TASK 1: The business environment
1.1 Types of organizations found in public and private sector
There are various types of organizations found in the public and private sectors. People may develop their businesses both in the public and private sectors. These are described below:
The organizations of the Public Sector consisted of companies which are operated and owned by govt. and exist to give the citizens better services. Same as to the voluntary sector, public sector companies do not search to make profits. Funding for public services are generally increased throughout various types of approaches, such as fees, taxes and throughout financial transfer from another stage of govt (Gupta, A., 2015)
Private Sector is business companies which run and owned by private persons. There are different kinds of private sector businesses, such as Partnership, Sole Proprietor, Cooperatives, Limited Companies, Charities and Franchise. Despite different kinds of these types, but in fact, their aim is similar just they do it in various methods (Gupta, A., (2015). The major cause of private-sector organizations is to make a profit and develop a share market.
Sole Proprietor is the oldest as well as the easiest kind of trade which may begin with low costs, such as, mechanics, beauticians, and doctors and etc. It is an independently owned organization; this is the business type that runs as well as own by only one owner. The owner generally is the worker and boss; they may recruit employees in their own business (Gupta, A., 2014)
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A partnership is an organization that runs by 2 to 22 members and this is explained by Partnership Act 1890. There are 2 major types of partnership: limited partnership and ordinary partnership.
1.2 Different structures within the business
A structure of the business is the organization category which is lawfully known in the specified authority and characterized by a valid description of a specific category. Public organization structure varies from a private company as the public sector has regulated by the character of the govt. (Gupta, A., (2015). Besides, the private sector companies moderate private-owned consumers as their preferences and choices. Various service sectors include different business structures of an organization.
The hierarchical organizational structure includes the undeviating command chain from the top to bottom organization. Senior management creates various important decisions that are accepted throughout supplementary management levels (Gupta, A., 2015). If a person situated organizational pyramid bottom levels requires to create decisions, they exceed request up throughout the command chain for support, for that the decision will finally have arrived. The hierarchical structure functions fine when there are several goods which are sold in high volume, so that tight control can be maintained over the design, quality, production, and distribution of goods (Gupta, A., 2015)
Flat organization structure explains containing the comparatively layers little numbers in the organization’s company chart. The particular amount will differ from business complexity………….
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