Essay
Unit 1 Business environment p3
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Describe how two different businesses are organised
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Damini Dhiman 259477GROUP B
P3- Describe how two organisations are organised.
Introduction:
In this assignment I will be discussing Tesco and NHS’ structure. Every single organisation
has a structure to help manage the business. The structure is usually shows in organisation
charts, which explain the lines of authority within an organisation. There are many different
types of ways the business can be structured.
Tesco:
Tesco has a tall structure because it is a big organisation. This highlights that Tesco has many
layers of hierarchy. An advantage of an organisational structure is that the employees
understand what they are responsible for and for whom. Furthermore, as Tesco has a tall
structure this implies that they maintain a strong chain of command from the top
(managers/ owners) to the employees. This also helps the business (Tesco) run smoothly.
However, it’s disadvantage is that the message is not passed on quickly as it goes through
many people and takes a long time to get to the specific person.
Businesses can also be classed into functional areas. Functional areas are part of a
businesses responsibility for a specific activity. As for Tesco, functional areas instead of
locations structure them. This means that they refer to the finance, health and safety,
security, Human Resources and maintenances. Human Resources, who refer to the
employees, look after them via: training them, keeping records and teaching them
discipline. Finances refers to the the money that the business is receiving and providing for
example, wages, loans and bills. Moreover, sales are referring to the products themselves
and how and what Tesco sells to the customers via retailers, online or post. This helps the
purpose of Tesco as it clarifies the lines of authority and the different ways of
communicating in a way that best suits the organisations.
The security of Tesco’s is needed to be protected as it has reports of what goods have been
received and bought. It also has receipts of customers and this includes their last digits of
their card number, if they had payed by card. The health and safety is compulsory as this
provides the safety of the customers and employees. This also determines the reputation of
Tesco’s. If Tesco’s is unsafe then their reputation will be unsatisfactory, which will mean less
customers and this leads to a cut in profits. Furthermore, the maintenances of the main
items, such as tills, have to be supervised and monitored to make sure they don’t break or
they are not stolen.
NHS:
Additionally, the NHS also has a tall structure. The main reason is because the government
owns it. The NHS has a hierarchical structure; this implies there are many layers and a long
chain of command throughout the bottom and top layer. An advantage of having a tall
structure is that it means less work and it is clear as to what everyone’s position and role is.
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