An comprehensive guide to the purpose of different working environments and the benefits and disadvantages of them all. We also look at the importance of maintaining equality and diversity in the workplace, organisational standards and standards of security.

1. Customer Service

2. Unit 4
Principles of Working
in a Business Environment

3. It is important in a business environment to understand the
purpose and structure of different business organisations. There
are overarching business principles which are common to all
businesses. These include the requirements for confidentiality
and security in a business especially in relation to data protection
requirements. Businesses need to know how to support equality
and diversity within their workplace. Environmental sustainability
is an increasingly important issue in business organisations and
businesses need to consider how best to contribute to this. These
business principles impact on everyone working in a business
environment.
Purposes of Different Types of Business
Organisations

4. Purposes of Different Types of Business
Organisations
Main types of business organisations:
Sole trader
Partnership
Private Limited Company (“Ltd”)
Public Limited Company (“plc”)
Co-operatives
Franchises
Public sector

5. Purposes of Different Types of Business
Organisations
Sole Traders: A sole trader is a business that is owned by one person. It may
have one or more employees. The most common form of ownership in the UK
often succeed – why?
• ‰Can offer specialist services to customers
• ‰Can be sensitive to the needs of customers – since they are closer to the
• customer and react more quickly
• ‰Can cater for the needs of local people – a small business in a local area
can build up a following in the community due to trust

6. Purposes of Different Types of Business
Organisations
Operating as a sole trader
ADVANTAGES
‰ Total control of business by owner
‰ Cheap to start up
‰ Keep all profit
DISADVANTAGES
‰ Unlimited liability
‰ Difficult to raise finance
‰ May be difficult to specialise or enjoy economies of scale
‰ Problem with continuity if sole trader retires or dies

7. Purposes of Different Types of Business
Organisations
Sole trader forming a partnership
Spreads risk across more people
Partner may bring money and resources to business E.g.
better premises to work from
Partner may bring other skills and ideas to business
Increased credibility with potential customers and suppliers –
who may see dealing with business as less risky

8. Purposes of Different Types of Business
Organisations
Partnership
Business where there are two or more owners of the enterprise.
Most partnerships have between two and twenty members though
there are examples like the major accountancy firms where there
are hundreds of partners. A partner is normally set up using a Deed
of Partnership. This contains:
‰Amount of capital each partner should provide, ‰How profits or
losses should be divided
‰How many votes each partner has (usually based on proportion of
capital provided)
‰Rules on how take on new partners, ‰How the partnership is
brought to an end, or how a partner leaves

9. Purposes of Different Types of Business
Organisations
Advantages of Partnership
Spreads the risk across more people, so if the business gets into
difficulty then the are more people to share the burden of debt
Partner may bring money and resources to the business
Partner may bring other skills and ideas to the business,
complementing the work already done by the original partner
Increased credibility with potential customers and suppliers – who may
see dealing with the business as less risky than trading with just a sole
trader

10. Disadvantages of a Partnership
Have to share profits
Less control of business for individual
Disputes over workload
Problems if partners disagree over of direction of business

11. Purposes of Different Types of Business
Organisations
Limited company
Business owned by shareholders, Run by directors (who may also be
shareholders
Liability is limited (important)
Types of business organisations:
private sector organisations, e.g. sole trader, partnership, companies; public
sector organisations, e.g. Local Councils, National Health Service (NHS),
government departments
Purpose:
private sector, e.g. make a profit, owned by private individuals; public sector,
e.g. provide public services, controlled by the government

12. Important for a Business to be Secure
The Value of Information
To understand the value of information, let’s start by examining some typical information held by
both businesses and individuals. At the very least, businesses will hold sensitive information on
their employees, salary information, financial results, and business plans for the year ahead. They
may also hold trade secrets, research and other information that gives them a competitive edge.
Individuals usually hold sensitive personal information on their home computers and typically
perform online functions such as banking, shopping and social networking; sharing their sensitive
information with others over the internet. If information should fall into the wrong hands, it can
wreck lives, bring down businesses and even be used to commit harm. Quite often, ensuring that
information is appropriately protected is both a business and legal requirement. In addition,
taking steps to protect your own personal information is a matter of privacy retention and will
help prevent identity theft.
Financial security: definition (consistent income, controlling debts and spending, savings)
Importance of business financial security: reasons, e.g. continue in business, pay staff and
suppliers, pay debts, expand the business

13. Purpose of an Organisational Chart
The main purpose of an organisation chart is to show the hierarchical
structure, or chain of command, within an organisation. It is a useful
management tool that helps organise the workplace. In general, the charts
place the top official or department at the head of the chart, with others
following below in levels. An organisation chart, or org chart, visually divides
any organisation into different levels of authority.
Organisational chart: hierarchy, departments, job roles
Purpose: e.g. shows lines of responsibilities, shows the different departments
and roles within departments, shows relationships between departments
and individuals

