1. Understand organisational structures
1.1 Explain the differences between the private sector, public sector and voluntary sector
Private Sector
Businesses and industries that are not owned or controlled by the Government. Private Sector organisations operate privately to make a profit with income generated from the sale of their products or services. Although many private sector firms are owned and controlled by individuals, many are owned by groups of people; for example, companies may be owned by shareholders, who have invested in that company.
The Private Sector includes:-
• Sole trader - an individual who owns and runs the business him or herself.
• Partnership - A partnership is where two or more people come together to operate
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They are usually controlled by a directors or a management committee.
The Voluntary Sector is often referred to as the Third Sector or ‘Not for Profit’ Sector. Whist they do not exist to provide profit for shareholders, they need to generate income.
The Voluntary Sector includes:-
• Charities – Oxfam, Red Cross, YMCA, Women’s Royal Voluntary Service
• Trusts – Local Housing Associations
• Local community organisations – Neighbourhood Watch Schemes
• Societies/Clubs – Local sports clubs, Scouts, Guides
1.2 Explain the functions of different organisational structures
Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by:
• Functions - activities such as customer service, marketing, operations, finance or IT
• Location - where regional divisions of the business take responsibility for a specific function or particular products, whether locally, nationally or internationally
• Product or services - where the business is divided into the particular products made or services provided
All organisations have employees working at different levels of responsibility. At the bottom, a business depends on its operatives to produce the products or services. Team leaders often perform the day-to-day management role, with operational managers setting direction and strategy for the business as a whole. The number of employees in each level will depend on the business’
In a business, there are a majority of structures that are organised in a business for their employees. An example of a business that has structured their employees is Asda, which was structured their business in a hierarchical structure.
Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows:
another sense, a nonprofit generates profits in order to redistribute them to people in form
55-4 A business consists of inputs and processes applied to those inputs that have the ability to create outputs. Although businesses usually have outputs, outputs are not required for an integrated set to qualify as a business. The three elements of a business are defined as follows:
Organisations must organise a structure so that their objectives can be achieved. A company will have different departments and procedures with each one having a special function. All of these organised departments and procedures are linked so the company can run efficiently. For many organisation this can be very complex has they will have offices in international countries around the world.
Every business is managed through multiple business functions each responsible for managing certain aspects of the business. There are four main types of operations found within businesses:
Many point to the fact that the non-distribution constraint creates greater service and accountability since nonprofits have no profit motive. Hence nonprofits are only interested in reinvesting their assets in their mission and increasing the quality or availability of the service(s) they are providing. ( )
market served) and scope (variety of products and services produced) or vertical; referring to how much of
NPO collaborations with external sectors can create constraints on the non-profit sector, an example, local authorities changing financial support from grants to contracts. “A voluntary organisation's mission might drift as it strives to meet contractual requirements" (Halfpenny & Reid 2002, p. 542). This is still a primary concern for the NPO sector, seeking to balance organizational mission and public accountability to funders (Jäger and Beyes, 2010). NPO’s are scrutinized greatly between competition for funding and service contracts as well as increased demand for service (Chau and Huysentruyt, 2006). Non-profits find themselves in a stringent position to match both the expectations and requirements of external funding sources while
There are two types of businesses, private and public. The difference between public companies and private companies is their ownership. Private held companies are under control of a single or group of shareholders when public companies are owned by the government.
The purpose of this paper is to explore organisational structure, examine the aspects that impact the structure of an organisation and discuss how managers should use this information.
Choosing the appropriate structure of the business practice is a complex exercise and a whole range of factors need to be analysed. One must not only analyses current circumstances, but also consider the future plans and the effect of the business structure on these future plans. Following is the brief overview of the factors which should be considered before finalising the business structure.
In introduction It is not an exaggeration to say that organizational structure is the most component in any successful business. To start, I am going to define the organizational structure, then I am going to move forward to discuss the problems and of running a business that suffers from unclear and undefined structure.
This Learner finds it imperative to have a clear understanding in the differences between Nonprofit Organization (NPO) and Non-Governmental Organization (NGOs) before selecting a structure in addressing a social issue for this week discussion. Non-Governmental Organizations (NGOs) are a type of nonprofit organizations, they are typically having broader international causes, whereas, nonprofit organizations (NPO) support causes that are at the local level. Tschirhart and Bielefeld, (2012) “viewed non-governmental organization (NGO) with civil society organizations” (p.7). An example would be, The United Nations Children's Fund (UNICEF) as a type of Non- Governmental Organization (NGO). These authors associated nonprofit Organization (NPO) with Charitable sectors who roles are providing direct relief to those in need and centers on philanthropic goals (Tschirhart & Bielefeld, 2012, p. 7). An example of Nonprofit Organization (NPO) would be Goodwill Industries.
Therefore, based on what the business is delivering to its customers, the organisation can have any of a group of structures, for example: