Three different types of organisations their size and classification to highlight the

differences among them (three)

In Business, there are three types of organisation which are classified into different types of
ownership. They are Private Sector, Public Sector and Voluntary Sector. Private Sector
Organisation are the organisations which are owned by individuals and the business runs on
the profit of the business. The profits benefit the owner, the investors or the stakeholder of the
business. There are a small number of shareholders and the shares cannot be traded in the
stock exchange market for being private. One example of it is the Jaguar Land Rover.
Whereas Public Sector Organisation are the organisations which are owned by the
government and it provides service or goods for the benefits of the common people. Here, the
business runs by the money received through taxes. There are a huge number of shareholders
as the shares of the business are able to trade in the stock exchange market. One example of it
is the BBC. Lastly, Voluntary Sector Organisation are the organisations which are owned by
the trustees. The business is not for the profit but for the needs of the community. The
business runs by the help of donations and gifts. Here, the number of shareholders cannot be
determined. It depends on the size of the organisation. One Example of it is the British Red
Cross (Alford and Greve, 2017, p.35.).

Their legal structure, size and scope, as well as their key stakeholders(three)
John Lewis Partnership 
John Lewis Partnership is a PLC but it is owned by the Trust which was built by the Founder
for the well-being of employees. The profits are distributed at the end of the financial year i.e.
March as a salary percentage and it varies from 8% to 22%. There are over 370 employee-
owned businesses across the UK, which approximate that there are over 200,000 employee
owners. The range of the business is from manufacturers, to community health services, to
insurance brokers. Together they deliver 4% of UK GDP annually, with this contribution.
They put people first, involving the workforce in key decision-making and realising the
potential of their employees. The John Lewis Partnership is the largest employee-owned
business in the UK with gross sales of over £11.7bn with a workforce of over 80,000
Partners. The business was started by the founder John Spedan Lewis by believing that there
was a better way of doing business (Storey and Salaman, 2017, pp.339-354). 

BBC
The BBC organizational structure consists of the Governor Board, the Executive Board, the
Creative Board, the Journalism Board, and the Commercial Board. The Creative Board, The
Journalism Board and the Commercial Board reports to the Executive Board in which there
are 9 directors then from there it goes to the Governor Board in which there are 12 trustee
members and finally it goes to the Queen. There are around 22000 employees working in
BBC. Among them, 19000 employees work only in broadcasting and overall around 35000
employees work including part-time jobs, internships, etc. The scope of BBC is to provide
information, to educate and to entertain the whole nation. They also want to free the
interference of politics. The key stakeholders are employees and the customers. 
British Red Cross
The British Red Cross is governed by a board of trustees and the executive leadership team
manages the day to day management and they meet once a month. The British Red Cross was
founded in 1870. The British Red Cross is a registered charity with more than 17000
volunteers and 3400 staff. The mission of the British Red Cross is to mobilize the humanity
power so that one can deal or be prepared for the crisis. The key stakeholders are the people
who are using their services(Rennie, 2018, pp.25-41). 
You should also analyse how the structure, size and scope of different organisations link
to the business objectives and product and services offered by your chosen organisation.
(only BBC)
BBC is a public sector of broadcasting and one of the biggest broadcasters in the world. 80%
of the employees work under the broadcasting department. As there are ten national TV
channels, regional TV programmes, an internet TV service, 10 national radio stations, 40
local radio stations and an extensive website, there should be many employees to handle all
these broadcasting units. The mission of BBC is to educate,to provide information and to
entertain people around the world so they are increasing the broadcasting units as per
requirements and continuously giving services to the people. Among those TV channels,
there are channels for international news, for national news, for children and has
documentary and cultural channels as well. Thus, for the objective of the organisation each
and every thing is taken care of by the directors and the leadership management team.

LO2 (OISY)
LO2: Demonstrate the interrelationship of the various functions within an organisation
and how they link to organisational structure (general)
The functions of the organisation are impacted by the objective and structure of the
organisation. An organizational structure is a system that defines how the activities are
directed in order to achieve the aim of an organization. These activities can include rules,
roles, and responsibilities. The organizational structure also determines how information
flows between levels within the company. For example, in a centralized structure, decisions
flow from the top to down, while in a decentralized structure, decision-making power is
distributed among various levels of the organization(Huntenburg et al.,  2018, pp.21-31).

