In this structure decisions are made without consolation and communication is harder as it has to pass through many levels. Advantages of hierarchical structure are highlighted below:
- A clearly defined management structure. Everyone will have an official job title and know their precise responsibilities.
- A clear defined salary scale. The amount of an employee is paid will tend to rise, the higher up the hierarchy they are.
- Standard rules and procedures on hours of work, arranging annual leave, job appraisal, promotions, discipline, etc.
- Every one knows what they are doing, it saves time.
- Matrix structure:
This is an example of matrix structure. A matrix structure is often used by organisations that work on projects e.g. builders, architectures etc. Each project team will get its support from the business functional areas e.g. finance, HR and marketing etc.
In a matrix structure, employees with different skills are borrowed from different departments within the organisation to from project teams- for example, to create and launch a new product, or to install new computer equipment.
Matrix structure is different to other structures because member of staff can belong to department, for example marketing and also to a project team working together to carry out a specific task.
Functional areas:
Within the Organisational structure, there will be the various functions of the business. E.g. Finance, Sales and Marketing and Human resources.
Finance:
Finance department is responsible for keeping records and accounts, for giving advice on budgets to other departments and for paying wages and salaries. The finance department also works to prepare a report on daily sales figures of each branch.
This department carries out paper work as well. They produce paper work for employee’s wages and a balance sheet. They also sort out the profit or loss accounts that company has made. The finance department is also responsible for paying local authority business rates.
Sales and Marketing:
This department is responsible for selling products or services. Marketing department is responsible to get views and feedbacks of customers. They do a survey to find out customer’s views and feedbacks, they ask questions directly and give out comment cards.
Marketing department carries out market research. In market research they find out that which product are sales growing and how they can maintain this, And which product are sales declining and how can they renew interest.
Human resources (HR):
Human Resources deal with the recruitment of new staff. The recruitment process involves the training and induction of any new members of staff. Human Resources are also responsible for health and safety.
This department evaluate all the application forms and pick-up the members who are suitable for the company. HR will inform the candidates that have been short listed for an interview, and then the department will inform the candidates by phone or letter.
Job roles:
The organisational structure will also show the job roles within the organisation. These job roles can be categoriised into these key job roles:
Key job roles:
Managing Director:
The role of a Managing Director (MD) is to design, develop and implement the strategic plan for his company in the most cost effective and time efficient manner.
Directors:
Their responsibilities involves in strategic planning, making important decisions and make sure the organisation is working legally. They also need to make sure that all business targets are received and shareholders interest is safe and right.
Managers:
Managers break your job as a manager down into its components—planning, organising, staffing, directing, and controlling. Some activities that carried by managers are highlighted below:
- Monitor staff
- Make sure departments are working well
- Pass on information to staff from director properly
- Carry out instructions from directors
Supervisors:
Responsibilities of a supervisor includes:
- Make it clear that job performance is the issue
- Set up a plan for improvement and monitor
- Explain the help available
- Make sure that health and safety regulations are observed properly
Operatives:
Operative’s works under the supervisors. Their duties involved in various tasks which are highlighted below:
- Carry out duties in job description as shown at interview
- Follow instructions of supervisor and Managers
- Follow health and safety regulations properly, don’t take any risks
- Work well with other staff
Betta value introduction:
Betta value stores is a super market located at Ashton-under-Lyne, Manchester. It was started 10 years ago by Mr. Steve Turner, who set up the business in a corner shop with one part-time assistant working on the till in the afternoons. To begin with, Mr. Turner did all other work himself.
Over the years, the shop became so successful that he had to take on more staff and move to much larger premises in the centre of town. As it grew, an organisational structure evolved. The current structure is shown here.
The organisational structure of the Betta Value store is still flat because as we can see the chain of command is short as it only has 3 levels. Now Mr Turner is the managing director and his span of control is 3 departments which means he is responsible for the level under him which is the store manager, human resources manager, finance manager.
The store manger is responsible for 5 checkout staff, 8 shelf stacker, 1 delicatessen assistant, 1 home delivery officer, 1 cigarette and lottery assistant and 2 warehouse/ storage officer. The store mangers total span of control is 19 staff.
The current organisational structure is more complex because although it still has a short chain of command and is a flat structure it is far more complex as there are more employees and more job roles.
Personal Attributes:
Personal Attributes are the personal qualities that different people have which they bring to the job.
All job roles don’t require same personal attributes, they required different personal attribute such as:
Personal presentation:
Personal presentation depends on the appearance of each employee and their personal hygiene. This is important whether or not there is a related policy or dress code.
Verbal communication skills:
All employees’ needs to communicate with other people from senior managers to their own colleagues within the organization, as well as external customers and contracts this is why verbal communication is important.
Written communication skills:
It must be clear to read so that messages can be clearly understood,
Spellings are not missing from emails or errors and all communications sent externally gives a good impression of the organisation.