14. The Role of the Main Functional Areas of
Business Organisations
All businesses must carry out a number of functions to ensure the business runs
smoothly. These functions also link to the aims and objectives of the business and
what it wants to achieve. In a small business, all these jobs may be done by a few
people. In a large organisation, people specialise in different tasks. In a large
organisation, the functional areas in which people work are divided into different
departments. Each carries out the tasks that relate to its own area. The purpose of
functional areas is to ensure that the vital business activities are carried out promptly
and efficiently. This is essential if the business is to achieve its aims and objectives. In
addition, specific areas will support certain types of aims and objectives.
Sales and marketing will be involved in achieving targets linked to developing new
markets or increasing sales.
R & D as well as production will be involved in developing new products. Some ideas
and improvements may come from customer feedback received by sales or customer
services, or from market research done by marketing.

15. The Role of the Main Functional Areas of
Business Organisations
ICT will be responsible for the organisation’s internal and external electronic
communications including email, the organisation’s website and the intranet.
Good communications are vital so that functional areas can work together
effectively.
Finance will be expected to monitor and support aims and objectives linked
to keeping costs low or reducing them, in order to improve or maximise
profitability.
Human Resource: role, e.g. recruiting and selecting new staff, training and
development
Administration role, e.g. document production, document rétention, mail
services
Distribution and Warehousing: role, e.g. storing raw materials, arranging
delivery of goods

16. Environmental Sustainability
Environmental sustainability involves making decisions and taking action that
are in the interests of protecting the natural world, with particular emphasis
on preserving the capability of the environment to support human life. It is
an important topic at the present time, as people are realising the full impact
that businesses and individuals can have on the environment.
Environmental sustainability is about making responsible decisions that will
reduce your business' negative impact on the environment. It is not simply
about reducing the amount of waste you produce or using less energy, but is
concerned with developing processes that will lead to businesses becoming
completely sustainable in the future.
Environmental sustainability: definition, making responsible decisions and
implementing appropriate procedures

17. Keep Waste to a Minimum
Keeping waste to a minimum in the business environment serves the same purposes it
does everywhere else: it decreases the amount of waste a business contributes to the
environment (this can include solid waste, wastewater, and carbon emissions).
Reducing waste is key to minimizing a business's environmental impact by reducing air
and water pollution and limiting the amount of material that ends up in landfills.
Reducing waste can also serve to save a business money. By enacting plans that
conserve materials, they will inevitably cut down on the amount of materials they need
to purchase. Likewise, any attempt to reduce carbon emissions inevitably relies on a
reduction of energy use, which means less money spent on electricity and fuel.
The advantage of applying waste minimizing principles in a business environment is
that it impacts a larger number of people than would applying them in one's home.
Such actions can also serve to improve a business's image. Keeping waste to a
minimum: e.g. cost effective, reduces the impact of the individual and the business on
the environment, improves business image

18. Practices That May be Used to Minimise
Waste in a Business Environment
Can mean wasting time, energy or office equipment. Time = internet, people doing personal tasks,
inter-office socialising, not being productive because of poor management directions, lack of
knowledge regarding workload and work process. Office supplies = theft, excessive use of printing
when not needed, personal use of office equipment by employees, people not proof reading or
checking documents for mistakes. Energy = leaving lights and PC’s turned on at night when no one
is there, keeping heat or air conditioning turned too high or low, inefficient use of company
vehicles.
Keep the faxes, printers and copiers in good working order so that they produce good copies and
don’t ‘eat’ copies and jam. Order good quality paper that is the recommended weight for the
office machines. Eliminate the conformation page of the fax by changing the settings. Periodically
ask everyone to purge their desks of excess pens, stickers, sticky notes and other supplies. Order a
reasonable amount of supplies for a shot period so there is not a feeling of oversupply and that
usage doesn’t matter. Set expectations that people do not take supplies home with them, or use
printers/copiers for excessive amounts. Organise supplies and remove those that are out of date.
Request that people ask for supplies from a specific person by a deadline. Turning off equipment
and lights will also help reduce waste.

