Organizations And Their Characteristics

Introduction to organizations

Organisations can be defined as a group of people with different skills which are working mutually to achieve same goals and objectivity. Organisations tend to work in a very formal way in which high focus on enhancing profitability and productivity to achieve financial gains in the business markets (Aaker and McLoughlin, 2010). The purpose behind the existence of the organizations is to attain financial gains and fulfill the economic well being of the employees and managers working in it. Organisations can be divided into three major sectors, which include primary, secondary and tertiary. In primary sectors, organizations active in agricultural fields are found in UK. In secondary sector, various companies producing products after processing of the raw material from primary sector are considered. In tertiary sector, there are organisations, which tend to provide various services to their customers.

Sole-traders can be defined as the organizations which do not have any association with other organizations regarding sharing profitability. Sole-traders tend to work freely in the business markets (Ashford and Beamish, 2012). One of the prominent advantages of sole trading is the claim to total productivity and profitability. Since there are no partners in sole-trading; therefore, the organization is liable to have full profitability in its business market. A disadvantage associated with sole trading includes no or less alliance in the times when an organisation is facing challenges in business markets. For example, various small and street-level restaurants in London can be considered as sole-traders, which do not exhibit any profit-sharing approaches. Since these organizations provide services of processed foods and drinks to their customer; therefore, restaurants in the country are considered in the tertiary sector on the basis of types of organisations.

Partnership in organization management can be defined as the approach of in which two former organizations tend to work collaboratively and use of resources of each other for mutual profitability (Batrley, 2015). It is found that organization in partnership share the overall profit gains as per their contribution in the business projects. Considering the advantages of a partnership, it can be said that such approaches allow the organisations to target superficially high productivity and profitability. As far as the disadvantages of a partnership are considered, it can be said that various conflicts about the use of resource and share in profit can affect the business. For example, MVSC is one of the prominent organizations in the UK which work in partnership with the National Council for Voluntary Youth Services. Since MVSC is providing service to their customers; therefore, the organization belongs to the tertiary sector.

These are the organizations in which the liability of the members of stakeholders is limited. The employees, investors and other entities of a limited organization can have only limited shares (Epstein et al., 2011). It is also found that there can be two types of limited companies, which include public limited and private limited based on the nature of their ownership and investment. These companies are the legal entities and have the high responsibility of sharing the profitability with regulators. Some of the prominent advantages of limited companies include a true entity status of the organization. The company is fully accountable for its debts and profitability, which can be shared as per the investments level of the investors. Disadvantages associated with a limited company include restrictions made over the investors for accessing the full profitability. For example, Marks and Spencer are one of the leading limited companies in the UK, which is active in the fields of retail marketing. For this reason, the organization lies in the tertiary sector of business.

Government and charity organization

Government and charity organizations are the companies which have the purpose of conducting various social services (Hunt, 2013). These organizations are funded by the government or regulatory bodies in the UK and are known for their social causes such as charity, fundraising, helping victims and many others. For example, Oxfam is one of the leading governments and charity organizations in the country which provides help to the people that are suffering from poverty in the UK and other countries. Due to the provision of services ion Oxfam, the organization is considered in the tertiary sector of business.

Conclusion

This way, it can be concluded that organizations are the group of people, which have certain common objectives and tend to work in collaboration for an achieving the objectives. Purpose of the organizations is to generate finances along with meeting the expectations of its stakeholders. Along with this, it is found that organizations can be divided into various categories on the basis of their ownership. Sole-traders are the organizations which work in a free manner as an individual identity and do not share their profitability with other organizations and firms such as small level restaurants in the UK and many others. Partnership is another category for classifying the organisation in which two or more companies tend to work together and use the resources possessed by each other for attaining common growth. Further, it is also found that limited companies are those in which investors are allowed to acquire limited profitability as per their investments. In a public limited company, funds are usually attained from the taxes and funds of people and communities. Furthermore, government and charity organisations have a certain social cause in their functionality such as Oxfam and many others.

Organisational structure can be understood as the model which is considered by an organization for performing its different activities such as setting plans, allocation of tasks coordination and many others (Lockie and Measham, 2012). The organisational structure of a company is helpful in understanding what approaches are considered for achieving the objectivity. There are two types of organisational structure which are explained in the following manner.

Functional organizational structure: This is one of the prominent organisational structures in which companies tend to differentiate into smaller categories or departments as per different functions in an organisation such as marketing, IT, human resource and many others.

It can be seen from the above figure that in functional organisational structure there is a number of functional areas such as research and development; production, marketing, human resource, information technology and finance and administration (Varley, 2014). All these functional areas in this organizational structure have specific functions and contribute in the overall performance of the organization.

