Differences Between Private Sector And Voluntary Sector

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1. Understand organisational structures 1.1 Explain the differences between the private sector, public sector and voluntary sector Private Sector Businesses and industries that are not owned or controlled by the Government. Private Sector organisations operate privately to make a profit with income generated from the sale of their products or services. Although many private sector firms are owned and controlled by individuals, many are owned by groups of people; for example, companies may be owned by shareholders, who have invested in that company. The Private Sector includes:- • Sole trader - an individual who owns and runs the business him or herself. • Partnership - A partnership is where two or more people come together to operate…show more content…
They are usually controlled by a directors or a management committee. The Voluntary Sector is often referred to as the Third Sector or ‘Not for Profit’ Sector. Whist they do not exist to provide profit for shareholders, they need to generate income. The Voluntary Sector includes:- • Charities – Oxfam, Red Cross, YMCA, Women’s Royal Voluntary Service • Trusts – Local Housing Associations • Local community organisations – Neighbourhood Watch Schemes • Societies/Clubs – Local sports clubs, Scouts, Guides 1.2 Explain the functions of different organisational structures Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by: • Functions - activities such as customer service, marketing, operations, finance or IT • Location - where regional divisions of the business take responsibility for a specific function or particular products, whether locally, nationally or internationally • Product or services - where the business is divided into the particular products made or services provided All organisations have employees working at different levels of responsibility. At the bottom, a business depends on its operatives to produce the products or services. Team leaders often perform the day-to-day management role, with operational managers setting direction and strategy for the business as a whole. The number of employees in each level will depend on the business’
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