Assignment Cover Sheet

Qualification Unit number and title

BTEC HND in Business (Level 5) M1U1: Business and the Business Environment

Student name Module Tutor

Henuka Vithanage Dr Manil De Mel

Learning Outcomes Date issued Deadline Submitted on

25 June 2022 – Before

LO 1 and LO 2 19 May 2022 25th June 2022
10.00 am

Assignment title Individual Written Report: Types, Structure and Functions

In this assessment you will have opportunities to provide evidence against the following criteria. Indicate the page
numbers where the evidence can be found for each criterion.

Criteria To achieve the criteria the evidence must show that the student Evidence
reference is able to: (Page no.)

Explain different types and purposes of organisations; public,

P1 08 - 11
private and voluntary sectors and legal structures
Explain the size and scope of a range of different types of
P2 20 - 23
organisations.
Explain the relationship between different organisational functions
P3 30 - 31
and how they link to organisational objectives and structure.
Analyse how the structure, size and scope of different organisations
M1 link to the business objectives and products and services offered by 25 - 28

the organisations.
Analyse the interrelationships between organisational functions and
M2 30 - 31
the impact that can have upon organisational structure.

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 Provide critical analysis of the complexities of different
D1
organisations and structures.

Student declaration

I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Student signature: Henuka Vithanage Date: 25th June

2022

Qualification BTEC Higher National Diploma in Business

Level 05

Batch No 12

Module Name Business and the Business Environment

Module Number M1U1

Name of Candidate Henuka Vithanage

Candidate No. 912032237

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Submission Date 25 June 2022

Word Count 6953

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Content
1.0 Introduction………………………………...……………….……………………………...06
2.0 Types and purposes of the organization.........................................................................…...08
2.1 Based on objective……………………………………………………………………….....08
2.1.1 For-profit organization……………………………………………………………….…….08
2.1.2 Non-profit organization……………………………………………………………………09
2.2 Based on sector…………………………………………………………………………….10
2.2.1 Public sector………………………………………………………………………………..10
2.2.2 Private sector……………………………………………………………………………….10
2.2.3 Voluntary sector……………………………………………………………………………11
3.0 Legal structure of the organization…………………………………………………………12
3.1 Incorporated organization…………………………………………………………………..12
3.1.1 Public limited companies………………………………………………………………..….13
3.1.2 Private limited companies………………………………………………………………….15
3.2 Non-incorporated organization……………………………………………………………..16
3.2.1 Sole proprietorship………………………………………………………………………....16
3.2.2 Partnership…………………………………………………………………………….……17
4.0 Size and scope of different organizations…………………………………………………..20
4.1 Size comparison…………………………………………………………………………….20
4.2 Scope comparison…..………………………………………………………………………20
5.0 Organization structure………………………………………………………………………23
5.1 Tall organization structure………………………………………………………………….23
5.2 Flat organization structure………………………………………………………………….23
5.3 Virtual organization structure……………………………………………………………….23
5.4 Boundary-less organization structure……………………………………………………….24
6.0 Business objectives and services and their linkage with the structure, size, and scope of…25

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 the organization
7.0 Organizational functions………………………………………………………………….28

8.0 Interrelationships between organizational functions and their linkage with……………..30

Organization objectives and structure

10.0 Conclusion……………………………………………………………………………….31
11.0 Reference………………………………………………………………………………..32

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1. Introduction

The term business environment' refers to the whole of all people, organizations, and other forces
that are not under the control of industry yet may have an impact on its output (Dec 2020). Various
scholars have defined the term 'business environment' as follows: "Business world covers the -
climate' or set of economic, social, political, or institutional conditions in which business
operations are conducted (M. Weimer.)
The objective of the report is to help a group of investors who intend to form a new business to
understand the different types and functions of the organization.

Firstly the author starts with the introduction. Secondly, the author will discuss the types and
purposes of the organizations, and the third the author will describe the legal structure of the
organizations, The 4.0 is the size and scope of different organizations. 5.0 organization structure
and 6.0 Business objective and services and their linkage with structure. The author will explain
organizational functions at 7.0. The 8.0 interrelationship between organizational functions and
their linkage with organization objective and structure.9.0 critical analysis, 10.0 conclusion. In the
final reference list.

