P3- How businesses are organised.
and P4- How the style of organisation helps to fulfil their purposes. My two organisations are H&M (profit-making) and MAA (non-for-profit), as researched in Task 1. The purpose of having an organisational Structure:
Division of work:
Division of work is essential in any type of organisation, big or small, everything has to be organised and carried out with care. H&M is a very large international business, therefore a lot needs to be completed and managed, as any ‘slip-up’ could cost the business a lot of money. Dividing up the work between the departments will mean that all the tasks that need to be completed, are done so with great detail and to a good standard in required time to keep the business at the peak of its success. An example in H&M would be, that every department has a deadline by which they have to have done their part of year report for the Annual Report, so all the departments are doing different tasks and writing about their year, but in the end it’s put into one big annual report to be used as progress check and presented to some of the stakeholders such as the shareholders and the head office. MAA is described as a medium sized business; yet the work is still divided between the departments so that all tasks are completed on time and up to a good standard, the difference is that there is much less staff in each department and some staff have more than one type of responsibility within the business. The Finance and The IT support carry out their job separately, but if new IT equipment or computers/hardware needs to be bought, the department doesn’t just buy it, they consult the finance department and have to get permission for the money to be spent. They have to put the reasons forward as to why the equipment is needed. Lines of control and communication:
There’s always a structure to success. If there was no structure in an organisation then a lot of jobs would not be carried out at all or not carried out to the best standard. Also some of the decisions made by different departments and different people could contradict and therefore cause conflicts within the organisation which could result in a ‘clash’ and therefore a huge loss or even bankruptcy in very large organisations depending on decisions made. This is why meetings are held within departments, and then they’re reported to other departments and the person/people that are responsible for them (going up/down the line of power). This communication within the business is very important. In H&M new policies and highest levels of decision making (such as strategic decisions) are carried out by the shareholders and Annual General Meeting body. These decisions affect the other people within the organisation will be working and organising their tasks; the new changes would be delivered to Board of Directors and Managing Director and fifteen other individuals. (Corporate Governance Report, 2013) In MAA the decision making is done by the Trustees who are the directors of the company; after decisions are made, they’re passed onto the head of the school where he/she then passed the information and decisions made down the academies line management. Structure Types:
There are many types of structures in organisation; here are some examples of them: Functional: This is where the organizational structure is where people with similar knowledge and skills are grouped together and have a person in charge of them. This works well in small companies as it helps develop the employees to be specialist in their field (specialization increases the speed and confidence of the employees for the tasks being carried out); but there can be some issues such as the communication across the employees horizontally is not maintained well, which can slow down decision making. This also compromises the level of communication/cooperation between the functional units which can slow down a lot of work and bring down the production levels....
Bibliography: Annual Report . (2013). Retrieved from http://about.hm.com/content/dam/hm/about/documents/en/Annual%20Report/Annual-Report-2013_en.pdf
Corporate Governance Report. (2013). Retrieved from http://about.hm.com/content/dam/hm/about/documents/en/Corporate%20Governance/Corporate%20Governance%20Reports/Corporate%20Governance%20Report%202013_en.pdf
Corporate Governance Report . (2013). Retrieved from http://about.hm.com/content/dam/hm/about/documents/en/Corporate%20Governance/Corporate%20Governance%20Reports/Corporate%20Governance%20Report%202013_en.pdf
About H&M . (2014). Retrieved from http://about.hm.com/en/About/facts-about-hm.html#cm-menu
Business Concept. (2014). Retrieved from http://about.hm.com/en/About/facts-about-hm/about-hm/business-concept.html#cm-menu
Company Management. (2014). Retrieved from http://about.hm.com/en/About/Corporate-Governance/Organisation/Executive-Management-Team.html
MAA About. (2014). Retrieved from http://www.malcolmarnoldacademy.co.uk/s/about-us
MAA Homepage. (2014). Retrieved from http://www.malcolmarnoldacademy.co.uk/
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