Organisational structure Rolls Royce is a technology and global leader. They employ 35,200 people and operate in 48 countries

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Organisational structure

Rolls Royce is a technology and global leader. They employ 35,200 people and operate in 48 countries.  

Headquarter is based in England UK. Large manufacturing plants are for example located in American, Singapore and China. A hierarchical structure is used to manage the company.  As a giant company, they choose hierarchical structure to manage the company.  It is a traditional and effective structure for Rolls Royce to supervise and develop the business. The Group managed by detailed systems and procedures due to the large turnover.  Their annual turnover is £5645 million.  And the group enjoys 25 percentage of the engine market in the world. The Group supplies all the major engine sectors: transport, combat, trainer, and helicopters.

There are many layers between the top and the bottom in the group.  The top layer set up the policy and decision making.  The bottom layer would follow the guideline so they can achieve the company objectives.

The group structure is

Chairman

Board of Directors

Group of Executives

Board of Management

Group of General Management

.

..

…..

……….

The main departments within the group are:

Administration Division Business Division Customer Support Division Network Development Division Production Services Division

R&D Department Finance Department Human Resources

Each division has managers for supervision. The staff in each division needs to follow the managers’ decision.  Every member of staff clearly understands their role and responsibility under the hierarchical structure. It is because each layer gets different responsibilities.

Advantage of hieratical organisation

Employees know their objectives clear in their job task and carry out efficiently. Beside that, every staff specialised their job. For example: engine designers responsible for designer and develop engine.  HR staff responsible recruits and select people.  Divide of labour and specialization can be applied so that it increase the working efficient and reduce operation cost.  Clear lines of responsibility and control functions are clear.

Disadvantage of hierarchical

Too many layers in the group, it is difficult and time consuming to communicate between employees. Decision making are not quick enough to react to the market.

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A role culture is adopted in Rolls Royce Group.

Role culture is typically for a large organisation like Rolls Royce.  It defined job roles clear to all the employees in the Rolls Royce group to carry out. A number of functions are divided in the group such as: HR function, research and develop function, financial function etc. and the role culture in Rolls Royce are emphasis on rules, routine and procedure and job tends to be more important than the person.

 

It reliance on rules and procedures.

The Company requires the directors to ...

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