Introduction hierarchy within an organisation. An organisation structure

Introduction  I am going to talk about how two businesses are organised and different structures of the organisations. What type of work they do in the organisation and explain in detail how work is organised within the companies.  What is organisation structure and what does it show?  Organisation structure is a system the company would use to define a hierarchy within an organisation. An organisation structure identifies each job within the company and where each job would report to inside the organisation. Looking at the organisation chart below, we can see that the managing director has to report to the board of directors. This is called vertical communication as the managing director is exchanging information about the company to the board of directors who are in a higher class of the organisation. This is the structure a company would normally use as it is simple and easy to follow.     Types of Organisation structure  There are three main types of organisation structure… Types: Pre-bureaucratic structures which is common in smaller organisations, bureaucratic structures contains many levels of management, post-bureaucratic is used for a range of ideas, functional structure, divisional structure, matrix structure is an organisation which frequently uses teams of employees to accomplish work.  Functional organisation structure  This type of organisation structure is the most common structure used by organisations. The organisation is divided into small groups based on specialised functional areas. For example, finance, marketing, human resources and many other organisational areas are split to do their specified role. This is a positive and effective way to run an organisation as the employees with shared skills are grouped together. However a disadvantage would be that other functional areas may not communicate effectively with each other, potentially decreasing maximum profitability due to limited flexibility.   Divisional Organisation Structure  This type of organisation structure divides each organisational functional into a division. These divisions can correspond to either products or geographies. Divisional structure has many umbra groups in other countries. This is an advantage because if one division fails, it will not affect the other divisions in the company. A disadvantage however can include increased accounting and taxes due to operational inefficiencies from the separation of specialised functions.  Matrix Organisation Function  This type of organisation structure allows employees to have dual reporting relationships with both a functional manager and a product manager. Matrix organisation is a hybrid between functional and divisional structure. An example of a matrix organisation is Volkswagen. This is an advantage because employees can talk to many people within the company. Also, the communication flows both horizontally and vertically through the organisation as it helps employees understand the work they have to do and the expectations of the company which will help maximise profits. A disadvantage however is that it is the hardest type of organisational structure to work in as there are conflicts on resources and overlaps which lead to turf battles.  Tesco Organisational Structure  The organisational structure of Tesco is just like the typical organisational hierarchy of any most companies. The regional manager communicates with the store manager. This is called vertical communication as the regional manager is higher in the hierarchy. The store manager communicates with however many functional areas/divisions the company has. This makes it easier for the store manager to exchange information between certain groups of the company which will help the company maximise their profits as the communication is good between other areas of the company.      ActionAid Organisational Structure  ActionAid has a different organisational structure to Tesco as they are a non-profitable organisation. ActionAid has only two categories: Affiliates and Associates. Affiliates are people who are attached or connected to the company/organisation. An associate however is a person with limited or subordinate membership of a company. Not much communication is needed as the organisation is non-profitable. This means that the company does not keep any profits and does not aim to get any profits. All workers know what they have to do throughout their work so there is limited communication as it is not needed. The company also runs a Matrix organisation structure so everyone can communicate with each other if needs be.  Conclusion  In conclusion, most companies run a functional organisational structure as it is easy and simple. Tesco runs a functional structure to operate their business as they are a profitable organisation whose main aims are to maximise profits. ActionAid on the other hand run a matrix structure as there are only two categories of work and because not much communication is needed as they don’t need to buy and sell products.   Aims and Objectives of Tesco PLC – M2  Make as much profit as possible. Make customers want to come again Have good reviews. Be the best business in their field.  Tesco has many departments that allow the company to make as much profit as possible. These departments try to prevent any errors from happening within their workfield. The departments that help maximise profits in Tesco is the IT department, sales department and  market department. These are interdependent departments which means that they need each other so they can become successful.  The IT department ensures that the online Tesco website is up to date. They have to make sure that people can purchase products from the website and that their are no errors within the website. If there were any issues, the IT department would have to notice it and fix it immediately as they could lose sales causing a decline in profits. If the prices of an item changed or if a new item was introduced, they would have to change that also so there is no confusion between the customers and the company.  The sales department are the people on the shop floor. The employees are there to assist any customer that needs help. They have to make sure they communicate with the customers as professionally as possible so that the customers are happy with the service given. Customers are the key to a company maximising profits so the employees are a crucial part of a company becoming successful. If an employee was not to give the right service and not do their job correctly, the business would not increase profits and items may be vulnerable from being stolen. This can be prevented if the employee’s work accordingly.  The market department are the workers behind all the advertisements and billboards we see everyday. Tesco advertises about their products so they can attract new customers which will increase profits. The market department have to organise the way the advertisement is set and what it should include. This is because they are specialists in their field that know what would persuade and attract customers into Tesco. However, a small mistake can cost Tesco a huge amount of money as they have to pay for the advertisements to be broadcasted on TV so if there was a mistake or false information in the advert, Tesco would lose customers. This makes the market department’s role an important feature to Tesco as they have an influence in the total profit Tesco makes.   Aims and Objectives of ActionAid – M2  To change lives across the globe.  To attract donors. Influence the development of countries. Raise awareness the things ActionAid do.  ActionAid do not have as many departments as any profitable organisation such as Tesco due to them being a charity. A charity only has its trustees, the marketing department and the employees that work on delivery to try and reach their goals and aims. The trustees are responsible for getting the right products and the right amount. They do this by communicating with the trustees to ensure they don’t get the wrong products or don’t get more than they need. The trustees also need to persuade donors to donate money into their organisation so they can provide aid to those in need.  The marketing department are responsible for advertisements. They have to ensure that the adverts they make are as subjective as possible so that the general public can donate money to their organisation and help aid unfortunate families. The marketing department need to also provide information to the public on what exactly they do and how they help people. This persuades others to donate so they also can change lives across the globe and raises awareness of the charity. This has a huge influence on the organisation reaching their aims and even exceeding them as the marketing department can raise a lot of money.  The employees that help deliver the products to the families and children also have a huge impact on the success of the charity. This is because they have to send the right amount of aid to people. If they didn’t deliver the items, people cannot receive aid and the company would not be achieving their goals. This could lead to the charity shutting down and losing a lot of money on the products they purchased. The delivery team keep the organisation on the right track because are also responsible for the success of the charity.    Reference: 


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