Divisional organizational structure: This is another type of organisational structure in which the company manages its activities as per different divisions such as geographical areas, service groups, product and many others (Webster and Hamilton, 2015). Along with this, it is also found that each division acts as a separate identity and classified further.

The above figure is helpful in understanding that in divisional organisational structure, there are different divisions of a company based on geographical location, product and many others (Werther and Chandler, 2013). These divisions also have further categories, which may include production, finance, sales and many others. It can be said that in the divisional organizational structure each division acts as a subsidiary business unit (SBU) for the organization.

This way, it can be said that there are two types of organizational structure, which include functional as well as divisional structures.

Relationship of organizational structure with other functions
Introduction

There is a number of functions that are performed by the companies having different organisational structure. These functions include human resource, finance, marketing, information technology and operations (Cadle et al., 2014). The study reveals that these functions performed by organizations have great contribution in determining the productivity and profitability. Along with this, it can also be said every organization in the world is required to focus on these functions and exhibit the best approaches to target high objectivity and to attain excellence in the business markets. Some of these prominent functions performed by JP Morgan Finance and Investment are explained in the following manner.

Human resource

Human resource management is one of the outstanding functions performed by JP Morgan Finance and Investment through which the organization obtains the skillful and talented employees for working (Codita, 2011). Some of the prominent approaches exhibited by the organization in human resource management include recruiting and hiring of the people, establishing the provisions of training and development for them, recording and evaluation of the performance, considering the approaches of motivation, determining employee cycle and many others (Palmer & Hartley, 2010). This way, it can be said that approaches considered by JP Morgan Finance and Investment are helpful in enhancing the work pace and performance of the organization in its business markets.

Finance

It is another prominent function that is depicted by management in JP Morgan Finance and Investment. It is found that the organizations consider a variety of approaches in financial management (Cohen, 2015). These approaches and practices include allocation of funds to different business activities, evaluating the cash flow in the organization, carrying out internal audits, looking for the resources of attaining finance and many others. It can be said that approaches considered in finance management are highly responsible for determining the excellence of JP Morgan Finance and Investment in the business market. Finance and strategic managers in the organization carry out the activities of finance management.

Marketing is one of the best approaches that are accountable for increasing the popularity of JP Morgan Finance and Investment in its business markets (Cscmp and Fawcett, 2014). The study reveals that the organization is active in financial sectors, due to which all the marketing approaches are established for targeting the customers and selling them investments plans (Worthington & Briton, 2015). Some of the noticeable approaches in marketing management in the organization include segmenting the customers, improvisation of the finance service, establishing campaigns for targeting audiences and many others. These approaches are responsible for increasing the profitability of the organization by enhancing the customer rush.

Along with other functions, it is also a noticeable functional area in JP Morgan Finance and Investment. Some of the admirable approaches considered by the organization information technology include acquiring the new and advanced technology, adopting an update of the technology, its successive implementation and many others (Fernie and Fernie, 2015). It is found that other functions performed by IT departments of JP Morgan Finance and Investment include establishing measures for information security and many others.

Operations are also one of the important functions in JP Morgan Finance and Investment. It is found that operations in the organization include establishing the plans for more investments, inviting more investments bankers to work with the organization and many others (Ferrell and Pride, 2016). The study reveals that accomplishment of the operations is the key to success to JP Morgan Finance and Investment.

Conclusion

It can be concluded from the above segment that two types of the organisational structure include functional and divisional structure. Various functions that are exhibited by JP Morgan Finance and Investment in its business markets include human resource, operations, marketing, finance and many others. It is found that all these functional areas are closely related to each other. Effective approaches in human resource provide skillful employees to the organization which can be used for various operations. Along with this, various finance generation strategies are formulated in the company considering the available human capital, operation requirements and many others. Along with this, effective utilization of information obtained by marketing approaches is helpful in bringing excellence to JP Morgan Finance and Investment while performing in its business markets.

Task 3
Introduction to macro environmental factors

Macro factors can be understood as the external factors that can bring drastic changes in the profitability and productivity of JP Morgan Finance and Investment. Several factors can affect the business of the organization. PESTEL analysis is one of the remarkable tools that can be used to analyze factors in the macro environment, which is explained in the following manner.

Considering the political factors that can affect the business of JP Morgan Finance and Investment, it can be said that fluctuations in political stability in the UK can negatively affect the profitability and productivity of the organization. BREXIT was one of the major political decisions in the year 2016 that affected the relationships of UK with other countries in EU (Frynas and Mellahi, 2014). This resulted in an alteration in business norms and making the sustainability of the organization vulnerable.

It is found that due to leaving of EU by the UK in BREXIT referendum, Pound Sterling in the year 2016 crashed in financial markets, which also affected the sustainability of JP Morgan Finance and Investment in the stock market. The organization faced high scale reduction in investments and changes in trade rules due to which more effective approaches were required to be considered for attaining excellence in business markets.

