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BTEC BUSINESS LEVEL 3 UNIT 1
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LEARNING AIM B - COVIERA A RANGE OF UNIT 1.
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LEARNING AIM BUNIT 1 EXPLORING BUSINESS
, Investigate how businesses are organised in Apple and British Heart
Foundation
Why do businesses have organisational structures?
An organisational structure is essential and fundamental for every business. It is a
system used to define and explain the role and activity of a person and what they are
expected to achieve an aim. Likewise, this identifies and portrays the specific roles
and functions if a person, therefore, making them more efficient and productive when
working. Also, an organisational structure is when a person is guided and directed to
achieve a specific goal for the business. The reason businesses have these
organizational structure is so that the employees if the business will have guidance
as they are being explained their role and responsibilities. Therefore, this then leads
to higher productivity and employees being more efficient. Likewise, this then
minimises risk of the business failing, which is one of the reasons why business
carry organisational structures out. This also allows the business to set boundaries
between different stakeholders therefore, there are fewer conflicts. This then means
that the business has a chain of command, therefore this shows what stakeholders
are in charge and have better authority, this then reduces stress and workload for an
individual. Businesses have organisational structures so it benefits them and
increases profit and growth.
Different structures in a business
Hierarchical structures
A hierarchical structure also known as the tall
structure, is a structure or organisational system
where there are multiple levels of roles and
responsibilities.for example a business that has this
type of structure means that they will have a large
numbers of workers for their base, and controlling
them would be a smaller level of supervisors, and
controlling the supervisors would be more managers
etc, therefore, the chain of command is lengthy and
there are people who have more roles and
responsibilities than other stakeholders. Likewise,
the structure breaks down the business by putting
and giving people their specific tasks and
objectives, this then minimises risk and workload for some individuals in a business.
An example of a business that uses hierarchical structures is Mcdonalds, they have
a very tall structure, as it is an international franchise. An advantage of having a tall
structure is that authorities and responsibilities are clear and transparent in a
business, meaning more productivity. However the disadvantage is that
communicating may be challenging as there is a hierarchical system. This then may
lead to conflicts and more mistakes in the business.
, Flat structure
A flat structure is a straightforward and
simple structure or system where only a
small number of stakeholders run a
business, therefore, this structure mostly
applies to small and micro businesses.
This structure mostly runs between middle
management with staff and managers. A flat structure then allows a business to
have quicker decision making and easier communication as there are only a few
people in charge who have authority. However, this then means as the business has
a few members in charge this may increase workload, which may affect the business
and there productivity. Likewise having a flat structure then means that the business
will have a less chance of promotion as there are few individuals who got a secure
job, therofer this may not ,motivate employees to work. Consequently, another
disadvantage is that the managers will have a large span control resulting in stress
levels increasing. An example of a business that uses this type of structure is a
small business like Heavenly desserts this is because they are a new business in the
market, therefore, they cant have a tall organisation as it will create complications.
Matrix structure
A matrix structure is a system that a business uses
that is complex. The structure allows individuals to
perform and work in a team, based on their abilities
and attributes. This then means in a business, an
employee would have more than one boss and
there is in an increase in the number of reporting
managers who are in a line. This type of structure
is used for business that have diverse and different
products and services. An advantage of having this type of structure is that
resources and information can be distributed effectively as there are more than one
person working together in a project. However, a disadvantage is that the chain of
command is more complex and difficult as some employees may have more than
one role in a business for example they could be an employee and a manager.
Holacratic structure
, A holacratic structure is a system where there is a
holistic and integrated approach to run a business
or organisation. The workforce is distributed
between the business and their stakeholders. It is
also means when everything is together and
coordinated. However and advantage of having a
holacratic structure is that workers are accountable
and can make their own decisions, therefore it is stress free, as they don't have to
wait to make decisions.an advantages is that roles are distributed therofe employees
won't get bored as they are changing roles each time they work. And also as
everyone has the same authority this then means that all individuals are equally
potent and reliable. However, a disadvantage is that the employees don't have clear
and transparent roles and objectives therefore it is not efficient and this may lead to
problems in the business.
Apple organisational structure
Apple is a big international technology company that
sells the latest products that are trending in the
market. The business also has a hierarchical
organisational structure. And a weak functional
matrix. The fundamental reason the business has a
hierarchical structure is that the business is
international ,therefore, it is massive and a market
leader compared to other business is there industry.
For example, Apple could have done this structure
as it is a traditional method to organise a business. The reason Apple is in this type
of structure is because the business has a large number of businesses and
stakeholders, this then results in a higher chain of command. Apple structure is that
there is a CEO who is in charge and has control over the whole businesses and also
makes the decisions for the business. The going down there is the Apple Operations
International (AOI), they have power and control over all of the others in the
structure, these are the offices of Apple. Then further down, there are the
contents,that operate apple for example Asia and europe. The further down the
organisational structure there is there is the stakeholders of the individual business
that run with Apple. therefore , this is the reason Apple has a hierarchy structure for
their organisation. The disadvantages of having this structure is that there will be
more span of control for an individual as there may be may staff. Also this then may
lead to higher productivity from the business. However, an advantage is that the
roles of the business member will be clear and transparent as they are explained.
Also this may lead to higher productivity. Also this may mean that there is a higher
chance for promotion in the business as there are many people who are
stakeholders, therefore the business improves even more. But this then may lead to
conflicts in decision making as there is a large chain if command.
British Heart Foundation (BHF)
structure
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