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Different Types, Size And Scope of Organizations

Task 1: Different Types, Size And Scope Of Organizations (LO1: P1, P2 and M1)

1.1 Different types and purposes of organisations; Public, Private And Voluntary Sectors And Legal Structures

The public sector is a type of organisation that are owned and operated by government. The main aim of the sector is to provide different type of service to the people of the community. One of the major differentiations of public sector is that the main aim of the organisation is to provide public service at various levels and not to seek any kind of business profit (Jacobs, 2014). The government takes all the major operational decision in public sector that is aims to provide better quality of social service.

On the other hand as mentioned by O'Neill et al., (2016), the private sector enterprises consists of all profit making business that are controlled by private individual or business groups. Unlike the public sector the main purpose of private sector is to make maximum amount of profit by doing different types of business. The major examples of private sector in UK include large scale companies like Tesco, Asda and Lidl. The government generally plays no part in the internal decision making within any private organisation. However, they have the legal right to interfere within the external business environment that is done by implementing new business laws on tax policies.

There is also the voluntary or community sector organisation, which is very similar to public organisation and aims to provide only social service without any target of making profit. In this case however, the organisational activity are being controlled by private all Nongovernmental groups (Lawrence & Perrigot, 2015). The main purpose of voluntary sector organisation is to improve upon social and material wealth within the community. The legal structure of voluntary organisation is meant to deal w ........

rnment. The main aim of the sector is to provide different type of service to the people of the community. One of the major differentiations of public sector is that the main aim of the organisation is to provide public service at various levels and not to seek any kind of business profit (Jacobs, 2014). The government takes all the major operational decision in public sector that is aims to provide better quality of social service.

On the other hand as mentioned by O'Neill et al., (2016), the private sector enterprises consists of all profit making business that are controlled by private individual or business groups. Unlike the public sector the main purpose of private sector is to make maximum amount of profit by doing different types of business. The major examples of private sector in UK include large scale companies like Tesco, Asda and Lidl. The government generally plays no part in the internal decision making within any private organisation. However, they have the legal right to interfere within the external business environment that is done by implementing new business laws on tax policies.

There is also the voluntary or community sector organisation, which is very similar to public organisation and aims to provide only social service without any target of making profit. In this case however, the organisational activity are being controlled by private all Nongovernmental groups (Lawrence & Perrigot, 2015). The main purpose of voluntary sector organisation is to improve upon social and material wealth within the community. The legal structure of voluntary organisation is meant to deal with only social service and ensure that there is no unethical practice done by any individual (Russell et al., 2015). The Wellcome Trust and Cancer Research UK are few of the major examples of voluntary sector organisations.

 

Accordingly, the Public sector is owned and run by State government for citizens, and their aim would be to provide services that are needed by the major citizens in terms of wealth or income. These organisations are mostly been funded through taxation, and it includes the Local government, Central government and the public corporation. As opined by Rahman (2015), the private organisation is mainly owned by individuals that are not controlled by state, and in contrast, the businesses help in to generate revenue and create good profit (Jacobs, 2014). By good contrast, it could be established that as a part of voluntary sector, the non-profit organisations are mostly included as Sole trader who takes decisions of their own, and in overall, they are highly responsible for running a business to keep 100% profits.

 

1.2 The size and scope of a range of different types of organisations

The size and scope of a public sector organisation is limited to a single Nation as the government authority in the nation controls it. The size of the public organisation also varies with the total amount of asset owned by the government. The scope of public sector is also limited to the budget or funding that is allocated from the government (Wu & Chiu, 2015).

On the other hand, in case of private organisations the size and scope vary according to the investment made by the business owner. The management of private organisation can also expand the business in different nation depending upon their business plan. For example, private organisations like Tesco of UK have expanded their business in various Nation outside Europe.

The size and scope of voluntary sector organisation is mainly limited within a single community or society. It is important to mention in this context that majority of the voluntary sector organisation in UK are small with a maximum number of employees of 80000 to 90000 (Wagner et al., 2014). The size of the voluntary organisation is also dependent upon the total amount of fund that is collected at various levels.

 

It is collective that size and scope of an organisation matters, and this has been specific for organisations such as Tesco or ASDA. By far, it is relentless that the organisational structure keeps up the market structure working up for the small businesses, and this supports up for the coordination of communication between the departments. In case, the divisional structure also plays a major part in terms of scope and size because all the small businesses having different offices in a city could use up the geographical scale very well. According to Alam (2013), a matrix structure could also be intended in the phase of functional and divisional structure because employees are a major part of functional group and this serves a team to support the new product development.

 

1.3 Analysis of the structure, size and scope of different organisation linked to the business objective and product and service offered by the organisation

The business of different type of organisation that is mentioned in the previous section is entirely dependent upon the organisational structure and objective. In case of public sector, the organisation of structure is dependent upon the role played by the government or any public body. The government bodies take all the major business and operational decisions (Lawrence & Perrigot, 2015).

In case of private organisation, the organisational structure is dependent upon the decision made by private management. The private bodies in the case have the authority to take major type of managerial decisions that will control the purpose of the organization.

