The disadvantages of hierarchy structure are:
- Decisions can often take time to follow the chain of command
- Employees can be demotivated if there are considered as at the bottom of the hierarchy.
- Decisions may be made by a few that are not in the interest of everyone on the organisation.
Flat structure
Source: Lecture notes: 21/10/05: Forms of Business Structure.
This is the flat organisation structure. In this structure there are fewer management tiers therefore manager are more responsible for staff rather then hierarchical structure. This means more people hold similar positions of responsibility within the business. There are many advantages and disadvantages for an organisation having flat organisational structure.
The advantages of flat organisational structure are:
- Fewer tiers that means easier communication
- A short chain of command making the decisions to be implemented quickly
- Employees may be motivated to being able to make decisions.
The disadvantages of flat organisational structure are:
- The organisations may lack direction if too many people in the organisation have a say in running the business
- Decisions may take time to be made if many people may wish to comment
- There may be confusion over responsibilities and things may not get done
- Staff becoming Uninspired because of no chance of promotion
Matrix structure
In this structure the department has links, which make it look like web. Teams are formed from each of functional areas, so that team working across all areas can take place. This structure is most commonly used in businesses where project work is needed. Team members are taken from all areas of business to provide their own areas of expertise. Management in this structure can be quite difficult as different manager from different areas are working together.
Advantages of matrix structure
- Project managers are directly responsible for completing a project
- High level of motivation
- Easier Communications were specialist can contribute to new ideas
Disadvantages of matrix structure
- There can be conflict between line managers and project managers over the allocation of resources.
- With manager having more authority it would be difficult to control them.
- It can increase staff costs as more mangers are created.
Source: BTEC national book PG 61
Here is diagram for matrix organisational structure
Source: Lecture notes: 21/10/05: Forms of Business Structure.
After researching I have found out that the main structure that Tesco operate in is Hierarchy I think that this is a good structure mainly this is because there are more advantages then drawbacks plus this is a good structure t operate in for a big company like Tesco.
Task2 B: Describe ways in which a manager’s role includes the management of resources within the organisation that you have selected
In a business managers are given training on how to become a leader. This is because if a manager of a company is a well-trained leader then he will have the skills of controlling the workforce and would assist to steer the company forward into the right direction. Leadership is the process of influencing group activities toward the achievement of goals. Leader influence and change the way people think about what is desirable, possible and necessary. There are four different types of leadership and management style, which have a different effect. Some are positively good for the business and some are negatively good for the business.
What does a leader have to do?
- The roles of a leader are setting goals then moving the business towards them.
- Leaders have to earn authority to lead
- Developing and motivating individuals and groups
- If a problem arises take control of it.
Here are the following example of leaderships and management styles:
The autocrat
The autocrat has little confidence in his subordinates and distrusts them. He makes most of the decisions and passes them down the line. He makes threats where necessary to ensure that his orders are obeyed. The good thing about a manager having an autocrat style of leadership is that by this style he will be able to control the worker in doing their job. He will be very organised, punctual and hard working. Which would help the organisations in many ways.
The benevolent autocrat
The benevolent autocrat sees himself as a superior father figure who makes all the important decisions and then convinces his subordinates to go along with them. He may allow some decisions to be made by some subordinates within the framework, which is set by him. The good thing about a manager having a benevolent autocrat style of leadership is that this type of manager is very confident about the decisions that he makes, which would help the business in having a self motivated manager.
The consultative democrat
The consultative democrat has confidence and trusts in most people and communicates and consults widely with his employees. Before making decisions he will seek the views of his coordinates, but he or she will have the final say. The good thing about a manager having a consultative democrat style of leadership is that this type of manager style will take good care of his subordinates and will help them to become motivated into working by asking them about the decisions.
The participatory democrat
The participatory democrat has complete confidence and trusts in his colleagues. When a major problem arises or decision has to be made, all the relevant actors are called to discuss the issue and majority of the view is taken as the final decision. The good thing about a manager having a participatory democrat style of leadership is that this type of manager would never make a wrong decision because as he consults and communicates with his coordinate before making the decisions.
