structure, stated simply, defines a specific pyramid within an organization,
and businesses of all shapes and sizes use it heavily. A successful
organizational structure defines each employee’s job and how it fits within the
overall system. This structuring provides a company with a visual
representation of how it’s shaped and how it can best move forward in achieving
its goals. Organizational structures are normally illustrated in some sort of
chart or diagram. Organizations need a structure to enable the business to
operate effectively. As a business grows, the structure will evolve but needs
to be considered carefully so that all jobs that need doing are identified and
allocated, the main lines of communication are established not to forget the
levels of responsibilities are identified and allocated. Organizational
structure is particularly important for decision making. Most companies either
have a hierarchical or flat organizational structure. Small companies usually
use a flat organizational structure. For example, a manager can report directly
to the president instead of a director. Flat structures enable small companies
to make quicker decisions.
structures are also used to help in achieving goals and results. Organizational
structure allows for the chain of command. Department leaders are in charge of
delegating tasks and projects to subordinates so the department can meet
project deadlines, where everyone in the department works toward a common goal.
Without a formal organizational structure, employees may find it difficult to
know who they officially report to in different situations, and it may become
unclear exactly who has the final responsibility for what.
are four different types of organizational structure:
As the name suggests, this structure shows a hierarchy of
responsibility and authority showing who is for what and who is responsible for
what and who has authority to make decisions regarding business operations.
This structure clearly shows there is one person with overall responsibility
and authority for the entire business and everyone else has a clear
understanding of their position in the organization. The store managers make most
decisions, and authority must be gained from several layers up before taking
action. Information flows are generally one way from the top down.
flat organization refers to an organization structure with few or no levels of
management between management and staff level employees. Flat structures may
operate with less bureaucracy and therefore decision making can be faster.
However, there are likely to be fewer opportunities for promotion or
progression than in other structures.
The matrix type of
structure is complex. It brings together teams of people depending on their
abilities to work on specific projects. These teams can be temporary
or permanent depending on the tasks they are asked to complete. Each team
member can find himself/herself with two project managers.
Holarctic organization structures offers a holistic approach to running a
business where responsibility and authority are distributed amongst the work
has a hierarchical structure reflecting the large size of the organization. A
hierarchical organizational structure has numerous layers of management between
the directors and the bottom or front-line employees. The chain of command runs
from the top to the bottom down. The larger the organization is, the taller the
hierarchy grows. As the number of decision-making levels increases, it takes longer
for information to get pass down to employees on the bottom line. As
communications pass from manager to minor it may be time consuming and
information could also be hard top spread all around the organization, whereas
communication is the key to a successful business. Due to how slow communication processes might
be, decision-making is inactive as well. Each level must accept the
information, engage with it and then act on it to move it to the next level. If
multiple layers of authority need to give approvals, each decision takes longer
to be made and even longer to be applicate.
Oxfam’s has a flat organization structure unlike Tesco, as
there aren’t much of people working and organizing the company. Oxfam’s
organization structure has relatively few layers of management. Different to
Tesco’s structure, it has a short chain of command and a wide span of control.
Span of control, originally a military term, refers to the number of
subordinates that directly report to that manager. In a flat structure, more
subordinates report to a single manager. Due to the reduced number of
management layers. Oxfam’s organization structure is a geographical as they
work the world with many countries to try achieve the goal
Areas in business
Some businesses are small enough that all
organization and decision making can be done by one person in the company. When
the business gets big, the work will need to be shared into different
departments. Employees are arranged into department specializing in certain
tasks. This is because it cannot be done by one person, the business need to be
organized in order to succeed. All businesses must carry out a number of
functions to ensure the business runs smoothly. These functions link together
to achieve the overall aims and objectives of the business. This means good
A brief definition of each
functional areas is:
The human resources of a business are
its employees. Many organizations look after their staff on the basis that if
they are well trained and committed to the aims of the business, the
organization is more likely to be successful.HR is responsible for recruiting
new employees and ensuring that each vacancy is filled by the best person for
the job. This is important because the recruitment process is expensive and
time-consuming. Hiring the wrong person can be expensive and cause problems
both for the individual and the company.
Research and development (R)
This department is concerned with new
product developments as well as improvements to existing products. It also
involves product design as well.
aim to work with designers to develop a usable product that can be manufactured
at a reasonable cost, sold at a competitive price and is safe to use.
Sales is a key function for all businesses. It is pointless
having excellent products or services if no one buys them. For that reason,
most businesses have sales targets as part of their aims and objectives.
Meeting these is the responsibility of the sales department.
Marketing is all about identifying and meeting customer
needs. Many businesses consider this to be really important. A way to
understand marketing is through the marketing mix which consists of four Ps.
Product -Who are the customers? What do they want to buy? Place – How can they
distribute our products? Price – How much should they charge? Promotion – How can the tell people
about the products?
Production and quality
Production refers to the manufacture of goods. Production
staff must ensure that goods are produced on time and are of the right quality.
