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In the present business environment there is required to have effective analysis of internal and external factors influencing the activities and performance of any organisation. There are various types of organisations which have different structures, objectives and functions which are interrelated and make impact on the each other and also improve overall performance of the organisation. This Business Environment Assignment – HSBC Bank report will define in detail all the important aspects related to the organisations and all related issues. There are explained three types of organisational types and ways in which there can be handled all the complexities in these organisations which can be related to the organisational functions and activities.
There is provided a scenario in which being the client manager of the HSBC Bank in the branch in Holborn. The branch manager has asked to explain about the various aspects related to three types of organisation which can be approached to give loan, mortgage and other business services which can make impact on the overall effectiveness of the HSBC bank’s performance (BANICA, et. al 2015). These different types of organisations are different in sizes, scope and their link with their organisational objectives and functions and services. For this purpose we will study about three different types of organisations and their different aspects.
This is one of the different types of organisations which are involved in different activities and have various characteristics and attributes. Sole trader organisations have single owner and can be small or huge in size based on its functions and activities provided by the company (BANICA, et. al 2015). Sole trader is the most common form of organisations and business which can be approached effectively by any bank to provide loan and mortgages and any other services. There is effective liability of the owner to run and manage all the activities in the organisation. There is prepared financial statements in the organisation in which there is included balance sheet in which there are recorded all the assets and liabilities of the organisation and there is no requirement to maintain any profit and loss statements and cash flow statements. The organisational structure is narrow in this type of organisation as in there is limited functions in the company which can handle by limited people. There is effective scope in the organisation as in there is all the power to take decisions are with the owner and there is requirement and low funds which make it possible to start something new. There is effective link between organisational performance and activities with the objectives of the organisation.
Partnership firm can be executed between two or more partners and registered in Partnership Act 2002 in which the partners work for specified objective to be achieved in specified time period. The size of the partnership firm depends on the level of operations handling by the organisation (Cheeseman, 2016). the scope of the partnership firm is expanded as in there is unlimited liabilities but now there registered partnership firms having limited liability which is also known as limited liability partnership in which there is limited liability of the partners in the firm. The profits of the firm are divided among the partners in the proportion of the capital and all the expenses are also payable by them in this portion.The structure of partnership firm is horizontal and there are taken decisions by mutual concern which makes impact on entire activities and performance of the partnership firm. Financial statements are prepared in the partnership firm in which there are defined all the important and essential aspects of the partnership firm and its running that make effective communication. There are required to be followed all the rules and regulations defined in partnership act. Financial statements of the partnership firm include profit and loss appropriation, balance sheet and partners’capital accounts to be maintained in effective manner. There are various activities which are associated with the objectives of the partnership firms. In the present business environment there are various partnerships between different organisations that are making effective results and making it more successful. It is required to have effective control and management between these activities and objectives to achieve efficient results in the organisation (Cheeseman, 2016). The products and services provided by the company areeffectively influenced with the structure, size and activities of the partnership firm.
Company is registered entities under the companies act which have effective rules and regulations to be followed and which is started with the efforts of the promoters why make the proposal to start the company and make proposal for that. There are members and directors in the company who run all the activities in the company. The capital in the company is collected by the way of issuing share capital among general public by which the shareholders of the company become owner of the company and have right to vote in the decision making of the company (Clark, 2014). The structure of the company is vertical and hierarchal in which all the authorities and responsibilities are transferred from top to bottom and decisions are taken by the management of the company. Size of the company can vary in accordance with the execution of activities in the company. The scope of the company is wide and includes various aspects which can effectively improve performance and profitability of the company. There are prepared financial statements and analysis of them can help in taking effective decision in the organisation that can make impact on overall effectiveness of the organisation. Objectives of the company vary and make impact on the overall activities of the company. Organisational objectives make impact on the various aspectsthat can make impact on overall effectiveness of the organisation. There are defined various activities in the process of production of products and providing services in the organisation which can make impact on the overall performance in the organisation.
There are various aspects related to the different types of organisation which must be analysed effectively that can make impact on organisation. Every organisation has its functions and processes which are influenced with the organisational structure and other related aspects in this. Thereexist effective relationship between the function of the organisation and their link with the organisational structure (Gupta, 2013). There are various organisational functions which vary in different manner in different organisation and some of them are defined and explained as follows.
Planning is essential organisational function which makes impact of entire activities in organisation and provides a framework which is required to be followed. Planning is to analysed different factors that make impact on the different activities which are going to be executed in the organisation and lead to effective results. There is required to adopt strategic decision making in the planning process in which all the alternatives are analysed and evaluated and the most effective is selected which lead to effective results in the organisation (Jacob, 2013). In different type of organisations there are adopted different types of planning in sole proprietorship there are limited scope planning as in the owner take decisions after analysing. In partnership firm there is conducted effective planning of activities in which there are taken appropriate decisions related to the activities in the organisation. There are also defined various aspects related to the planning in which there are taken various decisions by company in the process of planning of its activities in which there are taken effective decisions by forecasting of activities and making impact on overall performance of the organisation. There are also prepared budgets in the company for the activities which is inspired from the organisational structure and objectives.
Management of activities is essential and is most important function in any kind of organisation. Management can be defined as effectively execution of activities in the organisation by effective communication of the organisational objectives that can make impact on overall performance of the organisation making impact on overall effective decision making in the organisation. In sole proprietorship there is management done by the owner of the business. In the partnership firm management is done by the partners who are active and management in partnership firm the management depends on the organisational structure of the company (Pander, 2013). Management in any organisation is done by making effective management team who are involved in managing the organisational activities that can makeimpact on the productivity and profitability of the organisation.
Thefunction of the organisation that can make impact on the overall performance of the organisation. Administration is important to effectively execute the activities in the organisation of different types in which there are taken effective decisions related to the activities in the organisation. In the sole trading there are taken all the administrative decisions by the sole owner who run the business in effective manner. In a partnership firm there are taken administrative decisions by mutual concern and analysing the aspects and selecting the most effective. In a company there is effective role of administration in the organisation (Wetherly, et. al 2011). There are adopted hierarchy of activities which lead to taking flow and delegation of roles and responsibilities which can make impact on overall performance of the organisation that can make impact on the overall performance of the organisation.
Control over activities is required and is defined as important function of organisation in which there is established control over activities in the organisation in which there taken effective steps to control these activities. Insole proprietary firm there is taken effective monitoring steps taken by the owner and in partnership firm there are control is done by the partners in which they can control over activities. In the company there are taken effective steps for the monitoring and adopted various tools and techniques related to monitoring and control. There are set benchmark and standards which are required to be achieved in the organisation (Wetherly, et. al 2011).
This report is defining various aspects related to the organisational types and its different aspects. There are different aspects related to the organisational structure, scope, objectives, and functions which are diversified and have different aspects which are interrelated and make impact on the organisation.There are explained different aspects of the three types of organisations like sole proprietorship, partnership firm and company on the basis of their size, structure, objectives and functions and their interrelationship which define level of effectiveness in organisation. The report shows the link between the organisational functions and its advantages and disadvantages in the organisation.
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Pandey, A. 2013, "Economic and Business Environment", Vision: The Journal of Business Perspective, vol. 17, no. 1, pp. 85-87.
Wetherly, P. & Otter, D. 2011, The Business Environment : Themes and Issues, 2;2nd; edn, Oxford University Press, Oxford.