Hotel and Tourism

The hotel sector is a part of the service industry that deals with guest lodging or accommodation.
By most definitions, the hotel sector includes not just hotels, but also hostels, motels, inns, and
guest houses, among other forms of overnight lodging. It does not, however, usually comprise
long-term or permanent accommodations (Hotel Industry 2022). The hospitality and tourism
industry is a large industry that encompasses all financial activities that contribute to or rely on
travel and tourism, whether directly or indirectly. Hotels and Resorts are part of this industry
sector. Restaurants and catering are two types of businesses. Bars and nightclubs (Hotel industry).
In general, a hotel is a professionally managed facility or establishment that offers guests a place

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to stay overnight – for a fee – in exchange for money. The specific facilities and services supplied
to guests might differ significantly from one hotel to the next, and hotel owners often attempt to
appeal to a specific sort of consumer through their pricing model and marketing strategy, as well
as the services they provide (Revfine). It's critical to establish what the term "tourist industry"
means. In essence, it refers to any activity involving the short-term movement of people to
locations other than their customary residence. It is one of the world's major industries, and many
countries economies are mostly driven by their tourist trade. It is also a broad industry that
encompasses the hotel business, transportation, and a number of other industries or sectors. It is
critical to recognize that the tourist sector is dependent on people travelling to different places for
a variety of reasons, including leisure, business, and other factors. Having stated that the tourism
business does not cover activities according to the most prevalent definitions

(Tourism industry 2022).

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2.0 Types and purposes of the organization

2.1 Based on objective

2.1.1 For-profit organization

It is a company that strives to make money above and beyond its required costs in order to spend
more on its operations, pay dividends to its shareholders, and increase wealth for its owners and
investors. It is motivated by profit. This isn't necessarily a bad thing. Simply said, this is what all
businesses do when their primary objective is not to promote causes. They may operate in a moral
manner, but their primary purpose must be to generate a profit (Annette Lawson 2017).

Advantages

A profit-making firm has several advantages, one of which is that if it is successful, it earns money
for its owners. Profitable firms can also produce revenue from a variety of commercial operations,
such as the selling of a variety of products or services. Profit-making business leaders often have
more control over the business and investment decisions that their companies make while striving
to make money (Biz fluent).

Disadvantages

One of the most significant drawbacks of a profitable firm is that its profits must be taxed. This is
why many companies work hard to take advantage of all possible business income tax deductions.
Profitable companies must face difficult decisions such as whether to reinvest profits in further
expansion or to distribute it to shareholders in the form of dividend payments. Profitable
enterprises must also contend with rising expectations in the twenty-first century that they balance
earnings with social and environmental responsibilities (Biz fluent).

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Examples

Airlines, construction companies, freight hauling companies, manufacturers, publishing

companies, restaurants, retail stores, and shipping corporations are examples of for-profit
businesses (27, Feb 2022).

2.1.2 Non-profit organization

A nonprofit organization (NPO) is one that is driven by a commitment to a specific goal that is the
focus of all earnings over and beyond what is needed to run the organization. NPOs have tax-
exempt status from the federal government as a result of this, which means they don't have to pay
income tax. Trusts, cooperatives, advocacy, charitable, environmental, and spiritual organizations
are all examples of nonprofit organizations. Many, but not all, non-profits use paid staff in
managerial positions; almost all rely on volunteers. Unlike for-profit organizations, non-profits
have no owners, and any surplus gains after operating costs are used to further the organization's
goals rather than being distributed among contributors or workers (nonprofit organization 2022).

Advantages

Much nonprofit personnel are personally invested in and committed to the organization's mission.
A woman whose cousin or close friend has battled breast cancer, for example, would search for a
job with the Susan G. Komen foundation. A parent whose child participates in scouting may be
eligible for a job on the Boy Scouts of America's staff. Employees who believe in the nonprofit's
mission, beliefs, and philosophy have an advantage. Employees having a genuine interest in a
nonprofit organization may also have a better understanding of its structure and processes
(nonprofit organization 2022).

