Unit 1 Pass 3 How Businesses Are Organised

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Unit 1 Pass 3: how businesses are organised For this unit l will describe how businesses are organised focusing on Sainsbury’s and the World Wide Fund for Nature charity. l will also describe the business structures they use. Hierarchical structure: a Hierarchical structure is a leadership structure used by most businesses because it’s easier to manage a large business using the structure. The structure resembles a pyramid with all major decisions coming from the persons at the top. in this structure employees are ranked at various levels within the structure. The higher you are on the chain the more power and responsibility you have within a business. Sainsbury’s: the organisational structure used by Sainsbury’s is the hierarchal structure. It allows them to be very efficient because every level of the hierarchy is defined so there is almost no chance of employees not knowing their main responsibilities. The hierarchical structure is good but it has disadvantages as well for example employees from the bottom of the chain are not able to contact the Sainsbury’s board of directors to discuss the problems that affect the whole company from their perspective. Everything has to travel from level to level before it reaches the appropriate departments e.g. Production, IT, Sales departments. Sainsbury’s use the traditional hierarchical structure, which clearly defines each employee’s role within the organisation; it also defines the nature of their relationship with other employees. Using this hierarchical structure offers a lot of benefits and advantages when a business becomes as big as Sainsbury’s. These include: A clear way for promotion: Sainsbury’s employees know where to go when it comes to promotion because of their hierarchical structure. The next step in their employment ladder is obvious which motivates them to move into bigger roles and also keeps them
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