Tesco's organisational structure
Task 1
Organisation: TESCO plc
Our Mission
TESCO is a company, which is dedicated to professional management of both people and property. They are committed to each other through mutual respect and support. We realize the importance of individual growth in order to strengthen the whole. They invest in the development of the individual through training, education and reward.
TESCO is committed to serve our owners, our residents, agencies and each other with integrity, fairness and honesty. They seek a balance between preservation of our resources and realization of profit. TESCO's strive to combine accuracy and reliability with accountability.
TESCO is a caring organization that endeavours to exhibit
PRIDE IN EXCELLENCE
AIMS AND OBJECTIVE
> TO INCREASE PROFIT:
TESCO 's profits have topped analysts' forecasts, coming in at £1.4bn, with turnover up 11.5% at £28.6bn. Britain's biggest food retailer also said it had achieved its target for emerging markets as underlying operating profits rose 78% to £212m. Analysts had forecast that the underlying pre-tax profit would be between £1.33bn and £1.39bn.
Six years ago, TESCO launched a four-pronged plan to drive growth in food, non-food, and retail services like banking and overseas hypermarkets in places like Asia and central Europe.
> TESCO expands
TESCO has been expanding more than ever for previous six years
"Six years on our strategy remains the same. It is no longer the same TESCO," CEO Terry Leahy said.
"We have faster growth accessing more areas of opportunity and we look forward to growing the business further in a challenging market," he added.
TESCO is expanding more profitable non-food lines like clothing and growing overseas as its domestic market slows.
In Britain, where consumer confidence is slipping, TESCO's like-for-like sales growth was 4.1% over the year, with volume growth of 5%.
> Jobs boost
In TESCO jobs rate was growing steadily for the last six years.
This was slower than the 4.8% growth rate the retailer reported in January for the seven weeks to January 4.
TESCO, which has 296,000 employees around the world, said it would create a further 20,000 jobs this year.
> To provide good services to the wider community
Corporate Community Investment - 2001
The TESCO corporate social responsibility (CSR) objective is to earn and keep the trust of its customers by acting responsibly and positively in the communities it serves. With a philosophy of "Every little helps" TESCO has put a programme of community activity in place, which aims to be as relevant to all customers as possible. Customers are viewed not just as customers but also as citizens.
Processes:
Corporate social responsibility is an integral part of the business strategy and is at the core of all business values. Its stakeholders, values and core purpose define the TESCO community programme. Community activity is fully supported by head office and staff.
Community is at the heart of the TESCO business strategy and is a core value.
> To improve quality
The TESCO aim is to create value for customers to earn their lifetime loyalty. At the heart of all activity and communications are the following values which all TESCO staff (centrally and locally) work towards:
* No one tries harder for customers
* We understand customers better than anyone
* We use our strengths to deliver unbeatable value to customers
* We look after staff so they can look after customers
* Treat people how we like to be treated
* We operate as one team which trusts and respects each other and strives to do its very best
* We give support to each other and praise more than criticise: ask more than tell, share knowledge and enjoy work
* We celebrate success and learn from experience.
To be environment friendly
TESCO aims to reduce the environmental impact of the business: recycling 155,000 tonnes a year of packaging waste; 350 recycling facilities at stores; cutting packaging waste by 20%; cutting energy use and CO2 by 20%; removing all CFCs from refrigeration systems. Tesco also plays a part in being environmentally friendly by offering bags for life to customers for one pound to customers so that instead of throwing away the bags they receive from shopping they can buy the bags for life and can reuse it over and over again instead of throwing it away.
ACTIVITY
Retail: selling clothes, household items, gifts, kids items, and food items.
Manufacturing: they make their own breads and products.
Transport: they provide their own transport to carry their goods.
Communication: they provide Internet services
Insurance and banking to customers
Tesco also has an optician and pharmacy.
TASK2
Human resources department
Human resources department is the vital section of business, which includes the employees and the employer. This section includes recruitment and removing peoples. Wise organisations like Tesco regard staff, as the most important resource Human resources department is the department, which help them to achieve their aims and objectives. HR Management provides cost-effective tools for managing information about employees and applicants. Tight integration among applications ensures information is instantly available across the system. Since information is entered once and available everywhere, opportunities for data entry errors are reduced, and human resources department and payroll professionals gain time to spend on more strategic issues-organizational goals, and compensation and benefit programs. Tesco take care of their staff so they can do their best to their customers. In Tesco's there are nearly 300,000employees are working. They should praise them for their good work. All employees should treat fairly by the employer. They have to provide opportunities to take further training. All should be treated equally without victimisation, harassment, and discrimination. This help to retain good and high quality staff and there should not any unfair dismissal. Human resources department provide various kinds of activities such as recruitment, training, development, retention, promotion, and dismissal. They have to monitor and maintain a good working condition. The recruitment is done by advertising in a local newspaper afterwards they have to make a shortlist and arrange for interviews. They have to provide good training to their employees for example in large organisation like Tesco the employee is slow in till it shows in computer and they provide them with the skills and training so they can provide better services. The person who is interested and have a career plans should be promoted. They have to provide safety for the employees by checking fire alarms and make them sure it work and ensures that organisation works under the law of health and safety. They have to make their work interesting and let them know there in a safe environment. They employee should be dismissed if he or she breached the term of contract.