Disadvantages

Fund creation and financing might be the most difficult task for a nonprofit organization, especially
during a recession and when unemployment rates are high. In reality, several NGOs are forced to
stop providing services to underserved communities due to a lack of financing. A good grant writer

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with a high success record is also required for fund development. Hiring a grant writer can be
expensive, turning the fund development hurdle into a necessary bet (nonprofit organization 2022).

Examples

Churches, public schools, public charities, public clinics and hospitals, political organizations,
legal assistance societies, volunteer services organizations, labour unions, professional
associations, research institutes, museums, and some governmental agencies all are part of the non-
organizations (2022).

2.2 Based on sector

2.2.1 Public sector

The general definition of the public sector involves government ownership or control rather than
just function, and so encompasses activities such as exercising public authority or enforcing public
policies, all levels of government and government-controlled businesses make up a component of
the economy. It excludes private businesses, non-profit organizations, and private homes

(Kai wegrich).

Public sector agencies include the police, military, public roads, public transit, and public
education. Public companies and NGOs are similar to government organizations in that they
supply programs, goods, or services, but they are not governed by the government and may have
revenue sources other than government money. Entities controlled by the government. (2018).

2.2.2 Private sector

The private sector refers to the portion of a country's economy that is controlled, managed, and
owned by private persons or businesses. The private sector has a profit motive and employs more
people than the government. A private-sector organization is formed by starting a new business or
privatizing an existing one. A huge private company might be privately owned or publicly traded.
Customers do not want to spend more for something when they can get the same item for less

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money elsewhere; in theory, customers do not want to pay more for something when they can get
the same item for less money elsewhere (Chappelow 2019).

Google, Amazon, Apple, and others are some of the most well-known private companies in the
world. Any country's private sector provides vital employment opportunities for its residents.
Hospitality, aviation, real estate, automobiles, healthcare, and media are some of the areas with a
large number of private companies (Anon 2021).

2.2.3 Voluntary sector

The Voluntary Sector (also known as the theory industry, nonprofit sector, or local council) is
made up of groups whose mission is to promote and develop society, typically without regard for
profit and with little or no government involvement.

Unlike the corporate sector, where profit production and return to owners are prioritized, money
raised or produced by a non-profit organization is typically put back into the community or the
organization itself. The voluntary sector's goal is to build social wealth rather than material gain,
according to one perspective. Even though the volunteer sector is distinct from the public sector,
numerous organizations work closely with governments at all levels to promote it
(PRIVACYSENSE 2015).

The following are some examples

World Vision, the American Red Cross, and other charities David Suzuki Foundation, and Bill and
Melinda Gates Foundation are two YWCA foundations.

Human Rights Watch and the Environmental Protection Agency are two examples of social
welfare organizations (EPA), Privacy International and the World Wildlife Fund are two advocacy
organizations. Churches, Mosques, and Temples are examples of faith-based organizations.
Neighborhood Watch, for example, is a community group. Knitting Ultimate Frisbee and Running
Clubs are examples of recreational sports (2015).

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3.0 Legal structure of the organization

3.1 Incorporated organization

In general, the term "incorporated" refers to the process of registering your company with the state
to establish it as a distinct legal entity. Creating a limited liability company (LLC), a C-corporation
(C-corp), or an S-corporation is what is referred to as "incorporating (2021).

