Qualification - BTEC Higher National in Business
Unit Name - Business and the Business Environment
Unit Number - Unit 1
Unit Reference Number - T/618/5032
Unit Level - Level 4
Unit Credit - 15
Learning Outcome 1: Explain the different types of organisations, including their size and scope.
Learning Outcome 2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure.
Assignment Title - Organisational Types, Functions and Structures
You have been employed as a Business Analyst by a large multinational organisationor a listed company in Hong Kong to investigate different types and sizes of business they will have to compete with.
You are required to investigate and explain three different types of organisations (such as a private company, a public company, a partnership or a not for profit and non-government organisation NGO), their size and classification to highlight differences between them. This should include their legal structure, size and scope, as well as their key stakeholders.
For one of the organisations, you must then explain the various functions within the business and create an organisational chart to explain the interrelationships between different functions. You must also explain how this would be different in the other two organisations.
This will be presented as a report to the CEO and should include the following:
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Question 1: Introduction to provide an overview of different types of organisations (such as a private company, a public company, a partnership or a not for profit and non-government organisation NGO)and the growth of the international business environment.
The current study is based on the investigation of different types of businesses such as private company, public company, partnership firm, non- profit organisation and non- governmental organisation. The growth of international business environment has also been explicated in the below section along with the examples of different companies chosen for the current assignment (Clarke, 2013). The three different types of organisations are explained in the below section and they include private company, public company and NGO. In regard to this, the chosen sector is health care in which the selected private organisation is Canossa hospital where as chosen public organisation is the Duchess of Kent Children's Hospital at Sandy Bay. On the other hand, the selected NGO is SKH St. Christopher's home (Salaman, 2005). The brief discussion of these organisations has been given below along with their organisational structure, mission, and vision and business objectives. In the later part of the report, the organisation chart of one of these organisations is chosen to show how the functions interrelate along with an appropriate explanation of how they relate to structure.
1.1 Overview of Different Types of Organisations
There are different types of organisations such as private company, public company, partnership firm or a non- government organisation (NGO) and their discussion are as follows:
A private company is a limited liability company that can have more than two shareholders. It is referred as private as it is not traded in public market like stock exchange and held by privates. As per Hong Kong regulations, a private firm cannot possess more than 50 shareholders as well as it is important for the company to file relevant documents and follow required legislations compliances (Goktan & Uca, 2012). Apart from this, it is not necessary for company to publicly reveal the financial information to the public and in return, its competitors do not get to know about its operations which help it to keep its comparative advantages as confidential. Also, the personal data of directors and shareholders is not disclosed among the public and it is not essential for it to seek approval from its shareholders for effective operations and growth strategy. The company acquires less number of shareholders in comparison to public companies that does not involve major disputes among the key shareholders. In context to this, the key stakeholders of a private company include suppliers, employees, consumers, shareholders, management and other regulatory bodies. In addition to this, it is not mandatory for a private company to consider alterations in share price that help it to lay emphasis on its long term growth (Alford & Greve, 2017).
A public company is said to be listed in the stock exchange and its shareholders can exceed the number of 50 unlike private company. It must have independent directors to control its operations as well as it has strict regulatory requirements so that the rights of public investors can be protected. In Hong Kong, a public company is required to announce its financial position twice a year and it has to be disclosed among the public along with the list of management. In addition to this, it is mandatory for a public listed company to get approval from the majority of its shareholders to take important decisions such as acquiring a company (Cole, 2004). The advantages of listing are gathered from the access to capital in the public financial market by issuing bonds and equity. These companies are larger in size as they possess cash in access and some of the key stakeholders of public listed companies include shareholders, regulatory bodies, consumers, suppliers, employees and management. Additionally, the public is also said to be a key stakeholder for a listed firms as there is more requirement on corporate social responsibilities for such firms (Alford & Greve, 2017).
Non-Government Organization (NGO)
A Non-Government Organization is said to be independent of governments and international government organisations as the objectives of NGOs are not making profits. This is because their aim is focused on education, humanitarian and public policy. NGOs are mostly run by volunteer or funded by donations and their operations are stopped if the donations are reduced. The trend is gaining popularity that there are some NGO who are gaining income through its daily operations and they act more like social enterprise instead of NGO. Some of the prominent examples of NGO include UNICEF, Red Cross and many more. The NGOs are likely to get shut down when their credibility is reduced as a result of bad publicity or scandals (Lekorwe & Mpabanga, 2007).