Example Of Human resources department In Tesco
Tesco is the leading super market growing at a higher level for last 20 years. During Lesley's (human resources department director) period with the company (1985-1999) Tesco's sales climbed from £3.5bn to £20bn and pre-tax profit from £123m to £900m and eclipsed Sainsbury as the UK's number one food retailer. Lesley championed the need for continuous change within Tesco including a major cultural shift from one of command and control to that of local empowerment based on the guiding principle of treating staff as well as customers. Tesco today is the industry leader in staff recruitment and retention, and a benchmark in customer service. Lesley contributed significantly to the fundamental change in the way Tesco was managed as it went through the transition necessary to deliver better customer service and improved financial performance. Her guiding principle has always been that "if you want your people to excel in customer service then you too must excel in the way you manage them, always remembering that it's not just what you do, it's the way you do it!" and they maintain and they are growing more under Clare Chapman who was the present human resources department director of Tesco. In the mid-1980s, retailers had such a poor image, especially among graduates of secondary school, that it was difficult for Tesco to recruit the right people. Concerned about its long-term prospects, Tesco devised a centralized program for recruiting graduates of secondary school and college. At the same time, to make middle and upper management more productive, the company redefined jobs and responsibilities. As a result, Tesco reduced the number of management levels from six to three and eliminated 4,000 managerial positions. Highly productive employees were brought onboard, and unproductive ones were let go. The employees who survived the cut were granted more flexibility, and motivation improved.
Using Workaholics to assess Tesco's success, Tesco determined that VAP increased 60 percent over the last ten years as a result of the company's efforts in human resources department. In fact, of all the retail companies we analysed, Tesco achieved the second-highest residual income per employee. It's not surprising that Tesco is now considered one of the world's premier operators of supermarkets and hypermarkets. Thanks to its decision to nurture its people as valuable assets, Tesco employs the right number of people, they have the right skills, they are in the right places, and they are doing the right jobs. For the roughly 100 positions it advertises each year, the company now receives some 5,000 applications from graduates of the best colleges and universities.
At Tesco, the success of our growth strategy comes down to our people. So in order to recruit and retain the best Tesco offer attractive salary packages, complemented by a range of innovative benefits. This year we are offering our information technology graduates £21.5k per annum.
Tesco provide 10% discount for employees worked for more than 1 year when they purchase for more than £3 in any UK store and nectar points for purchase more than £1.
Tesco operate a first-class contributory pension scheme for all employees. All Tesco employee benefit from life assurance from the day they join, employee who is a member of pension scheme will receive a lump of three years salary if not one-year salary.
Tesco providing free shares to their customers over two years experience. Tesco profit of £48 million in 2002 is shared between employee according to their % of salary this is called Tesco shares. This is kept in trust for 5years and given with free income tax.
Tesco provide more benefits if you qualify for senior management. Tesco provide various kind of benefit to keep the employee, motivated them and attract new employees around various kind of community.
I referred www. Google. Com and took notes under Tesco human resources department and Tesco human resources department director and www.msn.com for Tesco employee benefit.
Finance
Finance is the other important section in business. It will keep all the record of money coming in and out of business it maybe capital, wages, paid for raw material. Finance is very important in large organisation like Tesco's because payment of wages and salaries should be paid for 300,000 and it had to be paid correctly, on time mistake in the amount paid are never will be received. They should know their investment, profit or loss. They have to make financial accounts from these records as required by law. They have to pay money owing ...
This is a preview of the whole essay
Finance
Finance is the other important section in business. It will keep all the record of money coming in and out of business it maybe capital, wages, paid for raw material. Finance is very important in large organisation like Tesco's because payment of wages and salaries should be paid for 300,000 and it had to be paid correctly, on time mistake in the amount paid are never will be received. They should know their investment, profit or loss. They have to make financial accounts from these records as required by law. They have to pay money owing to their suppliers and the money somebody owed them when they allowed them in buying credit. They have to consult senior managers or directors on major financial decision. They should have keep a receipt or proof a financial transaction. They have a control on the level of debts owed to the company. They have to keep record about all of the employee wages and keep records of their Inland Revenue and taxation without any error with satisfaction.
Examples Of Finance In Tesco
Tesco became the second British retailer in history, after Marks and Spencer, to post profits in excess of £1 billion.
The biggest supermarket retailer in the UK is making around £3 million in profit a day, and accounts for 25 per cent of grocery sales in Britain.