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3.1.1 Public limited companies
The Functions of a Public Limited Company (PLC). A PLC is a business that has made stock
shares available to the general public. The limited liability applies to the purchasers of the shares.
This means that they are not liable for any business losses that exceed the price they paid for the
shares (PLC 2022).
Capital Raising Through Share Public Offering
A public limited business has this as its principal benefit. By issuing shares to the general public,
a public firm can raise funds. By putting up its assets as collateral, it can also obtain a loan from a
bank or other financial institution. It gives investors the chance to acquire stock in the company.
This can provide liquidity for shareholders as they can sell their shares on an open market. The
public can have more faith in a company's management team because public corporations are also
subject to higher degrees of public scrutiny.
Increasing shareholder diversity and risk distribution
A business can distribute ownership risk among its shareholders by issuing shares to the general
public.
Prestigious reputation and assurance
A distinguished status symbol is a public limited firm. It increases the public's trust in your firm
and might raise awareness of your company
Shares' Transferability
A public limited corporation has public shareholders who are free to purchase or sell the business's
stock without obtaining the directors' approval. This is referred to as "transferability of shares,"
and it makes it simpler for public firms to draw in investors than for private ones, which imposes
limitations on share transfers.
Exit Planning
You can sell your shares on the open market if you own a public limited company and decide that
you no longer want to be involved with it for whatever reason (Jhibran Qureshi).
Due to increased levels of regulatory and public scrutiny, public corporations have some
drawbacks compared to private ones. It is more difficult for public corporations to conceal their
expenditures because the general public can see how much money is spent on things like salaries,
bonuses, advertising, etc.

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More Regulatory Requirements
More rules apply to public limited firms than to private businesses. These include financial
information disclosure and Companies House reporting requirements. Every year, the shareholders
of the public limited company must vote at the Annual General Meeting (AGM) on significant
issues such as whether or not dividends should be declared. Higher Transparency Levels Are
Needed
A public limited company has more accountability in its operations and management structure than
do smaller private enterprises since it is subject to higher degrees of scrutiny from regulators and
the general public. This includes informing Companies House of financial information and
reporting requirements (UK). Every year, the shareholders of the public limited company must
vote at the Annual General Meeting (AGM) on significant issues such as whether or not dividends
should be declared.
Issues with Ownership and Control
Private companies typically have shareholders who are familiar with the founders or directors. The
firm will be picky about who it allows becoming a shareholder, making ensuring that they support
the goals and strategies of the organization (Jibran Qureshi).
In the UK, a PLC is a firm that is traded publicly. PLC or the phrase "public limited company"
must follow the names of these corporations. For instance, BP plc, an oil and gas firm with its
headquarters in London, England, is a U.K. publicly-traded company (PLC 2022).

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 3.1.2 Private limited companies

Private limited companies have some constraints on ownership yet provide their stockholders with
little liability or legal protection. These limitations, which are outlined in the organization's bylaws
or regulations, are intended to thwart any hostile takeover attempts (Shanika dilrukshi).
The fact that private businesses are exempt from public disclosure of their revenues and earnings
is one of their strongest benefits. By doing this, information is protected from public view and
rivals. Additionally, private businesses are not under the stress of having to achieve quarterly
earnings projections. This would potentially collide with choices on how much money to put back
into the company. Corporate officers are not subject to external shareholders and are not required
to disclose their compensation or bonuses to the public. Owners, officers, and directors typically
hold shares of private enterprises. There is greater freedom to experiment, explore, and take risks
than in a publicly-traded corporation because they don't have to answer to outside shareholders
(Jeane Grunet).

The number of shares of stock that private corporations may issue is constrained (and the stock is
also illiquid). The only ways to get new funds are through borrowing or going into debt. Without
the additional incentive of stock options offered by public businesses, it could be challenging to
attract top people (Jeane Grunet).

Any form of business, such as a plumber, hairdresser, photographer, attorney, dentist, accountant,
or driving teacher, may register as a private limited company. The shareholders of a private limited
corporation are its owners (2017).

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3.2 Non-Incorporated Organization