19. Practices That May be Used to Minimise
Waste in a Business Environment
Consumables and resources: practices, e.g. recycling, only
printing documents when necessary, printing double-sided
documents, use refillable ink cartridges, reduce printing of
graphic and images where possible
Facilities and equipment: practices, e.g. turning off lights and
machines when not in use, turning off heat or air conditioning,
follow instructions for using machinery and equipment, using
energy saving stand-by features on office equipment

20. Standard Procedures to be Followed When
Recycling and Disposing of Waste
Spare or waste paper can be re-used as note paper, and care to be
taken to only print necessary documents. A general procedure for
recycling is:
1- Organisation collects, stores and sorts recyclable materials
2- Materials are collected by a recycling organisation where it is taken
to a factory for further sorting and eventually taken to a factory to be
recycled and re-made into a new product.
Within some companies they may have separate bins for recyclable
materials and a collector that empties those bins.
Recycling and disposing of waste: separate recyclable materials e.g.
glass, paper, from other waste; disposing of waste in correct place;
safety aspects of disposing of hazardous waste

21. Defining the terms Equality and Diversity
Equality is ensuring individuals or groups of individuals are
treated fairly and equally and no less favourably, specific to their
needs, including areas of race, gender, disability, religion or
belief, sexual orientation and age.
Promoting equality should remove discrimination in all of the
aforementioned areas. Bullying, harassment or victimization are
also considered as equality and diversity issues.

22. Defining of the Terms Equality and
Diversity
Diversity means valuing different individuals regardless of race, heritage,
customs, beliefs, physical appearance, mental capabilities, etc
Diversity should be respected and valued because nobody is completely
the same as anyone else. Everyone in the workplace has to be treated
equally because everyone has something to offer and everyone has a
strong factor/skill that they can contribute to the company. They enrich
a society because they allow people to experience different thinking
processes, to see that there is more than one way of approaching issues
or living one's life.
Diversity brings different views and opinions to the workplace, it helps
shape many things like government, and cultural aspects including food,
clothing and techniques to build and create things.

23. Supporting Equality and Diversity in the
Work Environment
Equality and diversity exist to ensure an inclusive workplace, one where
‘difference’ is never an obstacle to getting a job or progressing in your
career.
In the UK, practises and procedures are in place to ensure all workers are
treated equally and given the same opportunities regardless of their age,
race, sexuality, gender, disability or culture – or indeed anything else that
could be discriminated against.
Supporting equality and diversity in the workplace: importance to
include, shows respect for all people regardless of their personal
characteristics; to comply with legislation (Equality Act 2010); improve
team working and output; reduces conflict in the work environment.

24. Ways of Behaving That Show Sensitivity
and Respect for Other People
One should treat others as one would like others to treat oneself
One should not treat others in ways that one would not like to be
treated
You can treat other people well by being empathetic and relating
to the way they feel about certain issues. Listen to them often.
Treat everyone the way you would like them to treat you. Analyse
people’s needs and try to meet those needs. If they do not feel
comfortable, ask to see what you can do for them to make them
more comfortable.
I try to imagine myself in that persons shoes and think about how I
would feel if I were that person and then I can usually figure out
how that person would like to be treated. If you are kind and
courteous you will be fine.

25. Ways of Behaving That Show Sensitivity
and Respect for Other People
There are always going to be people that irritate, annoy, and frustrate you. But you
have to remember to be considerate of why that person behaves that way.
1. Before you judge someone and label them with some quality or character, think
about how he/she feels.
2. Don't put someone through that kind of pain / situation if you wouldn't want to
be put through yourself.
3. Try to speak to them more often and see how they act
4. We have to always remember, being sensitive to others feelings means we are
accepting what they like and dislike. We also give respect to their beliefs.
Showing sensitivity and respect: ways, e.g. showing respect for the
background, values, beliefs and custom of colleagues; being tolerant and open-
minded; being aware of other people's needs; using non-discriminatory language.

26. Legal Requirements Relating to Equality and
Diversity
The new Equality Act came into force on 1 October 2010. The
Equality Act brings together over 116 separate pieces of legislation
into one single Act. Combined, they make up a new Act that will
provide a legal framework to protect the rights of individuals and
advance equality of opportunity for all.

27. Legal Requirements Relating to Equality and
Diversity
Equality Act 2010
The Act will simplify, strengthen and harmonise the current legislation to
provides a new discrimination law which protects individuals from unfair
treatment and promotes a fair and more equal society. The nine main pieces of
legislation that have merged are:
the Equal Pay Act 1970
the Sex Discrimination Act 1975
the Race Relations Act 1976
the Disability Discrimination Act 1995
the Employment Equality (Religion or Belief) Regulations 2003
the Employment Equality (Sexual Orientation) Regulations 2003
the Employment Equality (Age) Regulations 2006
the Equality Act 2006, Part 2
the Equality Act (Sexual Orientation) Regulations 2007

