Essay
Unit 1 - P3 + D1
- Institution
- PEARSON (PEARSON)
describe how two businesses are organised and evaluate the influence different stakeholders exert in one organisation
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An organisational structure in a company determines how the roles, power and responsi-bilities are assigned, controlled, and coordinated, and how information flows between the
different departments and levels of management. The structure allows employees to un-
derstand each job, its function and who and where to report to within the organisation.
A tall organisational structure means it has many levels of members within the organisa-
tion, ranked by authority and responsibility within the business. As there are more layers of
hierarchy there is a more narrow span of control meaning more people need to have their
opinions on an idea, resulting in slower decision making. It can also slow the pace in com-
municating with different branches of the business.
A flat organisational structure means there are few to no levels of superiority within the
business (fewer levels of hierarchy). Each individual has a wider span of control, resulting
in a larger area of activity and number of functions, people or things for which an individual
is responsible for. This results in having a short chain of command. A few key managers
have greater delegation powers. This often allows individuals opportunities to be motivated
as they are more empowered and engaged. Along with responsibility though comes ac-
countability.
Both types of structures depend on the type of organisation.
The organisational structure for Emirates Airlines is tall with 7 layers. Resulting in a narrow
span of control. Having a narrow span of control, increases the time in which decisions are
made, as there is a large set of hierarchy one needs to go through before an idea can be
implemented or discussed largely. A tall structure will also allow specialised jobs to be
within a business, this leads to further opportunity for the business to grow, as these allow
areas for products and ideas to be expertly created. Jobs like cabin crew members, who
are trained in world class facilities and in total speak over 60 languages and their world
renowned customer service. Emirates won best Airline in the world on tripadvisor in 2017.
, In the organisational system it
is clear to see that 11 depart-
ments report back to the CEO,
who reports back to the Board
of Directors. Eight departments
have a smaller chain of com-
mand as they are responsible
for their division and all em-
ployees working for them. The
other three departments have
a wider chain of command and
have a larger span of control,
this is because there are, other smaller, yet very crucial subdivision that falls under the
larger departments. For example, the Operations department, are in charge of controlling
and overseeing work in security, safety management, crew training, quality assurance and
cabin operations.
With the structure, there is smaller possibility of delegation, with allows a narrow spread of
responsibility, allowing individuals in the workplace to have smaller amounts of work with
contributes to a larger outcome.
The chairman and board of directors at the top of the organisational structure created a
strategic plan which involves numerous steps in organisation and vision for the organisa-
tion.
Emirates uses a strategic system called Executive Support System (ESS) which helps se-
nior managers in making strategic decisions.
One of Emirates’ goals is increasing profit. By using the ESS and focus on a Profit Plan-
ning System, it can allow the organisation to set targets towards the goal, it also allows a
view of estimated outcomes, and in this case estimated income statement. Using numbers
from the sales department and desired percentage for gross profit. Another example of a
ESS in Emirates is Facilities Location System, which allows employees to analyse external
information to decide where to locate a new facility. By using the Executive Support Sys-
tem it allows the senior managers to develop achievable targets the promotes growth
within the business.
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