Structures and Organisation

Organisational Structure in Businesses

Sole proprietorship: This is the most basic and simplest structure. In this type, a single individual operates the business and is in charge of all the decisions. They have unlimited liability, meaning they are personally responsible for the business’s debts.
Partnership: This involves two or more people co-owning a business and sharing its profits and losses. While control is shared, each partner is also individually liable for the business’s debts.
Corporation: This is a legal entity that is separate from its owners, thus providing them with limited liability. It’s run by directors and owned by shareholders who invest money in return for shares.
Limited Liability Company (LLC): This structure combines features of partnerships and corporations. Owners have limited liability but the business isn’t taxed separately.

Public Sector: These are government-owned entities, providing services to the general public such as healthcare, education, and transportation.
Private Sector: These are businesses and industries that are not owned by the government. They are profit-oriented and encompass most of businesses from small local shops to multinational corporations.
Non-Profit: Non-profit organisations run for the benefit of society or a certain target group. Any surplus money is reinvested back into the organisation, and not distributed to the owners.

Functional Structure: This is a common form of organisational structure where employees are grouped together based on their specialisations or functions, such as Marketing, HR, etc.
Divisional Structure: In this structure, divisions are formed based on products, markets, or geographical areas. Each division operates as an individual business within the larger organisation.
Matrix Structure: This is a mixture of functional and divisional structures. Employees report to two managers, their functional manager and their project or product manager.

Businesses have different cultures and working practises, such as:
- Power Culture: A single person or group holds the power and makes decisions.
- Role Culture: Employees have clearly outlined jobs and responsibilities.
- Task Culture: Teams are formed to complete specific tasks.
- Person Culture: The focus is on the individuals who consider themselves superior to the organisation.