It is found that the UK is home to people that prefer acquiring upscale lifestyle. For this reason, people tend to spend a considerable amount of their income on generating multiple sources of income (Hamilton and Webster, 2015). For this reason, it can be said that social factors in the UK are critically strong for enhancing the business of JP Morgan Finance and Investment in the markets.

As far as technological factors are considered, it can be said the UK government has allocated considerable budget for making the organizations to acquire new technology. For this reason, JP Morgan Finance and Investment need to consider technology for installing safety features to databases, information system and many others (Benner and Tushman, 2002). Along with this, technology is also used in the organization for promotion purposes.

Pollution is one of the biggest environmental factors for JP Morgan Finance and Investment in the UK. It is found that due to pollution and other environmental factors people are becoming susceptive to various diseases. It is found that in the year 2017, 42000 people in the country due to certain diseases. Organisations should consider such environmental in corporate social responsibilities for enhancing their effectiveness in business markets.

Legal factors are responsible for affecting the functionality of an organization (Nijssen, 2004). It is found that due to BREXIT, 90% of the countries in EU changed their trade policies, which resulted in the enhancement of customs duties, trade taxes, and many others.

It can be concluded from the above task that various factors in the macro environment of JP Morgan Finance and Investment include political, economic, social, technological, environmental and legal factors. These factors have great effects on the business of the organization.

Task 4
Introduction

SWOT is one of the most effective analytical tools in business management, which is helpful in determining various strengths, weaknesses, opportunities, and threats that can affect the business of an organization (Sanchez, 2011). Along with this, SWOT analysis is also effective in formulating new strategies and enhancing the excellence of an organization in its business markets.

According to organizational management theory, strengths can be defined as the attributes and qualities that the notice in bringing competitive advantage to an organization (Palmer & Hartley, 2010). It is found that there are many strengthening factors associated with JP Morgan Finance and Investment. The organization has nearly 4400 offices around the world. Along with this, it is also found that the organization has very high human capital and also has a number of physical as well as financial assets.

Organisational development theory explains that weaknesses are the vulnerabilities that can affect the business of an organization negatively. The study reveals that there are certain weaknesses associated with JP Morgan Finance and Investment that can reduce the productivity and profitability of the organization in its business markets. These weaknesses include exhibiting the same approaches at different offices in the world.

Opportunities are the chances that can be acquired by an organization to enhance its business operations and attaining more profitability and productivity (Worthington & Briton, 2015). There is a number of opportunities, which can be obtained by JP Morgan Finance and Investment in its business markets. A large number of offices and reputed status of the company can be helpful in targeting new markets. Along with this, it can also be understood that the organization can comply with the policies set by other countries. This way, management in JP Morgan Finance and Investment can compensate for the reduction in profitability due to BREXIT.

According to the theory of organizational management, threats are the situations and scenarios, which can affect the profitability and functionality of an organization in a negative manner (Sanchez, 2011). There are various threats, which can affect the business of JP Morgan Finance and Investment in domestic as well as international markets. Economic vulnerabilities occurring because of BREXIT referendum can harm the profitability of JP Morgan Finance and Investment. Not only this, but the business of the organization can also be affected by the competitive rivalry. Effective approaches considered by other organizations can reduce the profitability of JP Morgan Finance and Investment by making its customers switching the organization.

For this reason, it becomes essential for the managers in JP Morgan Finance and Investment to consider various strengths, weaknesses, opportunities, and threats, which are interrelated with PESTLE factors (Sanchez, 2011). Threats of BREXIT are political, economic and legal factors. Along with this, the strengths of human capital are social factors and many others. Notably, the current strengths and weaknesses of the business are among the major attributes of the internal business operations while the PESTLE factors tend to be seen as the external business environment in which the business conducting its operations altogether. The internal business operational attributes will serve as the key foundation for the business to be able to sustain in the market despite of all the political, economic, social and the legal business environment altogether. This mainly help the business to be able to leverage the potential benefits that are associated with the overall operations of the business. The company i.e. JP Morgan Finance and Investment in this context needs to ensure that it maximises its strengths and reduce its weaknesses towards assuring that the external challenges can be dealt with in a significant manner in the long run. This aspect of internal business attributes will further be reflected upon the internal decision making of the business altogether.

It is also found that internal factors such as bargaining power of buyers, and suppliers, threats of new entrant and substitution and competitive rivalry can also affect the business of JP Morgan Finance and Investment by bringing differences in operating income and affecting the sustainability and productivity (Gardetti and Pedersen, 2015).

Conclusion

It can be concluded that JP Morgan Finance and Investment is required to consider various strengths, weaknesses, opportunities, and threats along with micro or internal factors to enhance its completive positioning in the business markets.

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