Using your chosen organisations, explain the various functions within the business and
create an organisational chart to demonstrate the interrelationships between different
functions and how they link to organisational objectives and structure. (Three picture
must)
The organisational chart comes in handy while dealing with the interrelationships between
different functions and how they link to the organisational objectives and structure. First let’s
see the organisational chart of John Lewis Partnership
         Figure 1
In Figure 1, the chart is of matrix structure. From the Figure we can figure out that in the top
level, there are Group Executive, Chairman and the Trustees. Below that, there are
Partnership Board, Partnership Council and Partnership Counsellor and below that there are
other departments. The workload of the organisation is divided among these divisions. Each
department is well connected to each other. The opinions of each department is given
importance and after the opinions, the proper plan is executed which leads to the success of
the organisation as well as maintaining consistency.
Secondly, let’s see the organisational chart of BBC

        Figure 2
In Figure 2, we can see that it is a flat structure. The Head of Technology Operation is the
one who oversees all the operations and the manager of different teams like Media,Planning
and Logistics,Support, etc. are responsible to answer to the head of technology operation. 
Third is the organisational chart of British Red Cross.
 Figure 3
In Figure 3, we can see that the managers and the supervisors encourage and motivate the
volunteers as they are the most important ones for the organisations. The managers also do
the work of fundraising, publishing, etc(Gaspary et al., 2020, pp.132-153).
 
The advantages and disadvantages of the interrelationships between organisational
functions and the impact that they can have upon organisational structure (general)

The interrelationship among the organizational functions are evident within the different
types of organisations which make it possible to deliver the products and services to the
customers. This characteristic explains that it is not enough by having all the functions within
the organisations but proper interrelation among them along with better control and
leadership in those functions can serve a good portion of the customers and helps in the
competitive scenario. There are various forms of advantages and disadvantages of this
interrelation among the organizational functions. Better interrelation among the business
functions can satisfy business objectives more effectively than any other business strategy.
Besides, organizational functions and cumulative efforts can create enhanced values along
with synergy effects that creates extra values and competitive ground for the organisations.
Effective interrelation among the functions can communicate necessary things which can be
used for the decision making purposes. Besides, corporate culture can be enhanced through
ensuring better interrelation among the business function. In some cases, those
interrelationships create some disadvantages for the organisations. The organisations will be
less effective if there is a close interrelation among the sales and production functions where
production function is poor because there is a possibility to reduce the effectiveness of sales
function. The advantages of this interrelation can positively affect the business structure and
enhance its effectiveness.

The complexities of different types of business structures and the interrelationships of

the different organisational functions (three)
Business is not at all easy these days. There is a huge competition in the business market.
Many complexities arise in business nowadays like, finance related problems, technology
advancement, infrastructural issues, availability of skilled employees, lack of expert top
managers, amendment in rules and regulations and laws, etc. There are different types of
complexity in a different type of business structure (Balland et al., 2019, pp.1252-1268).
Complexity in Public sector organization
Public sector organizations have to face more complexity in comparison to another kind of
business. One of the biggest complexities is to satisfy the stakeholder in public sector
organizations. Satisfying customer demand is a very big problem today because the demand
for the consumer is changing very frequently because of social media and networking sites.
Many more issues have to be faced by public sector organizations. 
Complexity in Private sector organization
Private sector organizations have to manage everything on their own. Their profit and loss all
depend on their own working. Managing finance is the biggest complexity in private sector
organizations. The government has imposed so many rules and regulations on the private
sector which is getting hard to follow. Diversity is very low in the private sector. Proper
management is not available in private sector organizations and unnecessary government
procedures are big hurdles in private sector organizations these days. 
Complexity in Voluntary organization
Voluntary organizations are made for social purposes instead of making a profit. Internal
control is a major complexity in this type of organization. Trustees should be good because
the success of the organization is in the hands of trustees. Proper documentation, risk
management, fundraising are the complexities in this type of organization. 

References

Alford, J. and Greve, C., 2017. Strategy in the public and private sectors: Similarities,
differences and changes. Administrative Sciences, 7(4), p.35.

Storey, J. and Salaman, G., 2017. Employee ownership and the drive to do business
responsibly: a study of the John Lewis Partnership. Oxford Review of Economic Policy,
33(2), pp.339-354.

Rennie, D.A., 2018. The Real British Red Cross and Hemingway's A Farewell to Arms. The
Hemingway Review, 37(2), pp.25-41.

Huntenburg, J.M., Bazin, P.L. and Margulies, D.S., 2018. Large-scale gradients in human
cortical organization. Trends in cognitive sciences, 22(1), pp.21-31.

Gaspary, E., Moura, G.L.D. and Wegner, D., 2020. How does the organisational structure
influence a work environment for innovation?. International Journal of Entrepreneurship
and Innovation Management, 24(2-3), pp.132-153.

Balland, P.A., Boschma, R., Crespo, J. and Rigby, D.L., 2019. Smart specialization policy in
the European Union: relatedness, knowledge complexity and regional diversification.
Regional Studies, 53(9), pp.1252-1268.