Tesco Personal Finance (TPF) is one of the UK's fastest growing financial services businesses. Over one million accounts and policies were opened this year and it's share of profit rose from £3 million to £20 million. TPF now has over 2.5 million Accounts. With 20% of sales now originating from the Internet and 80% of business coming through the stores, our products are available where and when our customers want them
The cheque pay-in facility at Tesco checkouts is a world-first initiative. This was rolled out this year to over 500 stores.
Instant Travel Insurance rolled out this year to 450 stores, a new and convenient way to buy travel insurance with no form filling and no fuss - just pick up a pack in store and pay at the checkout.
ATM charity payout was a UK first, with TPF donating 1p to charity for every withdrawal from our TPF cash point machines; £265,000 was raised for The Alzheimer's Society.
I referred www. Google. Com and took notes under Tesco finance.
Administrations
Administrations help to operate business or an organisation like Tesco as effectively as possible. It provides various kinds of activities to support other functional areas. They provide better job opportunities for staff and they try to improve the skills and experience of staff by changing to different departments. They have to handle various kind of information such as documents received and held by the organisation. They have to create and store the documents and transform them to different kind of functional areas in the business. They have to send and receive messages from their customers and they have to meet other visitors face-to-face. They have to arrange meetings or conference for the business and they have to arrange foreign trip for their senior officers. Customer's enquiry should be answered early as possible and make sure deadlines are met, documents are sent without mistakes. Administration includes clerical work, cleaning and security. They have to have a clean paper work and correct information in fingertip.
Example Of Administration In Tesco
Tesco.Com boosts Tesco administration success. Tesco provide telephone shopping and Internet shopping. This enables customers to shop from home and they have an option of shopping and they provide online cash back to their customers. They have to send leaflets describing about their new offers. They have to mail properly to their customers about their value of nectar cards they have to respond to the enquiries of their customer by having all the information in fingertip. Example of Administration work in Tesco includes such as clerical work, cleaning and security.
Productions
A production is one of the sections in the business. It can be classified into manufacture of goods or services however organisation like Tesco tries to provide good services to their customers because they want to treat customers in their own way. If we consider manufacture of goods it may be food items like breads and cakes. The process of meeting the company aim is called operation. The operation staffs main duty is to obtain the resources found and makes them into finished products or services.
Examples of production in Tesco
Tesco mainly producing bread by having their own bread factory. Tesco are producing their own bags. Tesco Stores Plc ensures brand integrity and optimises packaging production with Tescodesign.com
Tesco Stores Plc is the UK's largest retailer, operating 979 stores in 10 world markets and employing 300,000 people all over its 2029 stores all over the world. Tesco Ireland, in association with Enterprise Ireland, operates a scheme known as the Supplier Development Programme. The purpose of the scheme is to help Irish companies to compete in a rapidly changing trading environment.
A supplier company will normally approach Tesco with a new product or concept, which may be either a Tesco brand product or branded product. If it is a Tesco brand, the first step is to audit the supplier's premises and their production process. Companies will be audited under the following key headings
Food hygiene requirement
- Quality management systems
- Factory capability
- Supply chain management.
Jobs Roles In Human resources department
Human resources director
Clare Chapman is the human resources department director of Tesco Responsible for the entire human resources department functions including pay and policy department, employee relations, training and management development, operations and occupational health for Tesco's 300,000 employees. And he is the person deciding the overall staffing policies of the organisation and he has to set HR budget and he had to advice senior managers about their management.
Human resources department manager
Mark Roberts is the human resources department manager of Tesco and he should carry out the work of human resources department director and managing the HR department and staff.
He should involve with industrial relations and trade union negotiations, implementing the organisation's HR policies.
Recruitment officer
He is responsible to find the right staff to fill the vacancy by advertising in local newspaper or Internet with a job description He should make a short list of application forms and arrange interviews. For a higher post vacancy they have to consult human resources department director or manager.
Training or staff development officer
He is responsible to provide various kind of training to the staff. If a person is slow in till he should provide training to them and he should provide various kind of skills such as communicational skills and people skills to them to provide better services to their customers.
Job Roles In Finance
Financial director
He is responsible for the finance function of the organisation and he gives advice to senior manager on financial matters of the company. He had to over look the financial budget of the organisation.
Financial manager
He is responsible for managing the finance function and the staff. He should consult financial director on major financial decision of the company. He gives advices to the staff on financial resources.
Credit controller
He is responsible to ensure the money owing to the company is keep within agreed level. He will give advise on credit policies. He checks the credit status of customer's accounts and reminding customers of their overdue payments.
Credit control clerk
He will assist the credit controller in checking the credit status of customers and he help to remind customers of over due accounts. Credit controller advised him on various credit policies.
Job roles in administration
Company secretary
He is responsible for the administration. He is a senior executive responsible for all the legal affairs of the company. He will deal with the shareholders and he arranges director meetings he will also look after the insurances and pensions matters of the company.
It manager
He is responsible for the IT section of the company. He manages all the IT requirements of the company. He wills advice on future needs of the company and maintaining all the IT equipments.