All businesses must look after customers or clients who have
an enquiry, concern or complaint. Many customers have high expectation. When
people contact a business they expect a rapid, polite and knowledgeable
response. For this reason, many businesses have customer service department. Where trained staff handle enquiries and
complaints positively and professionally.
and Communication Technology (ICT)
The Information and communication
technology function is one of the most useful department of all business. The
IT department’s role is to ensure the business’s data are store accurately. ICT
is also responsible for system security. Making sure that only authorized users
have access to the system, protecting the system against viruses and hackers
and ensuring there is a full back-up system to restore serious data in an
emergency is vitally important.
Administration is a support required by all businesses. The duty of the administration department depends
on the company’s status. The main job responsibility of an administrator is to
ensure the efficient performance of all departments in an organization. They
act as a connecting link between the management and the employees. They provide
motivation to the work force and make them realize the goals of the
the functional areas of a business are not appropriately structured to match
the businesses image then efficient operations will be affected. As a large
company Tesco, has to engage with the activities of the business in order to
reach their goal as a business. To ensure it done effectively they divided the
business into different department so responsibilities are widely spread. The
finance department of Tesco is placed to ensure all data and financial
activities are carry out professionally and in the period time given. In order
to maintain great relationships with suppliers, making sure that everyone gets
paid on time is a vital role. The key role of the finance department includes
keeping an eye on opportunities to save money. Payroll is a serious function of the finance department and
includes making sure all employees are paid accurately and timely. In addition,
proper tax is assessed and tax payments are on time with government agencies.
The employees of the finance department are specifically trained to work on the
tasks they deal with. Tesco needs the
right individuals to contribute to the business. Individuals who are
specialized in certain feature of the business in a way that they can help the
organization become successful. To ensure they recruit the right individual for
the right job they have a Human Resource department. The HR department role in
the organizations is to organize people so that they can effectively work. The
say the people make the organization, to give the company a good image they
have to recruit the right individual as they will build the company’s
reputation. The HR includes managing recruiting and hiring employees, managing
employee benefits and suggesting employee training and development plans. In
this way, HR professionals are specialists they advise managers on many issues
related to employees and how they help the organization achieve its goals. For
Tesco to determine the customer’s needs and identify the target market for
certain products. They have a Marketing department. The Marketing Department
plays a vital role in promoting the business of Tesco. It helps as the face of
the company, marketing departments carry out promotional strategies for
products and services to find the suitable products/services for the right
target market. Tesco needs to identify the products and services that will meet
their customer’s needs, in order to make sales and gain customers. By having a
marketing Tesco is able to fill the gap in the market, and build a unique
selling point to again sales, which will help them make more sale and achieve
their overall goals. What is a business without a customer service department?
Tesco’s customer’s service are the image of the business. They form the
reputation of the entire business. In addition, they deal with and help resolve
any customer enquiries and complaints. For instance, a customer service staff may
assist you in opening an account or help you to resolve a problem if you cannot
find certain products or if your order never arrived. This is so the business
can have a good image and build a strong branding recognition to attract more
customers who will then level up the sales of the business.
Oxfam based their organizational structures
on various functional areas, creating departments around these functions and setting
responsibilities according to employees’ job titles and experience. The HR
department is responsible for hiring employees and ensuring that they get the
proper training to perform their jobs. In order words, the HR needs to ensure
the employees/volunteers of Oxfam are specifically qualified to work with the
organization. They will need to have some knowledge on the country they are
based in, and more in what they will be doing in the country if they have been
transferred aboard. As we know Oxfam is a global charity, it is also the HR’s
role to deal with international employees/volunteers by providing them
accommodations. The marketing department of
Oxfam provides them with information such as which country they can go work in
what is needed in the countries and etc. The finance department is the part of
the organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and
controlling its company’s finances. The finance department also usually
produces the company’s financial statements.
Aims and objectives of Tesco
An aim is where the business wants to go in the future, its goals.
It is a statement of purpose, e.g. we want to grow the business into Europe. Objectives give
the business a clearly defined target. Plans can then be made to achieve these
targets. This can motivate the employees. It also enables the business to measure
the progress towards to its stated aims.
aims are to expand on the number of stores they have in the UK and
other countries in which they operate, also the number of services they provide
in the UK. They wish to improve the online service they provide to customers. As
well as the vast product range other than groceries such as Electrical goods.
They aim to be as successful in everything as they are in food retail. Tesco
provides many services from mobile networks, to banking to insurance. Tesco
wants to grow the service in which it provides in markets they already occupy.
Oxfam’s aims are to get rid of
poverty in addition to increase the service offered by Oxfam.
A mission statement is a short
statement produced by the organization that sums up its reason for being and
its goals and purpose. A mission statement tells the public and customers what
they should expect when dealing with the organization, and helps guide
decisions made by those within the organization.
Tesco’s mission statement is to create
value for customers and to earn they customer lifetime loyalty.
However, Oxfam’s mission statement is
to help create lasting solutions to the unfairness of poverty. They are part of
a global movement for change, empowering people to create a future that is
secure, just, and free from poverty.
Oxfam’s vision creates a world
without poverty. they want a world where people are valued and treated equally,
enjoy their rights as full citizens, and can influence decisions affecting