In case of voluntary sector, the organisational structure is dependent upon the role played by the society and other Non-governmental organisation that aims to improve upon the social and community service. The people of the society are responsible for taking all the major operational decision in voluntary sector (O'Neill et al., 2016).

As opined by Bah & Fang (2015), the organisational structures are very much dependent on the business function and due to the organisation, the objective-based area works solely for the customers.

 

It is been analyzed that size, structure and the extent of the organisation helps in connecting goals of a business, and when the organisation sets a huge target, the objective synthesizes good productiveness. Along this, if the organisation has few people in its structure, the knowledge regarding its effectiveness could be achieved with good clarity for them so that the target of the organisation can be achieved. In order, in case of any business organisation that has set its size of the organisation in terms of investing huge money can have a big target towards its business objective (Prajogo, 2016). It is analyzed that a common objective serving the profits of customers to earn profit can differ with the size of the organisation. For instance, Zaffirson food would set a small target with their set objective but the associated British Food companies with set a long-term target for the organisation in future.

 

Along with this, it is analyzed that organisation set their business objective mainly by reviewing their scope of business, and in any scope of the organisation, it serves the national customers relentlessly. What is important is to check if the serve their international customers fruitfully because for a long-term base, the business objective will set accordingly. On the other hand, as per the size, scope and structure, they might not set this (Cai & Yang, 2014). However, in terms of the scope of the business for a product or a service, it is quite vast for an organisation to create massive size of the organisation or otherwise, it would be termed as a small-size organisation.

 

Task 2: Demonstration of the interrelationship of various function within an organisation and its relationship with organisational structure (LO2: P3 and M2)

2.1 Explanation of relationship between different organisational functions and how they are linked to organisational objective and structure

The functioning of an organisation is entirely dependent upon the organisational structure. As mentioned by Ashkenas et al., (2015) there is a strong relationship between the functioning of various department within the organisation which ultimately control the overall business operation. For example the function of marketing and Finance Department are strongly interconnected due to the fact that the marketing activities promotional campaigns that are implemented depend upon the financial condition. It is also believed to have a strong interconnection with the organisational objective (Levinthal & Workiewicz, 2017). For example, the activity of the marketing campaign is dependent upon the organisational objective. In case of public or voluntary sector organisation the main purpose of marketing activities to raise the level of public awareness about various social issues. On the other hand, in case of private sector, the organisational objective of making more profit is reflected within their marketing campaigns (Fan et al., 2013).

 

It is analyzed that the associated companies generates objectives that can increase productivity for the organisation and can create an organisational assembly to maintain a movement of command in an organisation. In order, it is also analyzed that the function of the associated companies serves customers with the products and services in Tesco and ASDA. Accountably, the organisation consistency is also maintained for the Tesco through actual amount of control, and these can monitor the business keeping the structure a better functionality (Artiga & Martínez, 2016). Along these, it is also viable that the project has good knowledge keeping the effectiveness of setting a real objective for the organisation, and achieves the functions to know employee’s role and effectiveness.

 

2.2 Analysis of the advantage and disadvantage of interrelationship between organisational functions and the impact that can have upon organisational structure (M2)

The organisation structure of Tesco is hierarchical that reflect the large organisational function. Each department in the company is controlled by separate managers or board members. This is mainly because Tesco is a large organisation which several number of multiple layers (Kahn et al., 2017). The major advantage of having organisational structure is due to the fact that it can help to deal with most of the organisational functions. However, one of the major disadvantage is mainly caused by the fact that most of the organisational functions cannot be done without the approval of the board members at high level. Hence, it is not possible for Tesco to implement proper marketing decisions in a quick period.

On the other hand, the multinational organisational structure helps to better control the overall mechanism of the company, thereby ensuring that there is no such unethical policy implemented without prior notice to the board members of the organisation (Artiga & Martínez, 2017).

 

Advantages

 

It is intended that the inter employee relation among various organisational function would assist the organisation to maintain good cooperation. This may upsurge with the association among the employees in order to increase the business effectiveness (Kwon et al., 2017). However, this also helps in to escalate good profit level as every employee linked with the functional department shares information evidently.

 

Disadvantages

 

Another thing is that every employee from the major branches knows the productive operations and the job responsibilities of others, and for that, they can utilize the information needed to harm that branch encountering (Nasab et al., 2016). Moreover, this also increases the competition level among the other functional branch as well.

 

2.3 Critical analysis of the complexities of different types of business structure and their interrelationship with different organisational function (D1)

The major purpose of organisational structure is to define the activity of task allocation and coordination within an institution. However, as mentioned by Kwon et al., (2017) the robustness of business is one of the major cause of complexity in the organisational structure. The large-scale organisation of business firm is generally considered as a complex network of hierarchy. Additionally, for large scale business organisation huge number of people involved within a project increases the chance of high complexity that ultimately results in organisational conflict.

The type of complexity is entirely dependent upon the nature of organisational structure. For example, in case of bureaucratic organisational structure, the strict level of management protocol that is being implemented upon every employee, do not provide him or her with the opportunity to freely express out the issues that they are encountering (Nasab et al., 2016). Moreover, the different level of organisation structure in bureaucracy also increases the total time of all decision being implemented in practice.