Chief security officer
He is responsible for the security staff and advising them on security requirements and he looks the company is monitored and maintained security to the required standard. In supermarket like some people steals and go away by breaking the glass of window so they have to confirm that they set a high standard security.
Cleaning staff
He is responsible to keep the company clean. He cleans of general offices areas, facilities and equipments.
Job roles in productions
Production director
He is responsible for the entire production functions and its operations and he will advice senior staff on major decisions.
Chief engineer
He is responsible for all maintenance staff and he is responsible for scheduling and maintaining all the equipments in the company and he will recommend in modifications.
Stores staff
He will store and monitor stock of all raw materials and components. He will issue them as required by them.
Factory operatives
They will under take all the production and assembling activities of manufactured products by machines or by hand and they check they have done the entire task.
Rights And Responsibilities Of Employee And Employer
The right of the employee is not far different from responsible of employers and the right of employers is also not far different from responsible of employees.
Rights and responsibilities of employees
Rights of employee
To work in a safe and healthy environment
To receive statutory sick pay (SSP) during illness
To itemized pay statements
To return to work after illness
To time off work for public duties, for example, jury services
To receive written particulars of employment within two months of starting work
To provide information about your rights
There should not be any unlawful deductions from pay
There should be equal pay for women and men for same kind of work
There should not be unfairly dismissal
Women's should allow taking maternity leave and return to work after leave
To be treated equally and fairly
There should not be discriminated against on grounds of race, sex, disability
Responsibilities of Employee
To turn in time
To meet health and safety regulations
To meet the aims and objectives of the business
To provides good services
To maintain standard quality in their work
To obey the terms and conditions in the contract of employment
To act in a good faith
To take care of your employer property
The Rights And Responsibilities Of Employers
Employer rights
Employees are expected to comply with the terms and conditions of their employments contract
Employees are expected to comply with health and safety regulations
Employers may take appropriate disciplinary actions against an employee who does not comply with their terms of contract or health and safety regulations or who commits offences against fellow workers or their organisation
Employers have their rights to defends their action at ACAS, an employment tribunal and the European court of justice
Employer responsibilities
To behave responsibly towards other employee
To explain business aims and objectives
To offer and facilitate training
To implement equal opportunities at work
To comply with health and safety regulation
To carry out reasonable and lawful instruction
To calculate their pay and any deduction
The employment right act 1996
This law simplifies the work of employment tribunals and allows them different ways to solve employment disputes. To speed up the process of setting disputes an employment tribunal can decide a case without a full hearing or in some situations, without a hearing at all.
According to this employee should receive written particulars of employment within two months of starting work. All employees entitled to a payslips, which shows gross pay and net pay and details of deductions such as tax. Employee cannot be dismissed for act as a trade union official or health and safety representative. Employee must be allowed to time off work for public duties, for example, jury services. Employee can receive statutory sick pay (SSP) during illness up to 26 weeks. If any employees are unfairly dismissed they have right to file a complaint to an employment tribunal. In this law the employee have a minimum period of notice between 1weeks and12weeks according to their time they employed an employer not giving this notice would be guilty of wrongful dismissal. Employees dismissed thorough redundancy should receive a redundancy payment if they have more than two years services if the employee is redundant and the employer is bankrupt they can apply to the secretary of state for payment.
According to this law Women's should allow taking maternity leave and return to work after leave they are eligible to work afterwards on the same terms and conditions as before. This law protect employee by telling their rights and benefits.
The sex discrimination act 1975
This act was passed in1975 and it also passed in1986 to avoid sex discrimination. This act makes illegal to discriminated against a person on grounds of sex and marital status whether in job adverts, interviews, selections, training, promotion, dismissal, and terms of employment either directly or indirectly the sex discrimination act 1986 removed restrictions on the hours women could work each week. This act protect employee from any racial behaviour and provide equal opportunities to all people.
The race relations act 1976
This act says that is illegal for an employer to discriminate on grounds of colour, nationality, race or ethnic origin in employment, education, trading and the provision of housing and other services either directly or indirectly. For examples only Germans peoples only or those who speak Dutch as a first language can apply. This law provide opportunities to all community peoples but it is possible to advert like who can speak Dutch can apply.
The disability discrimination act 1995
This act suitable for the employer that has more than 15 employees. This act makes it illegal for an employer to treat a disabled person less favour than someone else because of his or her disability either physically or mentally but must be relatively long term for at least more than 12 months. Employers must also be prepared to make reasonable adjustments to the workplace to enable a disabled person to do a job. Discrimination in this case can report to the tribunal. It is also allow the government to set minimum standards so that disabled people can use public transport more easily. The act set up the national disability to advice the government on discrimination against disabled people.
Under this act employers and people who provide goods and services to the public must take reasonable measures that they are not discriminating against disabled peoples. If a disabled person feels that they have been unfairly treated in the provision of goods and services they can go to court to seek any damages for any financial loss or injury to their feeling there is no upper limit on the amount of damages that can be paid for injuries to feelings.
This act help disabled people to live a better live and treated fairly in the community among others.
