I am going to describe the organisation that businesses have while investigating the organisational structure of Tesco and British Red Cross, and how this structure helps to achieve their aims and objectives.

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Lewis Appleton 1 Miss Johnston
Introduction
I am goingto describe the organisationthatbusinesseshave while investigatingthe organisational
structure of Tescoand BritishRedCross,and how thisstructure helpstoachieve theiraimsand
objectives.
Why it is important for businesses to be organised
It isimportantfor businessestobe organised becauseitmakesiteasiertorunthe business.Itis
importantthatto be organisedtheyuse anorganisationchart,thisisbecause ithelpstogive a clear
definitionof the jobrolesandresponsibilitiesthatare assignedtodifferentsectors.The chartalso
showswhoruns whatinthe organisationanditcontrolsthe activitiesthattake place withinthe
organisation.If businesseswere notorganisedthenitwouldn’tbe efficientasthe employeeswill be
cluelessof whattheyhave todo andwho theyhave to doit for.
Organisational structure
Organisational structuresare whatbusinessesneedtouse toensure theyare able tomeettheir
purposesefficientlyandsuccessfully.These structureshave differentpurposesforeachbusinessbut
theyshouldbe designedtomake sure thatthe workthat businesseshave todois dividedtogive
each memberof staff a fairamountrelatingtotheirjobpositionandtheirwages.Theyalsoneedto
establishthe linesof control andcommunicationthatthe businesshaswhichIwill explaininthe
nextpoint. These structuresare alsoimportantof the control of businessactivitiesthatare
organisedandensuringthatconflictisavoidedbetweenstaff andthatthe staff are able to
individuallymake theirowndecisionsthatwill notconflictwithanyothers.
Line of control
The line of control is where the individualsinabusinessare responsible forthe actionsanddecisions
of eitheraline managerora supervisor.The more importantandcrucial decisionsmade are the
seniorcolleaguesresponsibility.Thisisoftenusedinaformof chainof command.Before takingany
actionsthe lowerpositionswithinthe businesswillhave tonotifythe seniormembers of staff first.
Different types of organisational structure
Businesseswill use differenttypesof organisational structure,these include;
Function
Businessesmaystructure theirbusinessbyfunction.Thismeansthattheyhave toarrange different
parts of the businessaccordingtowhatthat sectionof the businessdoes,dependingonthe type of
the business,the size of howbigthe businessisandhow the structure isgoingto be usedforthe
business.Sometimesitmaydependonif the businesswantsto meeta specificpurpose suchasthe
rate of productionthatthe businessneedstohave,the marketthatthe businesswantsitproducts
to go intoor the accounts that the businesshave.

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Lewis Appleton 2 Miss Johnston
Geographical
Businessesmaystructure theirbusinessesusinggeographical organisationwhichmeansbyarea.
Thismeansthat the organisationmayhave one mainbrandname but several smallerpartsof the
organisationwhichare onlyincertaincountriesandareas.
Product groups
Businessesmaystructure theirbusinessesusingproductgroups;thismeanstheywillorganise tosuit
the customer’sneedstothe differentproductsthattheyhave made. Thismeansthata businesswill
needtoorganise where theirproductsare intocategoriessuchasif theysell manytypesof food
theymay sortthemintocategoriesthatsuitthe customer’sneedsratherthanjust“food”.
Customer type
Some businessesmayorganise theirstructure usingthe type of customers,thisissimilartoproduct
groupsbecause theywill have differentsections thathave todeal specificallywiththe enquiriesthat
the customershave andwill needtodeal withsome customersindividually.
Example
Function
A businessthatwill use thistype of organisational structure isTesco.The advantagesof usinga
structure by functionisthateach sectorof the businessisable tofocusontheirobjectivesthatthey
have beengiven,foreachsectorof the businessthere issomeone thatisresponsible forthe work
levelsandthe employeesare able toknow whatthe rolesare of the othercolleagues.The
disadvantagesof usingafunctional structure isthatthe employeeshave alow level of
communicationwiththeircolleagueswhichcouldleadtoa lackof the focuson the work theyare
meantto be doing,the sectorsmay be hard to change,itmay take a longperiodof time forthe
sectorto actuallybecome coordinatedandthere isagap betweenthe highersectorsof the business
and the lowersectors.
Geographical
An example of thisisthe RedCrossbecause theyhave the British RedCrossisBritain,the American
RedCross inAmericaandthe IndianRedCrossinIndiaand itssurroundingareas.The advantagesof
usinggeographical organisationare thatthe organisationisable tosatisfythe local communityand
meettheirneedsbetterthantheywouldbe able toif theywere one bigorganisation,theyare able
to keepa positive competitionwiththeircompetitorsandtheyhave abettercommunication
betweenthe organisationitselfandthe customersthatare local to it.The disadvantagesof using
thistype of organisationare that the organisationmayhave conflictsbetweenthe managementthat
islocal and the central managementandthe organisationwill needahigheramountof resources
and functionssothatthe organisationcanrun in manyplacesat once.
ProductGroups

