Discuss Structures Of Organisations Commerce Essay


Organisations are structured in a variety of ways, dependant on their objectives and culture. The structure of an organisation will determine the manner in which it operates and it's performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees.

The wrong organisation structure will hinder the success of the business. Organisational structures should aim to maximize the efficiency and success of the Organisation. An effective organisational structure will make easy working relationships between various sections of the organisation. It will retain order and command whilst promoting flexibility and creativity.

Internal factors such as size, product and skills of the workforce influence the organizational structure. As a business expands the chain of command will lengthen and the spans of control will widen. The higher the level of skill each employee has the more the business will make use of the matrix structure to maximize these skills across the organization.

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Span of Control

This term is used to describe the number of employees that each manager/supervisor is responsible for. The span of control is said to be wide if a superior is in charge of many employees and narrow if the superior is in charge of a few employees.

Different Structures

The most common organisation structures are:

Tall- The tall organisational structure is used in a company which has many departments with a number of staff. The tall structure has many levels of management (Director, department Management). The organisational structure organises the top management from the top of the structure down to the workers at the bottom of the structure.

Manager Director













Tall Organisational Structure


Clear Management Structure

Each level will be clear and understandable

Clear lines of roles and responsibilities

Employees are supervised

Clear progression and promotion ladder


Decision making would be slow as approval may be required by each level.

Managers at different levels are paid more money the higher they are on up the structure.

High Management costs because managers tend to earn more money than lower management.

Communication would have to take at each level.

Flat Structure: The flat organisational structure can also be known as a horizontal organisation. There is a level in the structure but there is no level between the staff and managers within the organisation. The most experienced staff is involved in making decisions. The structure is normally used with a small organisation or within small part of a large company. All organisations begin with a flat structure however with growth and the size of the company it becomes a hierarchical organisation structure.

Also with the use of the flat organisation structure decision making is mostly involves member of staff which has experience in the field. Every employee input and feedback and opinion taken into thought. The flat structure allows managers and employees to interact and communicate on a regular basis which means all the employees and managers work as team.


Less Rules and Regulations

No Levels

Communication between employees and managers is great

Easy to Understand

Good team Spirit


Each job would have to be completed as a team because nobody has created a project plan on completing the project.

Nobody has be assigned a task or job

Employees may have more than one manager

Manager Director





Flat Organisational Structure

Hierarchical Structure:- Hierarchical structure is very similar to the tall structure because the lower ranked work force or employees are at towards lower end of the structure. The higher end of the structure would be the managers, directors and stakeholders. In a hierarchical structure employees are ranked at different levels within the organisation, the levels are one above each other. At each level there are a number of workers.


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Easy to gain promotion

Employees are loyal to their department

Roles and Responsibility are clearly defined


Communication can with higher levels will be time consuming because of the many levels

Respond slowly to changing customer needs

Board of Directors




Compare different management styles

Management styles- In a management text books the most three management styles are democratic, autocratic and consultative. Selecting the correct management style may lead to greater motivation and productivity from your staff. Managers personalities and characteristics will influence the type of style adopted.

Democratic Management Style

A democratic manager hand over authority to his/her staff, giving them responsibility to complete the task given to them also the staff will complete the tasks using their own work methods. However, the task must be completed on time. Employees are involved in decision making giving them a sense of belonging and motivating individuals. Because staff feel a sense of belonging and are motivated the quality of decision making and work also improves. Although its popular in business today, a democratic management style can slow decision making down because staff need to be consulted. Also some employees may take advantage of the fact that their manager is democratic by not working to their full potential and allowing other group members to carry them.

Autocratic Management Style

An autocratic manager be in charge of orders to their staff and makes decisions without any consultation. The leader likes to control the situation they are in. Decision are quick because staff are not consulted and work is usually completed on time. However this type of management style can decrease motivation and increase staff turnover because staff are not consulted and do not feel valued.

Consultative Management style

A consultative management style can be viewed as a combination of the above two. The manager will ask views and opinions from their staff, allowing them to feel involved but will ultimately make the final decision.

Laissez Faire Management style

A laissez faire manager sets the tasks and gives staff complete freedom to complete the task as they see fit. There is minimal involvement from the manager. The manager however does not sit idle and watch them work! He or she is there to coach or answer questions, supply information if required. There are benefits, staff again are developed to take responsibility which may lead to improved motivation. However with little direct guidance from the manager staff may begin to feel lost and not reach the goals originally set within the time frame.

Look at motivation of staff and how this is affected by management attitudes, organisation culture and possibly the size of the business.

