P3: Explore the organisation structures, aims and objectives of two contrasting businesses
Marks and Spencer
M&S follows a flat organisational structure; this type of organisational structure has limited levels of
management between administrative level and front-line employees. Their span of control is
approximately 6. This structure is followed in the organisation to encourage all the employees in
involving themselves in more decision-making processes. This structure is followed to make
employees more skilled by authorising them to make decisions. Due to less management levels, the
lines of communication between upper managers and front-line employees becomes easy which
allows rapid change to take place with quick problem solutions.
Marks and Spencer used to have a tall hierarchical structure. The changes within Marks & Spencer
have created a business that now operates using a flatter organisational structure. The business lost
a number of layers of authority through a process of delayering. This means that employees
throughout the business have more responsibility. This enables them to make quick decisions when
required. At the same time, these employees have more accountability and control than before. This
suggests that they must be prepared to explain and justify the decisions that they take.
The Marks & Spencer Head Office in London employs around 3,000 people. These employees have
specialist roles within the organisation. There are the buyers of stock, people involved in managing
stock and its layout within the stores, and staff working under the marketing and finance section.
The changes within Marks & Spencer have created a business that now has a flatter organisation
structure. More than 60,000 employees work in the Marks & Spencer stores, many in management
roles where they lead and motivate a group of people. The company also has many franchise outlets
overseas. These employees also have training needs where they have managers teaching them how
to run the business.
Marks and Spencer Organisational Structure:
Chief Executive
Officer (CEO)-
Steve Rowe
Marks and Spencer’s hierarchical structure
consists of more departments such as
operations, sales and merchandising. Their
Chairman- Archie organisational structure is very simple as
Norman
the employees report information to their
director who then reports to the chairman
Chief Finance Marketing Human Resource who reports to the Chief Executive Officer
Officer- Humphrey Director- Sharry (HR) Director- who is Steve Rowe.
Singer Cramond Harriet Hounsell
Employees Employees Employees
, What the functional areas are responsible for:
Finance
In Marks and Spencer’s financial department, employees are responsible for managing cash, making
sure they don’t fall into bankruptcy. On Marks and Spencer’s careers website, they have written
‘Finance at M&S isn’t just about numbers. It’s about engaging with people from across the business,
helping them to understand the value they bring, as well as the commercial focus and direction of
our business. Retail is a dynamic and diverse sector. With this in mind, our finance team needs to
make sure we set the pace, ensuring targets are met and strategies are understood. Our financial
experts have responsibility for business strategy, growth and, ultimately, the profit and loss of the
business, both in the UK and internationally.’ This means that the finance department work hard
with other outlets to ensure that instead of making a loss, they are making a profit to boost and
grow their company.
Marketing
In Marks and Spencer’s marketing department, employees are responsible for promoting the
products, ideas and mission of the enterprise, finding new customers, and reminding existing
customers that they are in business. It organises all the activities that are concerned with marketing
and promotion. On Marks and Spencer’s careers website, they have written ‘The originality of our
food and fashion campaigns helps us build our brand and capture the imaginations of customers old
and new. Creating them means working with various teams and a roster of agencies to deliver a
consistent customer journey from home to store every month. Driving one of the biggest brands in
retail is the ideal way to take your career to the next level. It’s a challenging part of our business with
new collateral to create all the time, so things never stand still for long. That said, you’ll have plenty
of opportunity to define the packaging, in-store decor and messaging that surrounds them. It’s also a
chance to draw on your imagination, develop your knowledge and get your passion for our brand
seen by millions.’ This means that the marketing department work hard to inform and promote their
brand and products for the purpose of gaining attention from more customers to purchase their
goods.
Human Resources (HR)
In Marks and Spencer’s HR department, employees are responsible for hiring and firing employees,
training workers, maintaining interoffice relationships and interpreting employment laws. The
department works diligently behind the scenes to ensure an organisation runs efficiently. On Marks
and Spencer’s website, they have written ‘We have an outstanding HR function to make sure
employees are well managed, motivated and encouraged to reach their full potential. We employ
around 85,000 people worldwide. Looking after them all is the challenge our HR team rises to every
day. Sourcing the very brightest talent and getting the best from our existing employees is what HR
at M&S is all about. So, you can expect a fast-paced and stimulating environment, with colleagues
who deliver an HR service that has a real, tangible impact – both on the business and the people that
work here.’ This means that the HR department work hard in supporting employees as they are the
most important resource of the business which drives the company depending on their level of
input, which comes from the HR team as they ensure the employees are motivated to work.
Business Aims and Objectives
They want their customers to choose M&S products and services because they're informed
about the healthier and more sustainable options they offer.
They need their colleagues to be fully involved in developing and promoting the business.
They need to find ways for their operations and supply chains to become even more
efficient.
They want to reduce their costs by £350 million by 2021.
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