Describe the management style and culture of the business.

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AVCE BUSINESS

E5-Describe the management style

And culture of the business, C2-Explain how the organisational

Structure, culture and management style of the business affects

Its performance and operation and helps it to meet its objectives

Organisational structure is the formal and systematic way the management of a business is organised. When presented as a diagram, it shows the departmental functions and who is answerable to whom. Structures can be adopted by the business according to the size of the organisation, the preferences of the owner of the business and the environment in which the company works in. The organisational structure can affect the business in positive and negative ways. The size of the business is a factor because if the company increases, then profit making would be unsuitable as the company is growing by stature. Therefore as the company is escalating, then the chain of command becomes longer and perhaps widens the span of control.

   The culture of the organisation is a huge influence on the structure that the business adopts. Sainsbury’s would use the matrix structure as they are trying to be the best business in the market of supermarkets. The matrix structure would be used, so organisation would be minimised. Other companies would use conventional methods such as the hierarchical method because positions are take precedence over employees.

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   There are many organisational structures and they include:

  • TALL

This structure has many layers but a lot of problems are found especially with communication being a huge problem. The person with the most control of the company covers the top layer. Underneath are the employees who do not have as much authority as the staff above them.

  • FLAT

The flat structure has the wide span of control and fewer layers than the tall structure and there are also fewer subordinates. The staff member who is in control can find this difficult because he would have to deal ...

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