3.2.1 Sole Proprietorship

The most prevalent form of business organization, sole proprietors are companies with just one
owner. These proprietors are personally liable for the debts of their business and pay all taxes on
business income (2022).
An unincorporated firm with a single owner that is subject to personal income tax on business
profits is known as a sole proprietorship, sometimes known as a solo trader or a proprietorship.
Due to a lack of government oversight, a sole proprietorship is the easiest type of business to start
or shut down. Due to this, these company models are particularly well-liked by consultants, single
proprietors, and other independent contractors. Due to the lack of need for a separate business or
trade name, many lone owners conduct their operations under their own names
(Alexandra Twin 2020).
The key advantages of a sole proprietorship are the pass-through tax benefit, ease of formation,
and affordable setup and maintenance costs.
You don't have to complete a ton of paperwork for a sole proprietorship, such as state registration
forms. Depending on your state and the nature of your business, you might need to apply for a
license or permission. But with less paperwork, you can launch your company more quickly.
Because you do not need an employer identification number (EIN) from the IRS, filing taxes is
easier. You don't necessarily need an EIN to pay SSN taxes; instead, you can use your own Social
Security number if you so desire.
You are also exempt from paying any costs for renewing your registration or any other fees related
to the procedure because you are not required to register with your state. You can establish your
own business and save a lot of money by doing this.
A company checking account is not necessary for a sole proprietorship, unlike other business
formats. Your personal checking account can be used to manage all of your finances
(Alexandra Twin 2020).

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A sole proprietorship has several drawbacks, including unrestricted liability that extends beyond
the business to the individual and the challenge of acquiring capital backing, particularly through
recognized methods such as issuing shares and securing bank loans or lines of credit.
When a company is registered, the state offers some protection. You have no protection from
responsibility because a solitary proprietorship is not registered. Your personal property, such as
your home, is protected if you have an LLC. You lack this protection when operating as a lone
owner. A sole proprietorship may have trouble obtaining funding. Banks favour doing business
with established businesses. It can be risky for banks to lend money to someone who has a modest
balance sheet when they first start out. Additionally, because big investors favour more
sophisticated firms, getting stock from them might be challenging (2020).
The majority of small firms begin as sole proprietorships but end up changing into other legal
structures as the business develops over time. As an illustration, Kate Schade founded Kate's Real
Food as a sole proprietor. The business, which manufactures and markets energy bars, got its start
as a small business in Victor, Idaho, the hometown of Schade. The sole proprietorship began by
selling its energy bars at neighborhood farmer's markets before expanding to sell online and to a
select group of customers in Jackson, Idaho. Kate's Real Food has expanded since its 2005 debut
to supply accounts all over the nation. She changed the company's legal form from a sole
proprietorship to a corporation, which is a logical move for an expanding business, in order to
accept investments and expand (2020).

3.2.2 Partnership

A formal agreement between two or more parties to run a business and split the profits is called a
partnership.

Partnership arrangements come in a variety of forms. One type of business where partners may
have minimal liability is a partnership where all participants share profits and liabilities equally.
Additionally, there is the so-called "silent partner," in which one party does not participate in the
daily operations of the company

(Carol 2017).

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A partnership is a grouping of two or more people who work together to operate as co-owners of
a profitable enterprise. The ability of the members to cooperate, comprehend, and adjust in order
to accept and value one another's viewpoints is essential for a partnership to succeed (2020).

Simpler organization: Establishing a partnership business is simple. There are fewer legal
requirements, and the cost is likewise minimal. A partnership business can be formed without the
entity being registered. An agreement should only exist between the partners.

Flexibility: A partnership firm is ungoverned and subject to the fewest legal requirements possible.
As a result, the partners are free to alter the company to their liking. Without having to go through
excessive legal hoops, they can change the amount of investment, the size of the company, and the
management structure. When necessary, the partners of the firm can make choices based on
modifications to the external environment.
Sharing of risk: A partnership firm typically has many participants. The risk is shared by all the
members because they agree to split earnings and losses equally. As a result, each partner bears
significantly less risk than they would as a lone proprietor. Less workload encourages the partners
to take on riskier ventures with greater profit margins.
Privacy: Publication of a partnership firm's financial statements is optional. As a result, business-
related matters are kept within the business. Additionally, because the partners make all of the
major business decisions, there is no possibility of trade secrets being leaked, and the firm's
anonymity is maintained.
Work division: In a partnership, the partners divide up the firm's tasks according to their expertise.
In a partnership, there is room for labor division. Because of the division of labor, management is
more effective, which raises profitability.

