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Identify the purposes of different types of organisation giving examples AC1.1
Nowadays, there are various business structures of organisations. They all have diverse functions and strategies. This is determined by a particular form or type of business. For example, single proprietorship refers to an individual who owns, manages, assumes all the risk, and derives all the profit from a business. Therefore, he/she owns the business and operates it individually.
A partnership is a voluntary association of two or more persons to carry on, as co-owners, a business for profit. There are also different classifications of partnerships. They can be classified in three ways: as to object, liability, and a period of existence. There are also corporations that are owned by more than two partners. A private corporation, for example, is established for business, charitable, philanthropic, religious or professional purposes.
Most of business organisations have to perform such basic functions as planning, leading, organising, and controlling. Coordination is the last important function of a manager, and it involves the development of unity of purpose and harmonious implementation of plans for achieving common organisational goals.
Business organisations always have specific purposes. They are clearly outlined in their vision and mission statements. However, they always have to reflect companys values. Values are the principles, standards and actions that people in an organisation represent, which they consider inherently worthwhile and of the utmost importance. Therefore, mission and vision are created only after careful inspection of the companys values as well as major trends. Visioning, for instance, is picturing excellence what the person, team or organisation wants to create in its best possible future (Scott 1993). It describes possible scenarios and creates certain image of the future. Mission statements are inspirational in nature and explain what the firm hopes to attain.
Organisation always focuses on its principle goals and objectives. Business objectives are precisely depicted in keeping with the firms theory of the business. Business process is always well structured because companies adhere to specific goals. There are always many goals. Nevertheless, the most important goal is the opportunity to maximise the return on investment in the project (Holtsnider, Wheeler, Stragand & Gee 2010). Even a non-profit organisation has a value-added proposition. In this way, setting a target goal and rewarding it quickly is a proven strategy for success.
(b) Describe the extent to which an organisation meets the objectives of different stakeholders AC1.2
Our society is composed of different groups and structures. Therefore, business always interacts with social segments. When we speak of business-society relationships, we usually refer either to particular segments or subgroups of society (consumers, women, minorities, and youth) or to business and some system in our society (politics, law, custom, religion, and economics). These business groups and people constantly interact with each other. Such interaction creates the system of stakeholders. Stakeholders are those groups or individuals with whom an organisation interacts or has interdependencies.
The stakeholders are the major players on any market. They determine what a fair price is, what is a successful product, what is an unacceptable strategy, what is intolerable discrimination. There are different categories of stakeholders. Five popular types of stakeholders in business are owners, creditors, employees, suppliers, and customers. Many firms require additional financial support and that is why they refer to creditors that provide loans. However, creditors will lend funds to a firm only if they believe the company will perform well enough to pay the interest on the loans.
Businesses always need to establish a workable dialogue with stakeholders. That is why organizations always have to meet their objectives. Companies need to determine the stakeholders major concerns. For instance, there are vital corporate responsibilities toward consumer stakeholders. Consumers are, in fact, some of the most important stakeholders in any business. Consumer interests should also be foremost when businesses are designing, delivering, and servicing products (Weiss 2009). Moreover, the companies are responsible for protection of consumer rights. One of the most significant types of stakeholder engagement is one that can exercise tremendous pressure on business executive officers to behave with integrity and provide good shareholder value.
(c)M1 Explain the responsibilities of an organisation and strategies employed to meet them AC1.3
Today that business is considered good which keeps in mind the interests of different parties along with the interest of the owner. In fact, there are many parties that depend on the business. For example, employees, consumers, suppliers, government, and community are all affected by business. Thus, business has a tremendous social responsibility to satisfy these parties.
Companies also have a duty towards the stakeholder interests. Therefore, they have to adhere to the laws created by the government. For instance, a manager is responsible to pay taxes honestly, observe rules lain down by the government, help the government by establishing new industries, not to exploit government machinery by unfair means. An organisation should also be respectful towards other businesses. An enterprise must always involve or feel that other businesses have the right to exist because there is a demand for their products and services too, and they provide value to society.
Successful management is always influenced by the strength and influence of stakeholders within an organisation. However, it is vital to establish a proper power balance. In this way, businesses develop different matrixes. For example, power-dynamism matrix focuses on the amount of the power that groups of stakeholders have and the predictability of their views in relation to key change in business policy. This matrix establishes effective relations within business and stakeholders.
Any organisation has viral legal responsibilities as well. The first responsibility is to provide jobs to employees. Keeping people employed and letting them have time to enjoy the fruits of their labour is the finest thing business can do for society. The companies need to guarantee equal opportunities for all employees. Nonetheless, despite the presence of equal opportunities legislation, the anti-discrimination legislation has clearly failed to deliver equality of opportunity within organisations. As a result, businesses should focus more on promotion of diversity as well as equality.
A business must also be responsible to society. Particularly, the company is responsible for protecting and improving the worlds fragile environment. In fact, a vast number or industries produce contaminated emissions that can contribute to the global warming. Hence, it is vital for such business to become environmentally responsible. There are many ways to become more eco-friendly. For instance, companies ought to strictly adhere to environmental laws. The latter promote information gathering on polluting activities and encourage compromises on the societal goals. Thus, modern companies have a vast number of significant responsibilities.