In a managerial role there are four main resources that a manager has to report for these are
There are four types of resources involved into a business these are:
- Physical resources
- Human resources
- Financial resources
- Technological resources
Now I will briefly explain these types of resources:
Physical resources
This is the resource which involves activities that a business needs to carry out this involves buildings and facilities. Physical resource includes planning maintenance and refurbishment of buildings and organising insurance and security.
Human resources
Human resources department is built for handling with people. There are many activities involved in human resources department like
- Hiring and firing people
- Teaching their staff professional cultures
- Health and safety
- Monitoring performance.
Financial resources
In this department the main aim is to avoid from the business to become bankrupt and to avoid this they have to make sure that the business is financially sound and to learn this they have to do many accounts like profit and loss account.
Technological resources
A technological resource is all about problem solving. Technological resources are things such as software, design, music or text, which are known as ‘intellectual property’. The main activities for this department are to protect all of its product and services from being copied by the competitor.
Task2 C: Describe with examples how the management activity can raise performance in the organisation.
The managerial activities that are carried out within the business are very useful for Tesco as this gives them a better chance in improving their performance by focusing on different aspects of the business. There are many managerial activities, which will help raise the performance of the organisation, and here are some of them:
The designs and marketing department activities have raised the performance of Tesco by researching the global market to find out who buys the products and what are they looking to buy. These two departments work together in order to agree on new products to launch and decide on which media should they use so that they will be able to increase customers and keep them satisfied.
The management of the four resources and making sure that they are running smoothly, which would affect the business positively in long term.
An appraisal is another activity that a manager needs to have with their employees. Appraisals are when a manager and the employee sit down in private and discuss the target which had been set according to their strengths and weaknesses and monitor whether they have been met or not and if they have then they move to the new targets and if they haven’t been met then analyse why and find a better solution to meet the targets set.
Having interpersonal skills is very important for a manager because if a manager hasn’t got interpersonal skill then he/she wouldn’t be able to communicate with the employees and wouldn’t be able to solve the problems that they have, which would lead to targets not being met. This can help raising the performance of the business because if the employees are understood and have no problems then they would work harder.
All of this put together will help each individual employee to achieve their targets which in turn will help that department to achieve its set targets which will then help the business to achieve its objectives and aims.
Task2 D: In evaluation, evaluate the role of management in improving the business performance of the selected organisation.
Business performance is when a business gives their employee appraisals so that the employees would know that they are being recognised as a whole in the company in achieving their overall aim. This is so that the employees would be aware that they will be awarded for their hard work which is being recognised by the business e.g. Tesco give their employees incentive by giving their hard working workforce £10 Tesco voucher which can be spent on the products bought, this helps them gains better communicational relationship between co-ordinates and subordinates.
To evaluate the role of management to see if he/she is successful, a business has to look for many things like:
- Is the work force happy with him.
- Is the sales increasing.
- Is the work getting done to the maximum standards.
- Is he the people’s person e.g. understanding the workforce.
- Is the staff working efficiently.
- Is he a role model.
- Is he is following the rules.
- If he can solve the problems arising.
- If he treats everyone equally.
I think if all the key elements highlighted above about the key role of the manager are contained within him. Then the manager can help the business in improving the business performance in long term. This is because if he has the key skills required then he would be able to communicate better with his subordinates and help them in achieving the company’s objectives as a team. The key roles above are like duties, which are the requirements that a manager needs to be doing if, he wants to become a role model and become a better leader.
Summary
For this task I had to investigate the key role of management, which would help in increasing the sales for Tesco.
I think if Tesco has a manager that has the key skills required like the information provided above then this would be a wise choice to hire him as he will be a benefit to them and become a highly qualified asset that will help them in achieving their overall aim by dedicating himself to getting the work done to the best standards by himself and his subordinates.
By doing this task I have found out that would without motivation staff wouldn’t be dedicated enough to work hard in achieving Tesco aims.
Recommendation
I recommend Tesco to keep on motivating the staff to achieving the best standard of service provided to the customers. I also recommend Tesco to give chance to the employees to become promoted as this will also help them in becoming motivated.
Bibliography
Books: BTEC national book
Pages within the book used
PG 61
Lecturers Notes: Uzma Mirza
21/10/05 (forms of business structure)
