1. G041: Lecture 02 Types of Organisations
Mr C Johnston
ICT Teacher

2. Session Objectives Understand main types of organisation,
Understand that organisations have several characteristics,
Know different types of organisational ownership,
Know different ways in which organisations can be categorised depending on their business activities,
Understand that organisations have a structure,
Know the different ways in which organisations are financed.

3. What Is An Organisation?
An 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”.

4. Main Types of Organisation
There are three main types of organisation:
Commercial Organisation
E.G Tesco
Public Service Organisation
E.G Sidney Stringer School
Charitable Organisation
E.G Save The children

5. Commercial Organisations
Commercial organisations or “companies” have several characteristics we need to consider when analysing them:
Who their customers are,
Who owns them,
What their mode of operation is,
What form their organisational structure takes,
How they are financed.

6. Customers
Customers are the essence of the business carried out by any company,
The population of customers built up by the company is called its customer base,
Size and suitability of a companies customer base can determine the health of an organisation,
Customers could be known as other names such as Clients or patients,
Customers could consist of individuals and other companies.

7. 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

8. Mode of Operation
There are 4 sectors which organisations are said to trade in:
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
Provide information based services

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:
Shareholders funds
Loan money
Mature companies find raising capital easier as they have a trading record,
There are “venture capital companies” who specialise in assisting young companies.

11. Examples of UK Organisations
Exercise
Create the following table:
Examples of UK Organisations
Organisation Name
Organisation Type
Ownership Type
Operation Type(s)
Include as many companies as you can think of in you table. 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.

12. Exercise – Further Reading
Company Information
Business Ownership
Industry Classification

13. Exam Question….
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]

14. Exam Question Answers…
Most schools and colleges are examples of public service organisations.
a) Describe what is meant by a public service organisation. [2]
an organisation that is funded/managed/controlled (1) by the government (1) through taxes (1)
b) Give two other examples of public service organisations. [2]
Any two recognisable and distinctive public services organisation such as: hospitals / NHS, Libraries, emergency services (police/fire brigade/ ambulance).
c) Give one example of a type of commercial organisation and describe the service it provides. [3]
Any one type of commercial organisation identified and services described eg
Banks/building societies (1st)
provide financial services (1)
hold accounts (1)
lend money (1)
provide mortgages (1)
Shops (1st)
provide retail services (1)
sell goods to general public (1)
display goods for sale (1)
provide delivery services (1)