Their tall organisational structure is also an hierarchical structure because it contains a chain of command which basically means that different levels of the structure have different authorities, the level with most authority is at the top and the level with less authority at the bottom.
These are some levels from HSBC’s organisational chart:
- Shareholders
- Board Members
- Human Resources
- Cash centre
- Operations Department
- Marketing department
Advantages of a tall organisational structure:
- Employees are closely supervised (narrow span of control)
- Clear progression and promotion opportunities
- Clear management structure
Disadvantages of a tall organisational structure:
- Employees have less freedom
- Management costs are higher
- Decision making is slower
FUNCTIONAL AREAS:
HSBC’s organisational structure contains 7 functional areas, they are the following:
- Risk Management:
- Financial Control Department
- Operations Department
- Humans Resources
- Commercial banking department
- Treasury Department
- Personal Financial Department
Each one of these Departments is vital to the good management of the business.
One of the most important functional areas is Human Resources.
According to Wikipedia Human Resources definition is “... a term used to refer to how people are managed by organizations”.
This is a key element because business doesn’t run without people.
These are the key functions of Human Resources:
- Recruitment and Selection
- Redundancy
- Industrial and Employee Relations
- Record keeping of all personal data
- Total Rewards: Employee benefits and compensation
- Career development
- Performance appraisal
Workers many times use Human resources so their “voice” can be noticed and their demands are listen by higher member of the company.
All issues with the personnel are solved by Human resources.
Communication in Business
According to the book “GSCE Business Studies third edition” the term communication means “... the process of converting information from one person to another in such a way that an accurate message is received and can be acted upon.”
In a business way communication can take place in 4 ways (organisation chart)
Upwards Communication:
Upwards Communication is when a subordinate sends information to his superior, e.g. when a worker sends information to a supervisor.
This type of communication is used more often in small businesses, in large businesses they use different methods such as suggestion schemes and quality circles.
Downwards Communication:
Downwards Communication are sent from above (of the organisational chart) to the workforce, e.g. from a supervisor to a worker, generally the information passed is a decision, instructions and policies.
Downwards Communication gives the workforce to have a vote in the matter, to influence the final decision.
Horizontal Communication:
Horizontal communication is between people from the same hierarchical level.
The information passed is normally difficulties and information about procedures.
Diagonal Communication:
Diagonal Communication takes place with people at different levels from different
Departments, e.g. information is passed from a negotiating sales and the office manager.
At HSBC they use all kinds of communication possible such as:
-
Oral Communication: Face-to-Face communication, holding a conversation in person.
Advantage: The message is clearly communicated and feedback is immediate.
Disadvantage: Non-verbal communication may act as a barrier to effective communication.
-
Written Communication: As the name indicates is a information that is passed via any type of written document e.g. notices, bulletins and memo.
Advantage: Information can be presented in a variety of ways using images and graphics which makes comprehension easier.
Disadvantage: Even though they are sent to all workers some may not read newsletters.
-
Electronic Communication: Information sent via any ICT system e.g. fax and e-mail.
Advantages: Messages can be sent and received quickly.
Disadvantage: Not all receivers may have access to Fax or e-mail.