Apart from this, the NGO also have the inclusion of management teams and the board of directors in a NGO mostly hold an independent entity or popular persons that increase its credibility. Additionally, they can also be exempted for tax whilst it is mandatory for all the profit making firms to pay tax in Hong Kong. In order to get donation from the public, the NGO needs to apply for the license from the government in which the donor is just like the shareholder but they do not possess direct control on its operations. The key stakeholders of an NGO include regulatory bodies, public, employees and management. In order to maintain effective relations with the public to gain donations, the NGO has to sustain good relations with mass media as well (Ulleberg, 2009).
Growth of International Business Environment
The international business environment has been witnessing a major growth in the past few decades but it is also true that strict regulations in different nations make it difficult for company to plan their global expansion. In regard to this, the growth of NGO has witnessed a major hike with the rising civil concern on the society. The era of globalisation has ensured stiff competition worldwide and larger companies have more access to capital as they can enjoy economies of scales. This is the main reason that they are ever ready for the expansion of their business overseas and this shows that public companies enjoy a competitive advantage over private firms (Alford & Greve, 2017).
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Question 2: An explanation of each of the chosen organisations, including: background details of the organisation; the products and services they supply; the size and scope of the organisation; their vision, mission and business objectives; the organisational and legal structure; and information about their stakeholders.
Solution: Explanation of Each of the Chosen Organisations
2.1 Chosen Private Company
The selected private company is Canossa Hospital, which is a private health care organisation in Hong Kong. The organisation was founded by the Canossa Daughters of Charity in the year 1929 in which its original building with 16 beds was destroyed at the time of world war II and the next building opened in the year 1960. A new extension of Canossa was started in the year 2014 and it offers health care services to people who are suffering from different ailments. The size of the hospital is equipped with 174 beds and its vision is to offer quality holistic care to the community in the spirit of Christ. The main mission of this private hospital is to ensure care and comfort in the ward to offer quality services to its patients. One of the main business objectives of this organisation is to ensure improvements for standards in its operation theatres so that better services can be imparted to its clients. Apart from this, the management of organisation was passed on to the Caritas-Hong Kong in June, 1991 (Canossa Hospital, 2018).
The hospital has been renovating its old building with the main aim to offer well equipped operation theatres, care units, independent endoscopy unit, maternity unity and many other such facilities. Additionally, the recently renovated departments include a Specialist Out-patient Unit, Department of Diagnostic and Imaging, an Outpatient Unit, Quality and Risk Department, Dietetics and Infection Control Unit. The best part is that all these departments are properly equipped with latest equipment standards and possess a complete new look to serve the people of the nation (Canossa Hospital, 2018). The legal structure of organisation determines that it is a private non- profit hospital that takes care of people residing in Hong Kong. Besides this, the key stakeholders of Canossa hospital are employees, volunteers, community, beneficiaries and funding sources who take care of the financial needs of this hospital (Cole, 2004).
2.2 Chosen Public Company
The chosen public organisation is the C-MER Eye Care which is one of the most renowned ophthalmic service providers in Hong Kong. It is the first foreign investor to wholly own an eye hospital in the PRC. The organisation was founded in the year 2012 by Dr. Dennis LAM, who is an ophthalmic surgeon and has the clinical experience of more than 30 years. As per the reports of Frost & Sullivan, the organisation enjoyed the highest revenue growth in regard to percentages at the time from 2014 to 2016 and it has attained a great reputation among the five ophthalmic service providers in Hong Kong.
The organisation is known for its specialised services in offering treatment and therapy services for patients who suffer from ophthalmic diseases which involve glaucoma, external eye diseases, vitreoretinal, cataract, corneal, macular diseases and various other external eye diseases. The hospital is equipped with latest tools and well furnished rooms to serve patients in the best possible manner. The mission of the organisation is to offer quality of ophthalmic services and the best patient experience along with effective resources to allow its ophthalmologists and physicians to comply with the international standard of professionalism, responsibility and ethics while offering services (C-MER, 2018).
