Various types of Organisations

May 26

15:36

2016

Paul reffill

This article discusses about numerous type of business organisations. The organisational behaviour depends on the sort of organisation. The study has been made on UK business organisation. The organisation type defines the level of organisation.

Every business organisation exist with a definite purpose. Important to understand is that there are various types of organisations existing in the society. Major types of organisations can be listed as below:

Public Limited Company (PLC): purpose of public limited company is to generate profit and revenue and provide its stakeholders and investors good return on their investment. For PLC type of companies their shares can be traded in public, and based on the funds raised from public, it is used in further growth and expansion. Examples of such type is companies like Tesco Plc, Sainsbury’s Plc. etc.
Private Limited Company (Ltd.): Purpose of Ltd. type of company is to have control of the organisation in limited hands. Unlike Plc. companies, Ltd. companies in majority of cases do not have shares traded publicly. Ultimately major share of the profit is shared among the limited set of owners only. Companies such as Marks and Spencer, Virgin Group etc. are example of Ltd. type of company.
Public Sector organisation: Purpose of public company is to provide product or services to public either free of cost or at subsidized rates. Government owns such organisations and profit earning is not the primary purpose of such companies. National Health Services (NHS) is one such example of public sector organisation.
Franchise: Purpose of franchise type structure is to mitigate risk and capitalise on the brand value of an already established organisation. For example McDonald’s, KFC, etc. are some of the organisation which generate 80% of their revenue through this model.
Sole trader: Sole traders are the businesses owned by an individual. Purpose of this type of organisation is to have complete control of the business in hands of a single person. Profit or loss is shared completely by one person. There are almost no stakeholders in such businesses.
Partnership: Purpose of partnerships is to capitalise on strength and expertise of a different individuals. Also in partnerships loss and profit is distributed in the ratio of the share or partnership held by the partners in the business.

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