28. Legal Requirements Relating to Equality and
Diversity
Age It is unlawful for age to be the cause of less favourable treatment in a workplace or
in vocational training, unless there is an objective justification for doing so. Where this
is referred to, it refers to a person belonging to a particular age (e.g. 32 year olds) or
range of ages (e.g. 18 - 30 year olds).
Disability If one has a physical or mental impairment, that person has specific rights that
protect them against discrimination. Employers and service providers are obliged to
make relevant adjustments. Under certain circumstances this protection also extends to
their carers[1] A person has a disability if s/he has a physical or mental impairment
which has a substantial and long-term adverse effect on that person's ability to carry
out normal day-to-day activities.
Gender reassignment T he process of transitioning from one gender to another.
Marriage and civil partnership Marriage is defined as a 'union between a man and a
woman'. Same-sex couples can have their relationships legally recognised as 'civil
partnerships'. Civil partners must be treated the same as married couples on a wide
range of legal matters.
Pregnancy and maternity Pregnancy is the condition of being pregnant or expecting a
baby. Maternity refers to the period after the birth, and is linked to maternity leave in
the employment context. In the non-work context, protection against maternity
discrimination is for 26 weeks after giving birth, and this includes treating a woman
unfavourably because she is breastfeeding.

29. Legal Requirements Relating to Equality and
Diversity
Race Refers to the protected characteristic of Race. It refers to a group of
people defined by their race, colour, and nationality (including citizenship)
ethnic or national origins. Wherever one was born, wherever their parents
came from, whatever the colour of their skin, they have a right to be treated
fairly and be protected against racial discrimination and prejudice.
Religion and belief Religion has the meaning usually given to it but belief
includes religious and philosophical beliefs including lack of belief (e.g.
Atheism). Generally, a belief should affect your life choices or the way you live
for it to be included in the definition. Religion or belief should not interfere
with anybody’s right to be treated fairly at work, at school, in shops or while
accessing public services such as health care and housing.
Sex A man or a woman.
Sexual orientation Whether a person's sexual attraction is towards their own
sex, the opposite sex or to both sexes. Whether one is straight, gay, lesbian or
bisexual should not put them at a disadvantage. The law protects the citizen
against discrimination in the workplace, including harassment, on grounds of
sexual orientation.

30. Importance of Maintaining Organisational
Standards of Confidentiality
Confidentiality in Workplace
Confidentiality is a very important aspect for a lot of varied reasons. All the
data relative to recruitment, compensation, and management of
employees is highly sensitive. So if these reach the hands of the wrong
people, it can be misused to commit fraud and other violations.
Confidentiality maintenance also relates to professionalism of the
organisation. So employees must make sure they maintain a professional
attitude and not share / disclose any sensitive information without
authorisation from the organisation.

31. Importance of Maintaining Organisational
Standards of Confidentiality
Confidentiality: types of confidential information, e.g. employee
personal contact details, customers personal contact detail and
payment information, business sensitive information
Maintaining organisational standards of confidentiality:
importance, e.g. to meet data protection legislation
requirements; to protect business sensitive information from
competitors, customer trust

32. Confidentiality Requirements Affect the
Workplace
Every organisation should be careful of how they handle and
respect data that passes through their hands. Data information
flowing in and out of the company can be any of the materials
below
• E-mails
• Letters and post
• Paper files
• Course documentation
• Verbal
• Memory sticks & discs
• Computer files
• Refuse and disposal

33. Confidentiality Requirements Affect the
Workplace
The following may be considered sensitive material in that it carries
personal details of an individual:
• Curriculum Vitae of trainers & all staff
• Financial information of customers and trainers and staff
• Health status information
• Verbal discussions regarding others/organisations on the
phone, in public places, in training venues, with inappropriate
others

34. Confidentiality Requirements Affect the
Workplace
How confidentiality requirements affect the workplace. For
example:
Procedures to secure personal information of staff and
customers, password
Protected access to files and computer systems, secure file
transfer systems

35. Importance of Maintaining Organisational
Standards of Security
Information / Data security means protecting all the data and information
from unauthorised access. Also the information systems where the data
or information is stored have to be protected from unauthorised access,
use or disclosure. Also one needs to be careful not to disrupt the system,
modify or destruct data or information as they are highly sensitive and
cause disastrous effects for the organisation and the individual related to
it. These type of data are confidential and used by Governments,
hospitals, military and other highly sensitive and secure organisations.
Information security is a business requirement and also a legal
requirement.

36. Importance of Maintaining Organisational
Standards of Security
Security: including information, people, premises and equipment
Maintaining organisational standards of security: importance,
e.g.
protect wellbeing of staff and customers, protect premises and
equipment from theft and damage

37. How Security Requirements Affect the
Workplace
Security are the key aspects for an organisation. So an organisation must make sure
that it preserves these along with integrity. Any information even if it is a little one, if
lost can lead to the non-existence of the organisation.
The requirements for security are:
An organisation has to be ready at all times to give access to the systems that store,
process and deliver information to the right people at the right time.
All companies have and should have their own policies and procedures regarding
security. All employees must abide by these policies and procedures. The Data
Protection Act, Human Rights Act and Consumer Rights Acts cover these areas.
entry and exit procedures
CCTV monitoring systems
restricted access to particular
areas of premises