Douglas McGregor, is a American social psychologist, proposed his famous X-Y theory in his 1960 book. Theory x and theory y are still commonly in the field of management and motivation, and McGregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques. McGregor's XY Theory remains central to organizational development, and to improving organizational culture.

McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten. McGregor maintained that there are two fundamental approaches to managing people. Many managers tend towards theory x, and generally get poor results. Enlightened managers use theory y, which produces better performance and results, and allows people to grow and develop.


Theory x ('authoritarian management' style)

The average person dislikes work and will avoid it he/she can.

Therefore most people must be forced with the threat of punishment to work towards organisational objectives.

The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

Theory y ('participative management' style)

Effort in work is as natural as work and play.

People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment.

Commitment to objectives is a function of rewards associated with their achievement.

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People usually accept and often seek responsibility.

Take two relevant structures / cultures/management styles that would appear to be opposite to each other and suggest how this is would have an affect on the way information flows through the organisation.

Organisations are structured in radically different ways ranging from relatively fixed structures with positions, rules, and established chains of communication to dynamic structures in which people belong to teams that are continually being formed and reformed for the duration of a project.

Typical ways of organising people are:

By function - dividing the organisation up into groups with similar specialism's.

By product - grouping people together according to the product they make.

By process - grouping people together according to the processes that they are carrying out.

The organisational structure in which Sainsbury's uses is how

Sainsbury's move the ranks from highest to lowest. For Sainsbury's to

not have levels of different hierarchy then it would not give anybody

a rank, which would make the aims of Sainsbury's not do well in terms

of not having someone to be a manager and manage all the staff and

make decisions. Without the chain of command workers would be lost and

would not know what to do. The way in which the hierarchal structure

works for Sainsbury's is that they have one Manager who looks after

all of the operational staff by making the decisions of what they

should do and guiding them with any queries or problems.

The hierarchal structure in which Sainsbury's has yet not been put

down in terms of not working as they are very good in their selling of

products and fails not to impress by being one of the most popular

product chains in the UK as well as making a lot of profit on there

way to success. The management style in which Sainsbury's uses is

autocratic where as explained before that there is only one manager on

the store floor who watches over the other operational staff who are

making orders from customers and serving the customers at the tills.

Suggest what issues effect building a culture where innovation and creativity is encouraged and rewarded.

The first step to developing a sound strategy to link the sales force to the process for innovation is to formally define the typical steps in the current selling process. This might appear to be a relatively easy task making the selling process clear. There are, however, some pitfalls. What needs to be understood and concisely defined are the aspects of the selling process where the best salespeople interact with customers and prospects to help them define their needs and identify selling opportunities based on what is commonly referred to as value-added solution selling. The opportunity to apply value-added solution selling comes from a strong customer relationship where the salesperson is viewed by the customer as a true partner in the business. This level of customer relationship takes time to achieve and, typically, the best salespeople are the ones who successfully develop these types of customer relationships.

By looking closely at how those salespeople sell when the environment is encouraging to selling solutions. Begin to understand how those salespeople conduct a customer needs analysis and also begin to compile information on what those customers are expressing as their needs or problems. Future needs are the wish list that customers begin to identify as the salespeople conduct a formal needs assessment. These applications and modifications can open the door to new markets with minimal investment. Other needs will require more extensive investments, which lead to product and service innovation, keeping ahead of the competition. An individual will also begin to understand the problems customers face. The organization may possess the capability to solve some of those problems through products and services.

Identify the types of business structures and management styles that support staff involvement in generating ideas and expressing their opinions to improve the business.

The employee does not have a responsibility to manage change - the employee's responsibility is no other than to do their best, which is different for every person and depends on a wide variety of factors (health, maturity, stability, experience, personality, motivation and many more). Responsibility for managing change is with management and executives of the organisation - they must manage the change in a way that employees can cope with it.

Here are some rules for effective management of change. Managing organizational change will be more successful if you apply these simple principles. Achieving personal change will be more successful too if you use the same approach where relevant. Change management entails thoughtful planning and sensitive implementation, and above all, consultation with, and involvement of, the people affected by the changes.

Which type of business environment would you prefer to work in?

I would like work on healthy environment. I would prefer to work for a large company, but in a small satellite office for them. Working in a small office you get the sense of family and make close friendships while having the benefits that only a large company can provide. Great insurance, good pay, room for growth and stability

At a small company the benefits are not there as much. There might not be any heath benefits, lower pay and the company itself might just fold to a larger competitor.