1. Level 2 Diploma in Business Administration
Unit 2 – Understand employer organisations
1.1 The difference between organisational sectors

2. Understand employer organisations
This presentation will help you to understand different types of organisations and the sector they work in.
This will improve your knowledge about your own and other employer organisations
This presentation should be used alongside the activities listed throughout.
Ask your assessor if you are unsure about anything.

3. Understand employer organisations
Each organisation is different, however they all fall into one of three categories.
The three main types of employer organisations are:
Private sector organisations
Public sector organisations
Voluntary or ‘Not for profit’ organisations

4. Understand employer organisations
What does this mean?
How are they different from each other?
Which one do I work for?

5. Understand employer organisations
Private sector organisations
Are owned and controlled by individuals
Exist to make a profit
Trade in a competitive market
Examples:

6. Understand employer organisations
Not all private organisations are multi-national or global companies. Small organisations are in the private sector if they fit the criteria on the previous slide.

7. Understand employer organisations
A private sector organisation can be:
A sole trader
A partnership
A limited company
A public limited company
Read more here:

8. Understand employer organisations
Public sector organisations
Are funded mainly by the government
Provide services to the public
Do not exist to make a profit.
Are financed through public and business taxes.

9. Understand employer organisations
Public sector organisations
Examples:
Education: schools; colleges and other training providers
National Health Service: hospitals; nursing homes; GP practices
Local councils
Police

10. Understand employer organisations
Voluntary sector organisations
Are independent of government
Are motivated by the desire to achieve social goals (for example, improving public welfare or the environment)
reinvest surplus monies rather than create profit
Benefit the public
Can include local community projects and groups.

11. Understand employer organisations
Voluntary sector organisations –
Examples:
Charities: Oxfam; Red Cross
Trusts: Housing Associations
Local community interest organisations: Neighbourhood Watch Schemes
Societies: local tennis club; uniformed organisations (scouts and guides, theatre groups).

12. Understand employer organisations
Voluntary organisations are not just for volunteers who give their time for free. Voluntary organisations still employ paid staff. A salary within a voluntary organisation can usually match that of other sectors.

13. Understand employer organisations
Which sector do you work in?
To find this out, think about:
Does my organisation make a profit?
Who pays for my organisation to keep going?
Who does it benefit?
Does it sell services and products?
Does it provide a public service?

14. Understand employer organisations
Further reading:
This activity will cover Assessment Criteria 1.1