Level 2 Diploma in Business Administration Unit 2 – Understand employer organisations 1.1 The difference between organisational sectors

Understand employer organisations This presentation will help you to understand different types of organisations and the sector they work in. This will improve your knowledge about your own and other employer organisations This presentation should be used alongside the activities listed throughout. Ask your assessor if you are unsure about anything.

Understand employer organisations Each organisation is different, however they all fall into one of three categories. The three main types of employer organisations are: Private sector organisations Public sector organisations Voluntary or ‘Not for profit’ organisations

Understand employer organisations What does this mean? How are they different from each other? Which one do I work for?

Understand employer organisations Private sector organisations Are owned and controlled by individuals Exist to make a profit Trade in a competitive market Examples:

Understand employer organisations Not all private organisations are multi-national or global companies. Small organisations are in the private sector if they fit the criteria on the previous slide.

Understand employer organisations A private sector organisation can be: A sole trader A partnership A limited company A public limited company Read more here: https://www.gov.uk/business-legal-structures/sole-trader https://www.gov.uk/business-legal-structures/business-partnership https://www.gov.uk/business-legal-structures/limited-company

Understand employer organisations Public sector organisations Are funded mainly by the government Provide services to the public Do not exist to make a profit. Are financed through public and business taxes.

Understand employer organisations Public sector organisations Examples: Education: schools; colleges and other training providers National Health Service: hospitals; nursing homes; GP practices Local councils Police

Understand employer organisations Voluntary sector organisations Are independent of government Are motivated by the desire to achieve social goals (for example, improving public welfare or the environment) reinvest surplus monies rather than create profit Benefit the public Can include local community projects and groups.

Understand employer organisations Voluntary sector organisations – Examples: Charities: Oxfam; Red Cross Trusts: Housing Associations Local community interest organisations: Neighbourhood Watch Schemes Societies: local tennis club; uniformed organisations (scouts and guides, theatre groups).

Understand employer organisations Voluntary organisations are not just for volunteers who give their time for free. Voluntary organisations still employ paid staff. A salary within a voluntary organisation can usually match that of other sectors.

Understand employer organisations Which sector do you work in? To find this out, think about: Does my organisation make a profit? Who pays for my organisation to keep going? Who does it benefit? Does it sell services and products? Does it provide a public service?

Understand employer organisations Further reading: https://www.instituteofcustomerservice.com/1848-4144/Private-SectorPublic-Sector-Voluntary-Sector-and-Non-profit-making-sector.html This activity will cover Assessment Criteria 1.1