Organisational structures. Case Study: the structure of HSBC

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Case Study: the structure of HSBC

Analyze the key issues in designing an effective organizational structure for a multinational business employing 254000 people. (8)

Organizational structure is a layout of ideas and decisions that a business makes to develop a coherent and effective working environment, for instance, a business would decide upon the people who would have the authority and responsibility within the organization. These people would then develop an easy way of approaching employees in the business and vice versa. Therefore, every employee in a business would be assigned with a role and responsibility; however, directors and managers would be kept as seniors and would take up the responsibility of managing the needs of employees so the objectives that are set by the business are achieved on time.
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In this respect, managers in a business would consider a number of key factors when designing the organizations structures, such as ‘Business size’, this would be an important key factor in this aspect. This is because it is inevitable for a successful business to grow in near future. When this change takes place the numbers of employees also grow to collaborate with the workload. Hence, in this situation the manager will devise a structure that gives authority to those in lower in the organizational structure so every employee has the freedom to communicate with others at all levels.

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