There are 6.5 million disabled people in the UK including 2.4 million of working age. Only 31 per cent of these are in work. Twenty two per cent of unemployed disabled people have qualifications of a level/h grade or above. The Government believes a reasonable average cost for adapting premises to employ a disabled person is £200 per head. In some cases, the Government will pay part of the costs through its 'Access to Work' programme Around 700,000 are employed without support in the UK and more than 10,000 people with disabilities are currently working in industry through supported-work placement schemes where companies receive advice and support throughout the employment of the worker.
How Employee are safeguarded by employment law
Employment right acts 1996
Employees are now well informed about their rights and responsibilities due to this law. In large organisations like Tesco the employees are entitled to SSP for 26 weeks and they provide good pension scheme to their employees. Tesco is an organisation, which treats all community peoples equally and fairly. In tesco the women have grant maternity leave and have right to work after the leave. In organisation like tesco peoples are allow taking leave on public services. Tesco is an organisation with pride and reputation and work within law. In Tesco who there violate their disciplinary procedures have been given oral warning and then written warning and if he didn't change his manner of attribute they will given final warning and then they will be dismissed.
Sex discrimination act 1975
It's illegal for an employer to discriminate them against their sex or marital status. In organisations like Tesco treats all peoples equally whether in job adverts, interviews, selections, training, promotion, dismissal because of this law if they didn't they can take them to tribunal. Tesco beware and make sure that any employees and customers are not discriminated. They don't want to spoil their pride and reputation in the local neighbourhood. In Tesco men and women were treated equally and equal opportunities to all kind of peoples. In Tesco the employers never think that male workers can do hard jobs than the female workers so get rid of them.
Race relations act 1976
According to this law it's illegal if an Employees is discriminated on grounds of race, gender and nationality. In Tesco now employee and employer are well aware it and those discriminate other will be given oral warning and if they didn't improve it they will give written warning or final written warning. They didn't improve at all they can be dismissed. This law protect employee from the discrimination. Tesco is aware of that any employee discriminated due to their ethnic origin by other ethnic origin employees so they monitored on their ethnic backgrounds. This monitoring helps Tesco to get rid of unfairness, inequalities or any disadvantage for their employees. Tesco research about personal procedures and this enables tesco to know about underlying groups and why they are using their services.
Disability discrimination act 1995
It's illegal for an employer to discriminate an employee on disability whether it's physically or mentally. In organisation like Tesco they have arrange some adjustment such as special till for their disabled employees and special trolley for their disabled employees and customer. If an employee or a customer is discriminated directly or indirectly then they can take them to court to seek any damages for any financial loss or injury to their feeling there is no upper limit on the amount of damages that can be paid for injuries to feelings. This law protect disability peoples from any discrimination in their neighbourhood whether as an employee are as a common people. In Tesco they have a separate bathrooms for disabled peoples and adjustable chairs and desks for employees and enough space to bring wheelchairs for disabled peoples. In Tesco they are providing a clearly structured induction programme because some peoples with disabilities need encouragement when they entering a new working environment and they consult them about their work place and find solution for their difficulties in their workplace. In Tesco disabled peoples are not discriminated in promotion.
The functional areas help to achieve business aims and objectives
> In human resources department they are providing training to the staff to work effectively so human resources department help to improve quality in services in peoples.
> In finance it will show them and have a clear ideas of the future investment. This makes company expand if the company expand automatically the jobs rate will increase. It will help to increase profit.
> In administration it provide all kinds of works and they arrange everything for the other functional department. This department help in improve in quality of services and it makes business expand.
> In productions they produce goods. This department help to improve quality in both in goods and services.
> In marketing and sales they use to sell product and do market research for their company and they use advert the product but also have connection with other functional areas. This department enables to expand and make profit.
> In research and development they use continually improve product services this enables company to improve quality and expand
> In quality control they will see the quality of both product and services
These are the functional helps to achieve its aims and objectives.
If a business want to be successful all the functional areas should work as a team because each depend on others for example in finances the credit controller is going to retire. Finance department should let human resources department know and both department should consult to make a job description to find the right staff for the vacancy if they cannot do this they cannot find a right staff it's going to affect on aims and objectives such as improve quality in both employee and services to the customers and indirectly in profit. The finance department should let administration department know it so they can arrange pension scheme to the employee. This will satisfy the employee and improve quality in their services. The production department should let human resources department know for its staff needs. Additional staff may be needed to help process a large order or to met a high seasonal goods or services. This will them to get skilled worker so there will be quality in their workforce and there will be an quality in their product and services. Production department let the finance department know about the production budget and the cost of the items. It's make them to know about their budget and it will help them to know about their profit and capital investment and about their financial records. Production department use their own administrators for checking of raw materials to producing productions schedules and maintenance reports. This will improve their quality in product. Administration is the department provide services to the entire department.
In functional areas improving quality is very important because if they are going to improve in quality in both product and services automatically there will be increase in sales and profit when the profit increases they will expand and the jobs rate automatically increases.
