Organization Types

Different types and purposes of organizations

There are 3 types of organization in a country. Public, private and voluntary. An organization is basically a set of working people by which they can achieve their goal. The types of organization are given below:

Public Organizations: These organizations are operated by government. So that means their owner is government. The main target of these kind of organization is serving the people. These are one kind of non-profit organization. And if any profit comes then it spends for the development of country. Their main resource of funding is tax and vat from the public as they runs the organizations for development of people and country. They also collect their financial resources from government other sectors such as fees, allocation etc. There are many people works on public organization. They are known as Govt. Employee.

Examples: examples of government organizations are transport service, air service, rail service, police, fire service, bank service etc.

Private Organizations: Private organizations are runs by individual or more persons. Those are non-governmental organization. These types of organizations main target is to earning profit. So that’s why they sell their products at maximum amounts and earns as much as profit they can. Basically they give better products and services then public organizations. They collect their funding by personally or selling share. There are larger amount of employees works in a private organization.

Examples: The examples of private organization are famous car brands Toyota, BMW, Tata. Also electronic companies like Nokia, Samsung and Hitachi etc. Computer and mobile operating system Microsoft is also a private organization.

Voluntary Sectors: Some organizations are nor government neither non-government. They are voluntary sectors. Basically these sectors are non-profitable. When some people of an individual society runs a business for the purpose of developing their society then it is called voluntary sectors. These sectors funding are given by people of that society. This kind of business was invented by Dr. Muhammad Yunus. This also known as ‘Social Business’.

Examples: Many charities and trusts are the examples of these kind of business.

Range of different types of organizations

Previously we have known that there are 3 categories of business organization. These are public, private and voluntary. Each of them have several classification. They are written below:

Private Organization: There are many kinds of private organization based on ownership. The size and scope of range are given below:

• Sole Proprietorship: The business which owns by only one person and the owner’s decision is the final decision then it is sole proprietorship. In this business the owner alone operate the business or sometimes he/she appoints employees for the work. The owner alone collects the capital and the profit or loss also carries the owner alone. In UK 90% of business are sole proprietorship. The owner just only needs of tread license to start the business. As the owner only takes the decision so decision making is fast in these business. But there are also some problem in this kind of business. As he or she has to make the decision alone so it becomes tough for him/her. The size of the business are small and a small amount of funding is required to start this kind of business. Also funding, risk, and liability also needs to bear alone in this business. So this is an important issue for this business. A pharmacy shop, stationary shop, cycle repairing shop are the example of sole proprietorship.

• Partnership Business: When two or more people start a business by based on an agreement then it is called partnership business. United Kingdom government follows the “partnership act 1890”. According to UK partnership act 1890 “Partnership is the relation which subsists between persons carrying on a business in common with a view of profit.” In this kind of business agreement is the main foundation. The agreement can be written or oral. The benefit of this business no one needs to bear the risk and loss alone. And these kind of business has more profit and they are larger than sole business. There are also some disadvantages of these business. As there are many owners so decision making process is too much lengthy as there might be an argument and needs to choose the best decision for the organization.
• Corporation: It is a legal business entity which is individual proprietary and from the owner. Corporation has its individual rules and regulations. It is a legal person who can make contract, borrow loan, sue or sued and also can appoint employee. The government of United Kingdom follows the “Company act 2006”. They collect their funding by selling share. Corporation business has some advantages. They are limited liability is one of them. Also huge amount of funding can be earned by selling share. Some examples of corporation business are- Google, Amazon, and Apple etc.
• Limited Company: The companies which are established with limited liabilities are limited company. There are two kinds of limited company available. One is “public limited”. They sell their share to the mass people. Basically they start selling share from 2 to the highest amount of share they can sell. And the other one is “private limited”. They do all their work privately and sell share privately to limited persons. They sell share from 7 to 50 people.

Public Organization: Government has established some business for mass people. Those business are known as public organization. Their main resource of finance is tax which they take from public. These business are run for public welfare. They try to give the best service by taking lowest amount of charge. The government can make any private organization to public if they wish. Though they take lowest charge but their services are not so good. Public University, Public transport, governmental bank etc. are the examples of public organization.

Voluntary: When some people run an organization for social development then it is voluntary. They do not take any payment or salary. This kind of organizations are non-profitable organization. In UK there are many trustee, church, mosques. Those are the example of voluntary.