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Lewis Appleton 3 Miss Johnston
An example of abusinessthatusesthistype of organisationisNestle,theyhave organisedtheir
productsintocertaincategoriessuchas chocolate,cereal,drinks,chilledmeatsandice cream.They
have onlyused“drinks”as one of theircategoriesbecause theydonothave as manydrinkproducts
and therefore theycannotbe splitintomore categorieswhere the foodwas.The advantagesof
usingthistype of organisationare that the organisationhasa clearview of how theycan meettheir
customers needsusingthe marketsectortheyare in,withtheirdivisionstheycanhave a
competitionthatispositiveandthe organisationhave abettercontrol overeachsectionbecause
theyare able togenerate separate profitsthatcanbe putback intothe business.
CustomerType
A businessthatmaysell theirproductsaccordingtotheircustomersneedsmaybe one suchas Tesco
because of the many productstheysell,thatiswhytheyhave several differentsizedstores;tomeet
the needsof the customersinthat area.
Flat structure
A flatstructure iswhere an organisationonlyhasafew such as twoor three levelsof jobrankingand
isusuallyusedbysmall businesses.Anadvantage of businessesusingthistype of structure isthatit
givesthe employeesempowermentandtheyall gettheirsay.Thistype of structure can increase the
rate of productivityandreduce the amountthata businesswill have topayoutfor manylevelsof
management.Flatstructuresare difficulttouse in large businessesbecauseitcanmeanthat the
managersmay notget all the powerthat theywant,therefore thisisonlyeffectiveinsmall
businesses. Asbusinessesstarttogrow itbecomesmore difficultforthe one managertocontrol
everythingandtherefore theymayswitchtoa hierarchical structure.Businessesthatuse flat
structuresusuallyemploysomeone tobe a supervisororhave anassistantmanager.
Hierarchical structure
A hierarchical structure ismuchlargerthan a flatstructure is andit can have several layers of job
ranking.The jobpositionsthatare in thistype of structure are alsomore specialisedastheyhave
more specificdutiesthantheywouldinaflatstructure.The staff that are putintothisstructure are
placedindifferentdepartmentsinthe businessthatisspecifictocarryingoutcertaintasks.Many
large businessesuse thistype of structure because itbecomesdifficulttouse aflatstructure as a
manageralone wouldnotbe able to manage.Thistype of structure is alsousedinotherareas such
as the Government.
Span of control
Organisationshave aspanof control and itis whatmeasuresthe quantityof the people thatan
individualhasresponsibilitiesforwithinthe organisationtheyare in.if there are more people that
the individual hasresponsibilitiesforthenitmeansthatthe span of control will be wider.Ina
businessif amanagerhas responsibilitiesformanypeopleitmaymeantheywill be forcedto
maintainstandardsata level whichcanstopthe managerfrom beingable todo theirjobcorrectly,
and theywill be unable toperformtheirdutiestothe bestof theirabilities.Thisalsoappliestoif the