Greater expansion potential: Compared to a sole proprietorship, a partnership provides a greater

potential for growth. In a partnership firm, the partners are able to raise larger sums of money
through capital and borrowings. The partners are also capable managers. Their organizational
abilities are also put to use for efficiency and growth.

Simpler dissolution: There is no formal legal process necessary to dissolve a partnership. The firm
may be dissolved due to insanity, insolvency, the passing of a partner, or other circumstances. As
a result, ending a partnership is simple and inexpensive (Prasanna 2022).

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Disadvantages of a partnership,

Each partner is "jointly and severally" accountable for the partnership's debts; that is, each partner
is responsible for their proportionate share of the partnership debts in addition to being responsible
for all of the debts.

Each partner is an agent of the partnership and is responsible for the activities of the other partners.
There is a danger of arguments and friction between partners and management. If partners join or
depart, you will likely need to appraise all the partnership assets, which can be expensive
(Tasmania).

Law firms, medical groups, real estate investment firms, and accountancy groups are typical
instances of partnership businesses. In contrast, a sole proprietorship places all of those duties on
one person, but a corporation functions as a separate legal entity from the people who already own
it (2020).
The partnership between Red Bull and GoPro is an illustration of a partnership business. While
Red Bull sells more than energy beverages, GoPro sells more than handheld cameras. They are
both lifestyle brands with comparable objectives (Red Bull).

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4 Size and scope of different organization

4.1 Size comparison

Organization Size Revenue No of employees

Rays-Lanka hotel Small Monthly they earn There is a director
R.s 400,000 8 Employees
Renuka City Hotel Medium Monthly they earn One chairman
R.s 800,000 There are 11 directors
60 Employees
Marino Beach Large Monthly they earn Owned by Damro
Colombo R.s 4,000,000 Company.
300 Employees

4.2 Scope comparison

Organization Product/Service Geographical Additional

Location Position
Rays-Lanka hotel A restaurant and free 2/5, Avissawella road,
Wi-Fi are available at Ukwatte,Colombo
Hotel Rays Lanka. Road,10700
The bed and breakfast Avissawella, Sri
offers a daily Asian Lanka
breakfast.
Additionally, visitors
get access to the
garden and the
communal room.

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Renuka City Hotel Hardwood floors and 328,Galle Road,
cable TV channels are Colombo 00300
standard in the rooms.
There is a minibar and
equipment for
preparing tea and
coffee. Free toiletries
are available in
private bathrooms.
For fax and
photocopy services,
visitors can go to the
business center. The
hotel offers help with
car rentals and money
conversions. This
hotel also offers dry
cleaning and laundry
services.
Traditional Sri
Lankan, Indian, and
European cuisine is
served at the Palmyra
Restaurant. Palmyrah
and Eclipse Bar both
serve alcoholic
beverages and light
fare.
Marino Beach There is a restaurant, 590 Marine Drive,
Colombo an outdoor pool, a Colombo 00300
fitness center, a bar,

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and more at Marino
Beach Colombo. The
hotel offers hot tubs
and air-conditioned
rooms with balconies,
desks, kettles,
minibars, safety
deposit boxes, flat-
screen TVs, and
private bathrooms
with bidets. Towels
and bed linens are
provided in the
Marino Beach
Colombo rooms.

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5.0 Organization structure

5.1 Tall Organization Structure

Because it is tried-and-true and successful, A Tall organizational structure is among the most
common forms of business structures. With the help of this structure, you and your organization's
senior executives can decide on important operational strategy decisions and then convey those
choices to middle- and upper-level managers, who subsequently devise plans to implement your
vision. The term "tall" connotes a hierarchical structure in which communications and decisions
are made at the top of the food chain and then passed down to lower-level workers
(Sampson Quain 2019).
A larger company's height or tallness is determined by its tiers or echelons. Departments in
organizations with complex organizational structures may be set up according to certain goods.
Vice presidents and managers of home goods, sports equipment, and women's clothes, for instance,
might work in a department store's corporate office (2020).

