1. GCE Applied ICT G041: Lesson 02 Types of Organisations
Mr C Johnston

2. Learning Outcome
Understand and explain characteristics which can be used to describe an organisation including
Organisation type
Type of ownership
Mode of operation
Customer base
Structure
Finance provision

3. What Is An Organisation?
An organisation can be broadly defined as:
“Any individual or more commonly, any group of individuals, working in a structured way to accomplish specified tasks or results”.
“An organised group of people with a particular purpose, such as a business or government department.”
“An organisation is an entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment The word is derived from the Greek word organon, which means "organ".”

4. Organisation Characteristics
Organisations or have several characteristics we can consider when analysing them
Type of organisation
Ownership
What the mode of operation is
Who their customers / clients are
What form their organisational structure takes
How they are financed

5. Main Types of Organisation
What are the three main types of organisation?
There are three main types of organisation:
Commercial Organisation
Public Service Organisation
Charitable Organisation
Create some revision notes that explains the aim of each organisation type. Give examples of each.

6. Ownership Sole Traders Partnerships Limited Companies
One single owner who takes all the risk
Partnerships
Two or more people who split the risk
Limited Companies
Companies issue shares to shareholders
Only responsible for the value of your shares
LTD Private Limited Company
PLC Public Limited Company
Feature
Sole Trader
Partnership
LTD
PLC
Create a table that compares the main features the different types of ownership so they can be easily compared.

7. Mode of Operation
The sector(s) which organisations are said to trade in is known as the mode of operation
Primary Sector
Acquiring Natural Resources
Secondary Sector
Add value to natural resources or to products which have been derived from natural resources
Tertiary Sector
Provide a service
Quaternary Sector
Research, technology and information based services

8. Customers / Clients
Customers / clients are the people who consume the organisations activities
The population of customers built up by an organisation is called its customer base or clientele
Size and suitability of an organisations customer base can determine the health of an organisation
Different terms for customers / clients include patients, patron, consumer, benefactor, student
Customers could consist of individuals and other companies
How to size and suitability of a customer base determine the health of an organisation?

9. Organisational Structure
Every organisation needs a structure else there would be chaos
A diagram of an organisation’s structure is important as it illustrates the chain of command
Structure diagrams also indicate who is responsible for what within the organisation
Companies with lots of levels are known to have hierarchical structure
Those with few levels are known to have a flat structure

10. Sources of Finance The main two sources of finance for a company are
Investment (e.g. shareholder funds)
Loans
Mature companies find raising capital easier as they have a trading record
There are “venture capital companies” and grants that can assist young companies
What is the difference between investment and a loan?

11. Examples of UK Organisations
Activity
Create the following table
Examples of UK Organisations
Include as many companies as you can think of in you table – the mission statement will help you understand their aim
Try and include a good variety of ownership and operation types
You will have to use the internet to find out the ownership of each company, perhaps the companies website will tell you this
Organisation Name
Mission Statement
Organisation Type
Ownership Type
Operation Type(s)

12. Reading Company Information Business Ownership Industry Classification
Business Ownership
Industry Classification
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13. Exam Question
1. Most schools and colleges are examples of public service organisations. a) Describe what is meant by a public service organisation. [2] b) Give two other examples of public service organisations. [2] c) Give one example of a type of commercial organisation and describe the service it provides [3]