The vision of the organisation is to base itself as one of the best ophthalmic service providers in the industry. One of the most significant business objectives of this hospital include offering effective medical and ophthalmic services to its patients and attain more renowned position worldwide. The organisational structure of organisation include eight ophthalmologists along with 22 physicians in the PRC. There are three PRC physicians of this organisation who are serving overseas (C-MER, 2018). Apart from this, the legal structure of organisation makes sure that they hire qualified ophthalmologists and physicians so that a comprehensive medical team can be formed. In regard to its legal structure, the organisation comply with board diversity policy alongside it has clearly determined the role and functions of its shareholders on its site. The key stakeholders of the hospital include community partners, public, customers, management and regulatory bodies who work for the betterment of this health care service provider (Goktan & Ucar, 2012).
2.3 Chosen Non- Government Organisation
The chosen NGO is SKH St. Christopher's home that started its services in the year 1953 and is a leading non- governmental organisation in Hong Kong which is highly committed towards helping the children as well as youth who are unable to attain adequate family and health care services. The company offers services like residential child care, children health development services, pre- primary education, service for low income families along with clinical psychological services. The NGO has 900 teams that serve more than 10,000 families every year and helps in kindergartens, primary and secondary school services. The vision of the organisation is to become a social service organisation that inherits and spreads the love of Christ and pursues excellence (SKH St. Christopher's home, 2018).
In addition to this, the mission of this NGO is following the love of Christ with the main aim to create and sustain a caring environment for children and youth to grow, to develop potentials and to live a life of fullness. The business objective of this organisation is not to earn profit but to offer effective health care and education services to under privileged children. The stakeholders of company include donors, communities, public and regulatory bodies (SKH St. Christopher's home, 2018). The organisation is exempted from tax as it works for the upliftment for the under privileged children. Apart from this, the organisational structure of the organisation starts from council, then comes the Chief Executive and then comes Assistant Chief Executive and other directors and departments comes under them (Ulleberg, 2009).
Question 3. In detail, explain the functions for one of the chosen organisations, using an organisation chart to show how the functions interrelate and an explanation of how they relate to structure.
Solution: Explanation of the Functions for One of the Chosen Organisations
The selected organisation for analysis is SKH St. Christopher's home and the below mentioned organisational chart shows the different functions that are performed in the organisation. From the organisational chart, it is apparent that the company follows the line organisational structure in which line managers are liable to direct control over lower level employees. The chief executive of the organisation has direct vertical relationships between different levels and this clarifies authority, responsibility and accountability relationships. This kind of organisational structure helps in fast decision making as well as it is simple to understand. The different line managers are related to medical, nursing, health, administrative, financial and human resources. It is noteworthy that in SKH St. Christopher's home managers possess staff authority, i.e., power to instruct the line over the line.
The employees of this NGO possess greater closeness and it is considerable that in the organisation, the staff personnel who are expert in certain fields have provided functional authority. From the chart it is apparent that head of Human Resource Unit is Prof Paul Knauk, while accounting unit is headed by Ms Joseph HO. On the other hand, resource development and promotion unit department is looked after by Mr. PL Kaul and other chief executive services are looked after by different supervisors in which managers possess direct and clear authority over their respective subordinates through the chain of command. Authority flows from top to bottom with the help of numerous managerial positions. It is evident from the below figure that different departments are formed for basic activities and departmental heads are accountable for all the major activities performed in the department (SKH St. Christopher's home, 2018).
All the departments are closely interrelated to each other considering the notion that residential child care services looks after the medical health of children. Apart from this, pre- primary education service department looks after the education services of disabled and poor children (Clarke, 2013). The social enterprise department looks after the social lifestyle of children and is responsible for offering them a better life (Salaman, 2005). The finance department helps in administrating while addressing all the financial duties of the hospital whether it is related to making payments to employees or taking payments from patients. Whereas, the human resources department ensures that the hospital has adequate supply of human resources in all the departments for effective administration and functioning. In this manner, different organisational functions of the SKH St. Christopher's home are related to each other and work effectively for the development of the NGO (Cole, 2004).
It can be concluded that in this report, three different types and sizes of organizations have been discussed. These three types of organisations are private, public and NGO and all the organiustaion belong to the health care sector. This report clearly explains every chosen organisation along with their background, services they offer, their size, vision and mission and their organisational and legal structure. Further, the public organisation Duchess of Kent Children's Hospital has been selected to demonstrate its functions and to discuss how they are interrelated to each other.