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Organisatioal Structures

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Bruce Sloan BTEC National Certificate in ICT Systems Support Business Information Systems Assignment 1 - Organisational Structures 1)i) The two main types of business organisational structures are: * Centralised * Decentralised ii) The business organisational structure that would provide the most error-free communication to and from management would generally be the centralised structure. A decentralised structure is loosely controlled and is usually largely autonomous, whereas a centralised structure has little freedom of action and is under strong control. This allows management to keep a firm grasp on what is happening within the business, thus keeping communication as error-free a possible. Centralised organisations rely on a governance structure where information management reports up through a single chain of command. Decentralised organisations, on the other hand, distribute the management of information through a multitude of functional and regional command chains. 2)i) Functional areas that would be found within a service organisation would most likely include the following: * Human Resources ( core function) * Purchasing ( operational function) * Order Processing ( operational function) * Quality Assurance ( operational function) An operational function is an area of the business that either directly interacts with the customer or is involved with producing the service/product. ...read more.


Each Tesco store will have its own store manager, who makes decisions concerning their store and no one else's. It is then the store managers' responsibility to report to the regional manager. This is important, as aspects such as demand for certain products and population etc will differ across the country. Being decentralised, this allows each regional or store manager to produce targets etc which are achievable to their store. Allowing empowerment to other employees down the organisational structure allows senior managers to concentrate on the most important decisions. Tesco not only provide a supermarket chain, but also many types of insurance, credit cards, loans, breakdown, savings, internet, phones etc. It is important that senior managers spread themselves across all aspects of the business, which decentralisation allows. Empowerment also enables departments and their employees to respond faster to changes and new challenges, whereas it may take senior managers longer to appreciate that business needs have changed. Orange: Orange is also a company that is expanding into other areas. Primarily, Orange are a mobile phone network provider, although are now integrating into broadband and looking into TV. ...read more.


High value data would cause problems if lost, or even used by a competitor as this would mean that business objectives might have to be raised to ensure the organisation is still one step ahead. Other problems could arise if vertically upwards data such as costs etc were damaged or corrupted as this would make objectives difficult to make in the first place, thus making them inaccurate. For these reasons, businesses might put security measures into place. Vertically downwards information such as specifications are just as important for meeting business objectives and need to be transported securely. Timeliness is another large factor organisations need to take into consideration in order to achieve business objectives. Within a manufacturing organisation, the marketplace can change rapidly and so it is essential for important types of information to be passed on quickly. This can start at the bottom of the organisation i.e. processing customer orders quickly will increase customer satisfaction, which is usually one of the main objectives for an organisation. Another important example is marketing, which would need all relevant information as soon as possible in order to provide an efficient marketing plan. Marketing is very important in order to raise public awareness of a product and would come highly in an organisations business objectives. ?? ?? ?? ?? COMPANY CONFIDENTIAL ...read more.

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