Human resources department is very important section because of recruitment. HR staff should make sure that they advertised with enough sources for recruitment and the paper work is completed and the interviews scheduled according to company rules. They have to make sure that enough training programs are arranged for all staff and they have let managers to know about employment law and right and responsibilities of employee. And healthy and safety regulation are met.
Task 3
Internal communication grid for tesco
Business
Function
Method
Content or purpose
Who it is for
Strengths of methods
Weakness of methods
Human resources
> Face-to-face
> Memos
> Letter
Disciplinary
To attend a meeting
Disciplinary
Employees
Relatively cheap
Body language can be used
Rapid
Cheap
Record of evidence
Has formal authority
Clear speech is essential
Time consuming
Should be written clearly
Skills needed
Will be spoiled by poor language or punctuation
Skills need to produce
Finance
> Over head projector
> Meeting
> Fax
Profit forecast
To make financial decision
Sending documents
Employees /accountants
Senior managers
To another departments staff
Visual
Doubts can be cleared
Feedbacks and comments
Can check listeners paying attention
Proof of evidence
Rapid
Equipments needed
Expensive and explanation needed
Time consuming
Long or complex messages can easily forgotten
Skills needed to use it
Expensive
Administration
> Walkie-talkie
> Pager
> Email
Theft
Urgent information
Information
Security staff
Employee
Cheap
Rapid
Fast
Can see the information again
Rapid
It's protected by a password and ID so named user only can access the mail
Message should be clear
Clear speech essential
Expensive
Only information can received
No proof of delivery
Need equipments
Production
> Fax
> Spreadsheets
> Mobile phone
About recruitment
How much to produce
Break down of machine
Human resources staff
Employees
Chief engineer
Rapid
Record of evidence
Rapid
Records of evidence
Rapid
Immediate response or message can be given
Expensive
Skills needed to use it
Need ability to produce
Expensive
Clear speech is essential
It should be charges and switched on.
External communication grid of tesco
Business
Function
Method
Content or purpose
Who it is for
Strengths of methods
Weakness of methods
Human resources
> Advertisement
> Meeting
> Interview
Recruitment
About company
To appoint new staff
Future employees
Employees
Future employees
Everyone can apply
To make people aware of vacancy
Feedback and comment
This ill help employee to know about the company
Right person can be chosen for the job
It help to know about the candidate expression and response
Wrong person may apply
Expensive
Time taking process
Special arrangement and a room needed
Good interviewers need to choose a right person Special arrangement and a room needed
Finance
> Letters
> Prospectus
> Reports
On amount due
Financial performance
Financial Records of Company and legal obligations
Customers
Shareholders
Government
It will remind them to pay on time
Proof of evidence
This will make them to know about the performance of the company
It will help to attract more share holders
It will them to know about the company
It is an written evidence
Delivery may take time
Skills needed
It should be presented neatly and accurately
Expensive
It should be presented accurately and clearly
Time consuming process
Administration
> Brochure
> Telephone
> Letter
About company new products and offers
To book a ticket for a senior manager
To attend a meeting
Customers
Travel agents
Share holders
This make customers to know about their product
It will attract new customers
Rapid
Can know the details and result
Message will be clear
Proof of evidence
Skills needed to make a proper brochure
Expensive
Clear speech essential
No distraction should be there for listener
It should be sent to many person quickly and accurately
Delivery may take time
Production
> Telephone
> Letter
> E-mail
Delay in Raw materials
Problem with quality
Machine breakdown
Suppliers
Employees
Technician or mechanic
Rapid
Can know the reason on delay easily and quickly
Proof of evidence
Can be used for future references
Rapid
It's protected by a password and ID so named user only can access the
Message should be clear
No distraction should be there for listener
Skills need to write
It can be easily spoiled by poor punctuation or spelling
No proof of delivery
Equipments needed
Communication is essential in business. In business like Tesco, they consider communication as an important prospect to met their aim and objectives. In Tesco they use to communicate thorough memo, e-mail, meeting, etc
Communication can be classified into
. Oral communication
When people talk to someone face-to-face, on the telephone or when you attend a meeting, interview its called oral communication
2. Written communication
When a person communicates in writing it's called written communication it can be memos, letters and reports.
3. Electronic communication
When people communicate thorough electronic devices is called electronic communication it may be e-mails, faxes, video conferencing, computer file transmissions and satellite links.
Communication can be classified into internal communication and external communication. When the people communicate inside the organisation it is called Internal communication e.g. when a manager passes any messages to its staff it is called internal communication. When people communicate outside the organisation it is called external communication for example if an employee meets a visitor
How communication helps Tesco to achieve its aims and objectives
In Tesco communication helps to achieve its aims and objectives. Although it doesn't help to achieve all of the aims and objectives it help to achieve their mains aims and objectives such as
To make profit
To expand
To provide good services to the customers
To provides jobs
Tesco advertise their product thorough brochures, Internet, television to inform people about their product rates and special offers at the stores at the time. Tesco spends lots of money to advertise their products and make sure that have reached their customers. This will attract more customers and enables Tesco to make a profit. Tesco advertises vacancies thorough Internet and newspaper and find a right person for the job to provide good services to the customers. If Tesco makes profit it will help them to expand and create more jobs so advertisements helps Tesco to achieve their aims and objectives such as making profit, expand and creating jobs.
