Identify different organisational structures used within business organisation
Businesses small or large all need structures. Without them, even the most promising businesses would fall to shambles, it helps a business organise itself, and make sure that it is maximising its potential. Depending on the size and purpose of a business will determine what type of structure it will require. There are three types of business structures; hierarchical, flat and matrix.
This type of structure is preferred for large commercial businesses that have a main goal of selling products, for example a shopping centre like Tesco. Reasons for this are because hierarchical structures have different levels of managers then a steep drop down to staff. This is relevant to Tesco as they have only a handful of managers in comparison to the thousands of staff they have. Roles in this structure are easier to follow, as you only do what you are employed for, i.e. staff work in the shops, and the manager’s work in offices. One specific advantage to this structure is that decisions can be made quickly and easily because of the abundance of managers, but a disadvantage is that there is a lack of communication between staff and managers as there is so much staff to pass the information around to at the same time, therefore the managers often end up slightly neglecting the staff as they do not have much idea of what’s actually happening down on the front line.
Have a lot less levels of staff usually from two to three; this structure is mostly present in smaller businesses such as a small hairdressers or estate agents. It usually has a manager and then just a few staff members underneath him or her. It is a preferred structure for smaller sole traders such as these examples, as they have excellent communication and can come up with ideas together to help the business as well as making all employees feel like they are part of a close knit group, which also helps...