which ensures continuity of its business operation as by abiding with various
rules and regulations and which are important for companies to follow and if not followed may
lead to several implication of penalties and restrictions which may lead to non smooth
functioning of business operation where its strengths may turn out to be a weakness and
competitors coming in picture to dominate the market share by capturing large customer base.
As Ford does not account to have strong hold of its products being launched in the
emergiong markets which lacks focus in performance and productivity of its which may affect
social factors as customer may lack loyalty in company products and services which as a result
will lead to scenario where it will be hard for company to develop relationship with its potential
clients which will serve as affecting and interelationship of its weakness with social external
macro factors.
D2- Critical analysis of macro and micro factors
Company need to encounter its various macro and micro environmental factors to support
its business operation and helps in winning and getting an edge over its competition and helps in

getting and capturing huge customer base which increase and boost up sales and revenue of
company, If not may lead to a conditions which will hinder growth of company and will lead to
a position where it will be hard for company to regain the throne and be at position which it
wants to be and can result in discontinuation opf business as well if this ae not being accounted
and managed properly.
CONCLUSION
From the above report its is being cleared that there are different types of business
organisation working all over the globe which can be broadly classified as public companies,
private company, and voluntary company which have different purpose, structure and size to
operates. It also laid to the understanding of how different departments in organisations are
interelated and that ensures growth of the company such as human resource, marketing, finance
and various other departments and ensures coordination at workplace. It made to the
understanding of various negative and positive impact macro environment has upon business
operation , made us to the understanding internal and external analysis of company in
identiofying its strength and weaknesses by appplying appropriate SWOT analysis and lastly
helped in understanding of how this strength and weaknesses are interrelated with external macro
environment.
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