5.2 Flat Organization Structure

An organizational model known as a flat organizational structure has little or no levels of
intermediate management between the executives and the front-line staff. It aims to have the least
amount of hierarchy feasible (Anon).
One famous example of a company that has a flat organizational structure is Google. Employees
at Google can move up or down the corporate ladder as needed because to the company's
distinctive organizational structure. Because of this framework, innovation and creativity can
flourish (March 2022).

5.3 Virtual Organization Structure

An opportunistic alliance of core capabilities that are distributed throughout a number of different
operating entities within a single major corporation or among independent companies is referred
to as a virtual organizational structure (2020).
Examples of entirely virtual organizations are the Atlanta Committee for the Olympic Games
(ACOG) in 1996 and IBM's PC development activities.

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An illustration of a virtual structure is an environmental conservancy, in which a number of
organizations provide personnel to a virtual company in order to preserve, for instance, a historic
site, sometimes with the aim of generating revenue for the partners (Google).

5.4 Boundary less Organization Structure

A modern method of organizational design is the boundary less organization. Boundaries that
separate personnel, such as those caused by hierarchy, job function, and geography, as well as
those that keep businesses apart from their suppliers and clients, are all torn down in a boundary-
less organization. A boundary-less company aims to eliminate internal, external, and vertical
barriers to enable collaboration and idea-sharing amongst staff members, managers, clients, and
suppliers. The boundary less organization is frequently cited as the ideal organizational design for
the twenty-first century (MBA Knowledge Base, 2015).
Toyota is an illustration of a business that practices this. Toyota achieves efficiency and quality in
its operations through managing relationships with hundreds of suppliers. Another example of
boundary less design is strategic alliances (2021).

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6.0 Business objectives and services and their linkage with the structure, size, and

scope of the organization

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Any organization's goals are related to its size, scope, and organizational structure. The
organization is the harmonic blending of specialized components to achieve a common goal or
goals. The organization is the modification of multiple activities to achieve shared objectives. As
a result of the aforementioned definitions, it is possible to draw the conclusion that an organization
is a tool created by management to coordinate employee efforts in order to achieve predetermined
goals (L.H. Honey).
It will be difficult to achieve the goal if a company only has a small number of employees in its
organizational structure and no one is clear about their role and responsibilities. However, the
objectives of any commercial organization are determined by its size. If the company is huge and
makes significant financial investments, it will set a sizeable target as its corporate aim. The system
by which men and women are given different duties so that their individual efforts can successfully
contribute to a more or less clearly defined goal for which they have been gathered. According to
Northcott, the goal of an organization is to coordinate the activities of the numerous people that
work there in order to achieve corporate objectives (C.H Northcott).
For instance, Rays Lanka Hotel will set a little target as their goal, whilst Renuka City Hotel and
Marino Beach will set a huge target. An important private sector company, like Marino Beach, has
very broad and dynamic commercial goals that drive the business forward in the future.
Additionally, the company's size and scope enable it to produce and provide a diverse range of
goods and services. In order for the group to collaborate effectively, organizing entails creating
effective authority relationships between the chosen tasks, people, and workspaces. According to
Terry, the organization is the development of relationships between people and work in order for
it to be carried out more effectively (George Terry).

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Organizations can identify their business objectives by examining the extent of their operations. A
corporation will define its aims appropriately if its mission is to serve national clients. On the other
hand, if they discover that they serve a global clientele, they will change their business objectives
properly. The nature of the organization's product and service will dictate its structure, size, and
scope. The organizational structure is the formalized set of responsibilities that employees must
fulfil in order to perform a variety of tasks for the business; it essentially serves as a road map for
action and a means by which employees can carry out their duties in order to accomplish the
objectives established by the company management. According to Wheeler, the organization is the
process of defining the roles and responsibilities of individuals in a company in order to
accomplish organizational goals (Wheeler 2020).

Page | 27
7.0 Organizational functions

Human Resources Function,

The primary duties of human resources are to hire, select, train, and develop employees in
accordance with business policies and statutory obligations. This will entail helping employees
reach their full potential while supporting the goals of the organization. Policies that strike a
balance between organizational needs and the needs of the employees may also be developed by
human resources. They will interpret worker welfare laws and give the company compliance
advice regarding human resources laws (Learnmanagement2.com, 2019).