Tesco used costly and effective communication method such as demonstration, video in training so that the colleagues can be trained efficiently so they can provide good services to the customers. Tesco used to check their availability of product and order them at right time so they can provide better services. They do not want to disappoint the customers and they advert their prospectus and advertise their financial performance to attract new shareholders so they can get more money, which will help them expand worldwide.
Tesco need to communicate very well because they are running their business at international level. If a business wants to expand worldwide or want to create new jobs they need to make profit. Tesco makes 3 million profit a day and serving more than billions of customers per week. Tesco need to check there expire dates and quality of their product so that their customers are not affected.
Tesco arranges meeting with the staff so they can discuss and create new ideas and feedback about their services and Tesco used to communicates with customers and take their ideas and complaints to improve their services.
Tesco uses to give written warning to their employees and the person who breaches the employment contract and they finally dismiss them they have written evidence and they can use it for future references and they employ the staff that can take care of their customers.
Tesco uses overhead projector to analyse the profit forecast with the employees and accountant which is very expensive and Tesco used to arrange meetings with their senior manager so they can get a better decision and to solve problem and this will help them to make profit and expand.
Tesco provide walkie- talkie to their security guard to protect their premise and customer belonging in the stores. Tesco use e-mails, mobile phones, and pager and fax to communicate within their employees to pass any urgent information in terms of emergencies such as break down of machines, raw materials needed this will help them to provide good services to the customers.
Tesco writes letters to their customer about the nectar value or the amount due to them by the customers. Tesco prepares reports about the company legal obligations, which can be used for future references.
Name: Sivaruban Mahenthiran
Date: 06/12/2003
Title: Tesco Public Limited Company
. Introduction
This report is based on Tesco's organisational structure, which is a hierarchical compare with Asda organisational structure, which is a flat structure.
2. Findings
First I explained about the different kinds of organisational structure then I compare Asda organisational structure and Tesco organisational structure.
2.1 Organisational structures
There are three different kinds of organisational structures they are
. Flat structure
2. Hierarchical structure or pyramid structure
3. Matrix structure
Flat structure
Flat structure does not have more than three levels and the organisational chart is overall flat.
A business with a flat structure is likely to be relatively small and in a flat structure everyone knows everyone else, they have good communications techniques because few people are working in flat structure. They will be good at responding quickly to new ideas or specific customer requests.
The business will have some problems maintaining a flat structure as they expand. The span of control increases and the owner may need to supervise many people from the first two structures. The span of control of the owner increases from two to three in future and they may increase to five even more than that. This will bring a lot of pressure to the owner sometimes this may frustrate the subordinates.
Hierarchical structure
A hierarchical organisation is taller than a flat structure and it has many levels. The word hierarchy means systems whereby grades or classes are ranked one above the other. Sometimes hierarchical structures are called pyramid structures because they have more employees in the lower levels. In a hierarchical or pyramid structure each functional area has many staff to do a particular task and the staff that work here have specific skills and talents in their own job. In a hierarchical or pyramid structure communication can become distorted as messages pass from one level to another so staff at the bottom level receive a slightly different message than the one they should have received from the manager. In this structure many people have to be consulted before an important decision is made so the company is slow to react to changes and challenges.
Matrix organisational structure
Matrix is a different type of organisation structure it can be neither flat nor hierarchical. It is often found in organisations where they deal with different kind of special projects. In a matrix structure all the members need to communicate because they are from different kinds of functional areas and their input is needed to make a decision for a special project. In matrix everyone has special individual talents and skills in their specific department, this ensures the best possible outcome for their project. However there is a disadvantage because the people who work in the matrix structure only have specialised skills in one area so they can not get wider experience. Finally, it is difficult in matrix structure to communicate effectively and respond to any changes in the organisation.
I'm comparing my organisational structure, which, is a hierarchical structure to my partner, which is a flat structure.
Comparison between the organisational structures
Tesco Public Limited Company
Asda Private Limited Company
Hierarchical structure
Flat structure
A clear job role so you know what to do and how to do it
It also has a clear job role so you know what to do and how to do it
Good promotion prospectus because of many levels
There is less prospectus because of few levels
The span of control is less because they have more than three levels
The span of control is high because they have only three or less levels
The chain of command is more because they have more levels
The chain of command is less because they have not more than three levels
They are not quick at responding to changes and new ideas or specific customers requests because they have many peoples to consult.
