organisational structure

Organisational Structure

In this section I will explore the organisational structure of Sainsbury's, and look at how the chain of command, span of control works within the organisation. Moreover, I will look at how communication is passed down effectively through the hierarchy.

Firstly I will actually look at the organisation chart for Sainsbury's PLC a whole then my local Sainsbury's Ilford's organisational chart.

Sainsbury's Plc - Has a tall structure a they have more authority over each other.

Sainsbury's Ilford - Has a flat structure as there are more subordinates to have control over due to the store workers.

An organisation structure is a formal systematic way a business is organised. It is usually presented as a diagram and it shows the department functions and who is answerable to whom.

The organisation structure is very important to all whom are applied to it. This is because important information has to be passed down. For it to be passed down there has to be a link of communication to the senders and receivers. This is achieved by the communication flowing up or down the hierarchy. An organisation chart makes this easier as it clearly shows the hierarchy within the organisation, so that communication can be made more effective as their will be less chance of confusion to where you will send information to your sender. Moreover, if the business is well organised it makes communication more efficient and convenient. It also builds up relationships between the hierarchies which can be beneficial to the business as more workers are getting along. These are just a few of the benefits an organisation chart has on the business.

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Before going into more depth, I will explain some of the key word I will be using. The "chain of command" is the structure of decision making responsibilities from higher"ranks" to lower levels of authority. The "span of control" is the principle of management stating the number of people a manager or other can supervise effectively. "Delegation" is passing down of power through the hierarchy and chain of command.

Sainsbury's has a clear organisational chart available to all employees and workers throughout the store. Which is important as any of the higher workers in the store can speak to their subordinates vertically, however this is not the case if the subordinates want to communicate they will have to do so horizontally. This system is efficient as the workers know who, where to go and seek advice from a member with more control and power of them. Moreover, employees will find it much more convenient and efficient to communicate with others around them due to the organised way they are categorised. For example if an employee working in the grocery department wants to query something to an employee who is in control of him/her. They will instantly know where to communicate to the department manager or their subordinate supervisor.

The organisation of the business lets all employees recognise who is responsible for what. This is done by a number of reasons. Firstly, the chain of command has the list of all the employees and their area they work in. This creates less confusion as the employees know where abouts they are situated, in terms of power and authority. WE can relate this to Sainsbury's, as if an employee is unsure about his/her power over any subordinates they could find out but locating themselves on the organisation chart. Secondly, the span of control also states how much power, influence or authority an employee has over his/her subordinates. If the person is higher up they could clearly see that they have a wide span of control in a Sainsbury's store as it is a flat structure which consists of many workers(subordinates) which have to be controlled by supervisors or managers, who in turn are controlled by their deputies or department managers. An example would be that a supervisor would want to know how much span of control they have over his/her employees, so they would check the structure of the business and see how much responsibilities they have, which in this case will be a lot as a checkout supervisor has lots of responsibility and trust within the checkout department team. Thirdly, delegation can help employees find their responsibilities, as power has been handed down from high levels of authority the employee will know how much power they have received and what changes or decisions they can immediately carry out to take affect on their subordinates.

The organisation of the business allows employees to work together effectively. This is because if any disputes over power and decision making are brought up the organisation chart can help prevent and resolve issues regarding the power and status of especially higher people in the chain of command - who may get annoyed at their lack of power and may envy their colleagues who are higher up then them. This is how it helps them work together. Another point is that the success of the Sainsbury's store will show how this is effective as all functional areas work within this structure which gives them a good image and makes them more successful. Using Sainsbury's store as an example - if the department manager feels that they have to make an important decision vital to the store - but has not enough power and authority, they may challenge and confront the manager on terms negotiating the power the department manager has. The structure of the organisation will be put to use here as it will clearly display where each person is in terms of accountability and power. This will indefinitely resolves the problem and help them work together and communicate effectively. This also applies to other employees, who can check their position in the hierarchy and their subordinates before confronting and starting disputes. These are some of the ways organisation in a business can allow workers to co operate efficiently.

Dilan Patel 6170 Unit 2 Section B

Applied Business

Miss Sambi

Peer Reviews

Here's what a star student thought of this essay

danielbeal

1st of Apr 2012

Quality of writing

The report states the term 'PLC', however this isn't explained within the report. An PLC is a Public Limited Company, whereby a person/organisation is able to purchase shares within the business. Each shareholder is therefore a part owner of the business and can influence the business. All technical terms should be explained, to allow the exmainer to understand with ease. On the flip side, the report does explain terms such as 'chain of command' and 'delegation'.

Level of analysis

The student states that the structure of the business is important, and states a number of benefits to the system. However the student hasn't state any potential drawbacks of this system. For example, the report could include 'This system is quite good, however there may be a number of potential issues. One may be bad management, as there may not listen to the people at the front line. This may cause the management to make important decisions for the business without fully understanding a number of their employees and this could impact upon the customers of the business'.

Response to question

In summary, the report is OK. The report states how Sainsbury's uses an effective system. However the report doesn't include any drawbacks, which doesn't allow the student to evaluate the organisation with a balanced view. The use of a graph to show the structure of the business (Sainsbury's) is quite good, as this is simple yet effective.

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