Activity 1: Understanding Employer Organisations

BTEC Apprenticeship Level 2 Business Administration: Work Area 3

Activity 1: Understanding employer organisations

Unit 2 1.1, 1.2, 1.3, 2.1, 2.2, 2.3

Employer organisations have a wide range of purposes including the supply of goods and services, and product manufacture. Some organisations want to make profits to satisfy their shareholders while others do not. In this activity you will learn about the different types of organisations in the private sector, those controlled by the Government in the public sector and those in the voluntary sector and how each type of organisation is set up against a specific legal structure.

You will also learn about the various internal and external factors that influence how organisations operate and function, and the different models of analysis that are used by organisations to assess their impact and the need for change.

There are many types of business within the UK. These range from small firms owned and run by just one self-employed person, through to large companies that employ thousands of staff all over the world. All will fall within one of three sectors however –public, private or voluntary – and their aims and objectives will differ accordingly. The key objective of a private sector organisation such as Vodafone, for example, might be to make a profit while voluntary organisations such as Oxfam, aim (among other things) to relieve poverty, distress and suffering.

1. Based upon your own experience and research carried out, you are required to identify two public sector, two private sector and one voluntary organisation and to confirm their main objectives and/or purpose. You might want to consider your own organisation when completing this activity. One example is already included for you in the table below.

Name of
Organisation / Sector / Objectives / purpose
Oxfam / Voluntary / ● To relieve poverty, distress and suffering
● To educate people about the nature, causes and effects of poverty
● To campaign for a fairer world
● To encourage Western nations to supply aid to developing countries

2. Having identified the aims and/or objectives for a range of different organisations, you are now required to define the public, private and voluntary sector and to explain the differences between them. The first definition has been included for you.

Sector / Definition
Public Sector / The part of an economy that consists of state-owned institutions, including nationalized industries and services provided by local authorities (Oxford English Dictionary)
Private Sector
Voluntary Sector
The main differences are as follows:

Organisations come in many shapes and sizes with any number of staff taking on a variety of roles. In order to manage these resources effectively, people are organised in different ways and this is referred to as the organisational structure. Organisational structures define the way in which activities such as task allocation, coordination and supervision are directed towards the achievement of organisational aims.

Consider your own organisation: What does it do? How is it structured? How do you ﬁt into it?

3. Draw an organisation chart for your company below, and show where your role ﬁts into this structure. (If your company has a published an organisation chart, obtain a copy of this chart for your portfolio.)

Different levels in a business are referred to as hierarchies. A hierarchy occurs where people are given some sort of title or rank that signifies their importance in the organisation. Some businesses have lots of hierarchies whereas others have very few. Typical examples of organisational structures include flat hierarchical, tall hierarchical, functional and matrix.

Other legal structures include public limited companies (PLC) and voluntary organisations. Identify at least one organisation within each category below and explain their particular features. Consider your own organisation, for example. Is it owned by shareholders? Does it hold an Annual General Meeting and publish financial records? Are the directors personally liable for the company’s debts?

Legal structure / Name of organisation(s) / Features and legal requirements
Public Limited Company (PLC)
Charitable Trust or Company

4. Think about the department you work in, or the whole organisation, and complete the table below.

Examples of external factors / Potential impact on the organisation
Political
Economic
Social
Technological
Legal
Environmental

5. What is a SWOT analysis?

6. Explain in a short paragraph why change is important in a business environment