They are quick and good at responding to changes and new ideas or specific customers request because they have few persons to consult
They have good delegations skills because more peoples are working here so they can assign tasks to their subordinates
They do not have good delegations because more peoples are working here so they can assign tasks to their subordinates
The communication can be distorted as messages pass from one level to another, so staff at the bottom level receives a message a slightly different message than the message they were meant to receive.
They have good communications, it is easy to speak to other people and find out what you want to know
The structure operates informally because in that everyone know everyone and there will be few formal procedures staff have to follow
The structure quite formally for example with the traditional ways of working and greater deference to senior staff
2.2
How the work is organised
By function
In an organisational chart some times job roles vary between functional areas in some functional areas, staff are senior than others and they are specialise in particular ranges of activities.
In a tall organisation the chain of command is high, but the span of control is narrow in hierarchical. If there are four sectional manager reports to the store manager then his span of control is four and the store manager is the person responsible for the four section manager he advise them and assign task to them. The messages are pass from the store manager to the section manager, and then to the bottom level of the organisation so communication can be distorted. It is difficult in tall structure to respond to changes because there are many people to consult.
In a flat structure the chain of command is low but the span of control is wide. This helps them to communicate easier and they respond to changes easily because there are few levels in the organisation and they operate formally because in the organisation everybody's knows everyone.
By geography
As the company grows bigger they have many branches and they have a head office. Tesco and Asda has many stores all over the world so there is a store manager and they are responsible for the stores entire business activity but their head office monitor their work, they give advice to carry out the aim and objective, but the store manager is given full power to make their decision. The organisational below shows how Asda and Tesco are monitored and connected by the head office.
Organisational structure of Tesco and Asda connected to their head office
Organisational structure of Tesco
Organisational structure of Asda
. Chief executive
2. Finance director
3. Marketing director
4. Human resources director
5. Commercial director
6. Logistics
7. Operations director
8. Trading director
9. Divisional director
0. Cluster coach
1. Stores
2. Stores manager
By customer
Tesco and Asda used to purchase their products wholesale but they don't have wholesales customers they have only retail customers only. Tesco used to provide tesco club cards points to their customers so they can which product have demand with the customers and they can know the difference between the daily customers and the other customers.
By product
Tesco and Asda sell their products separately such as food and household items (toiletries, fruit, drink and vegetable), photo processing, coffee shop, optician and pharmacy.
Tesco sells petrol and provide services like car wash and jet wash etc and their profit is also calculated separately.
By process
Tesco and Asda have departments based on the part and process carried out by staff. For example in Tesco the bread is produced by the workers who firstly plan what needs to be done and then this information is passed into the bread makers.
Compare the communication follow indicated on the your organisational chart and note the similarities and differences
The way in which the organisation is structured is shown on its organisational chart. This is a chart, which identifies different areas and also shows the links between them. In an organisational charts job roles vary between functional areas. In the organisational chart some staff are more senior than others. By having an organisational structure the new employees can know what job has to be done and by whom. In an organisational chart the communication is showed in terms of arrows and the link and arrow between the chart show the span of control and chain of command.
Tesco has a hierarchical/pyramid structure. In Tesco organisational chart they have more levels and they have more employees at down level. In hierarchical structure each functional area has many staff to do a particular task they are specialised in the job. Each person has a job role and there will be a specific salary for the job. In a hierarchical structure the communication can be distorted because their chains of command are long. When messages pass from top level to the bottom level they receive a message slightly different message than the one they intended to receive. In hierarchical structure the staff at the bottom level feel that the manager at the top has no idea what they think or do. In a hierarchical structure many people have to be consulted before a decision is made. This means that the company is slow in responding to changes.
The span of control is less in Tesco because they have many levels and the span of control explains the person who is responsible for you. For example if a store manager has 4 sections manager then his span of control is four. In hierarchical there is a good promotion prospectus because of many levels.
Asda is a flat structure, which has three levels so they will be good at responding to changes. Asda have good communications because few employees are working in the organisation and it is easy to speak to the other peoples and find out what did you want to know but Asda has a problem in terms of span of control because they need to supervise many peoples because of few levels. The chain of command is not long in Asda because they have few levels.
Conclusion
Tesco's organisational structure is a hierarchical structure. In a hierarchical structure the communication can be distorted as messages pass from one level to another this means that the staff at the bottom level receive a slightly a different message than the message they intent to receive it. Many peoples have to be consulted before a decision is made so the company is slow in responding to changes and challenges. This means they cannot provides quick services to their customers and it is going to affect in terms of sales and profit but there is an advantage that if everybody is consulted they will come out with the best results. In hierarchical structure there are specific functional areas and job roles. The employees can be easily identified and given training so they can provide good services to their customers. Hierarchical structure has good delegations because they are many peoples with specialised skills are working here so they can easily assign their subordinates for a particular task. The span of control is less than the flat structures. In hierarchical structures they have good promotion prospectus so the staff are motivated and they provides good services to their customers.
Tesco consider providing a good services to the customer will attract more customers this make them to increases their sales and to make more profit and expand their business and provide employment opportunity to many peoples.