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Lewis Appleton 4 Miss Johnston
managerhas little people tomanage andtherefore theirabilitiesmaybe wastedwhentheycanbe
tryingto do betterthings.
Functional areas
The functional areasina businessare whatsectionoff the areasthat deal withspecificareas.The
areas thatare withinabusinessare;finance,marketing,production,customerservice,sales,and
humanresources.
Finance
The finance departmentoftendealswithkeepingthe datarecordsheldonfinancial transactions
such as the salesthatthe businessmaybackina year.The departmentalsodealswiththe provision
of informationtothe higherjobpositionssuchasmanagerssothat the decisionstheymake canbe
influencedandimprovedsuchashowmuchit may costto start productionof a certainproduct.The
accounts departmentinabusinessissupervisedbyachief accountant.In an organisationthe
managersneedtoconstantlybe updatedonthe organisationscurrentfinancial positionandhow
theirdecisionsmayimpactonwhathappenstothisposition.There are twosubsectionsfor
accounts;financial accountingandmanagementaccounting.Financial accountingneedstokeep
data recordson the eventsthataffectthe businessfinanciallysuchassalesstatistics,these
accountantsalsoneedto produce annual accountsand keeprecordsonthe VAT.Management
accountingneedsto supplythe informationtothe managersthatcan influence the decisionsof the
businesstohave a higherchance of makinga profit.These accountantsneedtoworkout the costs
for productionandsetthe budgetsforthe businesssections.
Marketing
The functionof marketingisimportantforthe business because itmeansthattheywill be able to
identifythe customer’sneeds,anticipate themandthenimprovetheirservice tosatisfythem. The
people inthe marketingareaneedtoresearchonwhattypesof customertheyneedtotry to attract
by seeingwhattheywantandwhere theywantit,thentheyalsoneedtoknow whytheywouldlike
it andthe preferredprice forittobe setat. The marketingareaworkswiththe productionareato
ensure thatthe developmentof newproductscanbe adjustedtomeetthe customer’sneeds.
Marketinghas fourmainthingsthat theyneedtoagree on; these are the fourP’s andare; products,
prices,promotions,andplace.Theyneedtoknow whatthe productsare goingto be thatthe
organisationisexpectedtoproduce,the price theyare goingtocharge for the product,the
promotionssuchas televisionadvertisementsthatwill be designedtoencourage the customersto
purchase theirproduct,andthe place thattheyare goingto be sellingtheirproductstothe
customers.
Production
The productionarea inan organisationiswhere the productsare made andhere iswhere theywill
evaluate the bestwaytomake theirproduct.Organisationswillhave aproductionmanagerwhowill
be responsibleforthe developmentof the productfromstartingwiththe raw materialstothe final
product.The productbeingdevelopedneedtomeetthe standardssetbythe businessanditisup to
the productionmanagerto supervise makingsure thatthese standardsare met.The manageralso

5. Unit 1 P3
Lewis Appleton 5 Miss Johnston
needstodecide howthe goodsare goingto be producedandthe methodstheyare goingto use to
achieve this.Itistheirjobto make sure that the employeesknow whattheyare doingandhow they
are goingto doit, forexample theymayneedtohave a setschedule forthe employeestofollow.
Customer service
The customerservice areaneedstomake sure that the relationshipbetweenthe businessandits
customersismaintainedandimprovedon.Todo thisbefore theyactuallysellthe customerthe
productstheymay offeradvice onwhatproductswill suitthembestandnotifythemonthe latest
offersthatare available.Duringthe purchase theywill listentotheircustomers’requestsandmake
sure that theyfeel valuedbythe business.Afterthe purchase the businesswill needtolistentoany
complaintsorqueriesthatthe customermayhave and can provide more service afterthe sale such
as spare parts or informationaboutnewitemstheymaywanttobuy.Customerservice maycarry
out questionnairesregularlytosee how well theyare doingwithimprovisingontheircustomer
relationship.Large organisationshave centresthatare mainlyfocusedondealingwithcustomer
complaintsandqueriesandthe employeesworkinginthiscentre will be overseenbyamanagerand
call centresmay alsoworktogether.
Sales
Thisarea of the businessneedstomake sure thatthe customersare becomingaware of the
productsthat the businessare tryingtosell andthat the customersare makingregularpurchasesof
these products.Whereasthe marketingareaisdedicatedtoseeinghow the customerswantthe
productsto be,the salesarea isdedicatedtopromotingtheirproductsalesandtryingtoget the
customerstobuy the products.The salesdepartmentneedstofocusonthe creationof orders for
the customersto buytheirgoodsand services.Whereassome organisationsemploylarge forcesto
take care of this,otherorganisationsmayrelyonadvertisingtheirproducttoincrease the levelsof
salesandtherefore mayrecruita smallerteamof people.The salesareawill trytofindthe customer
groupthat will be interestedinthe productandact onthisto make sure thattheiradvertisements
triesto drawattentionfromthisgroupof people.
Human resources
The human resourcesareahas to make sure the people managementinanorganisationare doing
theirworkcorrectly.The workthat the businessneedstodoistheyhave to include apolicy-making
role whichmeanstheywill have tocreate policiesonthe employees,theywill needtohave concern
for the people andthe needsthattheyhave,theywill needtobe supportive tothe otherfunctional
managersto helpwiththe developmentof theirworksuchasgivingthemadvice onhow to
improve,theywillneedtofollowabargainingandnegotiatingrole,theywill needtomanage the
wagesbeingpaidtoemployeesandthe supervisionof healthandsafetywithinthe business,and
theywill alsoneedtohelpwiththe trainingof staff toensure thattheyare able to do the work
correctlyand efficiently.
The organisations I have chosen