Sales and Marketing Function

The marketing division will investigate customer needs to create a strategy and a product to meet
that demand. The marketing division will look into the target market, the demographics of the
market's consumers (such as age, background, sex, etc.), and the preferences of those consumers.
The marketing division will then have to combine consumer preferences with lucrative product
development. Marketing will need to package, advertise, and promote the product after the
manufacturing department has designed it. Sales are in charge of persuading customers to buy
the finished product that marketing research produced. The selling technique used by the sales
department may include mailers, travelling salespeople, selling phones, and creating the sales
interview (2019).

Administrative (or Facilities Management) Function

This entails conducting all administrative duties, including mail handling, answering questions and
complaints, providing catering and using computer services. Additionally, they will manage the
organization's facilities and equipment as well as create papers (such as forms, stationary, and
newsletters) for the organization. Although it isn't usually acknowledged as being crucial, this role
is what binds the organization together. Without an administrative department, it might be
impossible to handle consumer orders, answer customer complaints, or provide the employees with
the necessary resources (Learnmanagement2.com, 2019).
Food and beverages

Any restaurants, cafés, coffee shops, bars, lounges, or other sorts of food-preparation facilities
offered at the property are managed by the food and beverage department. This division is crucial

Page | 28
for giving guests convenience and raising cash for the hotel. The food and beverage areas must be
spotless, offer top-notch goods, and deliver exceptional service. When a hotel offers outstanding
food and beverages, guests are more likely to be happy with the establishment and spend their
meal budget there (Study.com, 2022).

Front Desk and Guest Services

Guest inquiries, worries, and problems are often handled by the front desk. The personnel working
at the front desk or concierge desk need to be knowledgeable about the hotel's surroundings and
the facility itself. These employees are better able to serve the demands of the guests the much
more knowledgeable they are (Study.com, 2022).

Page | 29
8.0 Interrelationships between organizational functions and their linkage with
organization objectives and structure.

The relationships between the parts of an ordered whole are referred to as its structure. As a result,
the structure notion can be applied to anything. A building, for instance, is a structure made up of
the connections between its foundation, skeleton, ceiling, and walls. The relationships between
bones, organs, blood, and tissues make up the structure of the human body (Jo, hatch 2014). The
framework of an organization's relationships with the tasks, processes, people, and groups working
to accomplish the objectives is known as its organizational structure. An organization's structure
is a collection of procedures for allocating tasks to specific functions and coordinating them
(Monavarian, Asgari, & Ashna, 2007). For instance, the Galadari Hotel, the Kingsbury, the Marino
Beach Hotel, and other businesses have a strong organizational structure that enables them to
maintain a productive group of business operations that might offer superior values to their target
customers. Additionally, through its effective operations, this organization pursues its broad
objectives and makes them into a business.

Organizational functions work together to establish greater ideals and perform better inside the
organization; they do not operate alone. Higher operational effectiveness, revenues, and
performance are all benefits to stakeholders when an organizational function is well-organized.
All of the different tasks performed by a company as it works to achieve its objectives and offer
its products or services to the general public are referred to as business functions. Typically,
various departments that are each focused on a certain role carry out business functions. The
majority of businesses perform governance (management), finance (accounting, payroll,
budgeting, audits), marketing (pricing, promotions, and sales), production (manufacturing), human
resources (hiring and employee relations), customer service (customer relations), research and
development (improving products and services), information technology (computer management),
and quality control (product testing and problem-solving).

Page | 30
10.0 Conclusion

This report includes the hotel and tourism industry and the type and purposes of organizations, and
has been discussed the legal structure of the organization. A brief discussion about the size and
scope of different organizations. Organisation structure has been discussed briefly. This paper also
discussed the business objective and services and their linkage with the structure, size and scope
of the organization in the industry chosen. After those specific organizational functions are
discussed. This report also discussed the interrelationships between organizational functions and
their linkage with organization objectives and structure. In the last critically analyzed
organizational structure, what are the drawbacks.

Page | 31
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