6. Unit 1 P3
Lewis Appleton 6 Miss Johnston
Tesco
Tescoare organisedbyproduct,thisisseenintheirmanydifferentstore typestheyhave.Theyhave
large storescalledTescoExtra,standardlarge supermarketsthatare calledTescoSuperstores.In
betweenthesetwostore sizestheyhave the TescoMetro.Small neighbourhoodstorescalledTesco
Express.Theirneweststore isOnestop;these storesare suitedtosell differentproductswith
differentamountsavailable.These storesvaryinsize accordingtowhere theyare located.The small
neighbourhoodshops(Tesco Express) will mostlikelysell more productsthatare neededwithina
small family;thismayinclude itemssuchasfoodand drink.Largerstoressuch as the Tesco Extra
may have differentitemssuchasbooks,gamesandelectronics.Tescoisorganisedusingafunctional
structure,thisisbecause theyare a big organisationandone managerwill notbe able tohandle the
restof the businessalone.Thisalsomakesiteasierforthe businesstocommunicate withits
employeesandtheirdecisionswill be influencedbythisandcan leadto betterdecisionmaking.
Tescouse differentfunctional areastocontrol the activitieswithintheirbusiness. The businessis
splitintodifferentsectors;there are managersfordifferentproductssuchasfresh,nonfood,and
training.These managersall manage differentgroupsof employeestoensure thatthe correctwork
isbeingcompleted.The managersalsohave several assistants.All of the managershave toreportto
the store manager whothenreportsto the store director.
British Red Cross
The BritishRedCross are organisedbyarea,thisisbecause theyhave differentpartsof the Red
Crossand it includesthe BritishRedCross,the AmericanRedCrossandthe IndianRedCross.This
makesitpossible forthe charityto distribute itsserviceslocallyfromitsdifferentsectors;the
problemwiththisisthattheycan have a duplicationof supplieswhichwill thereforemeanitwill
cost more for the charityto operate.The BritishRedCrossusesa functional organisationstructure
because of the importance of gettingthe informationaroundthe charity.Itwouldbe difficultand
time consumingforthe charityto use a flatstructure because itwouldmeanthat the information
wouldneedtobe passedupuntil itreachesthe manager.Thisalso meansif a flatstructure was used
the informationcouldbe slightlymisheardandthe managermayreceive the wronginformation.

7. Unit 1 P3
Lewis Appleton 7 Miss Johnston
Organisational Chart
British Red Cross Society
Senior Management and Heads of Department
Chief Executive
Director of
Fundraising
Director of UK
Service
Development
Director of
Finance &
Business
Development
Director of
International
Director of
Strategy &
Evaluation
Director of HR &
Education
Director of
Communications
Head of
Trading
Head of
Fundraising
Strategy
Head of High
Value Giving &
Events
Chief Medical
Adviser
Head of Schools
& Community
Education
Head of UK
Emergency
Response &
Planning
Head of ITMS
Head of Data
Capture
Head of Health &
Social Care
Head of Risk &
Audit
General Manager
Commercial
Training
Head of
Property
Head of Legal
Deputy Director
of Finance
Head of
Purchasing &
Supply
Head of Disaster
Management
Head of National
Society Support
& Programmes
Head of
International
Finance
Head of
International Law
Head of
Humanitarian
Policy &
Partnerships
Head of MIS
Health & Safety
Adviser (P/T)
Head of First Aid
Learning
Head of
Information
Resources
Head of Media &
Public Affairs
Head of
Communications
Co-ordination
Head of
Marketing &
Brand
Development
Corporate Head
of Human
Resources
Living Diversity
Project Manager
Head of Refugee
Services
Territory
Fundraising
Managers x4 Operations
Director
(Overseas
Branches)
Head of
Governance
Head of
Monitoring
Planning &
Reporting
Head of
Financial
Planning &
Reporting
Head of Learning
Organisation &
Research
Director of Operations
UK Directors X4
(Wales & Western-
Scotland,NI,IOM-
South Eastern -
Northern)
Operations
Directors &
Functional Heads
Head of
Individual
Giving
Tesco

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Line of control
Tesco
The line of control in Tescomeansthat the employeesinTescowill have tobe supervisedbyhigher
positions.The employeeswill needtoreporttothe higherpositionstoensure thatthe information
reachesthe top managers.
British Red Cross
The line of control in the RedCross meansthatthe volunteersneedtoreportbackup to people with
a higherreputationwithinthe sectorthattheyare workingin.The volunteerswithahigher
reputationwill thentoneedtokeepreportingupwardsinthe businesssothatthe information
reachesthe trustees.
Howthis helps the organisations
Tesco
Thishelps Tescoby allowingthe staff toknow whotheyhave toreportto so that theycan ensure
the informationreachesthe topjobpositionswithinthe businessandthatitalso stayswithinthe
correct sector.Because Tescousesa hierarchical structure theyare able toorganise the business
intosectorsand have managerswithinthose sectorsthatneedto be reportedto.The managersare
possiblythenpartof a differentgeneral sector,where all of the managerswill thenreportuptothe
highestjobpositionstogive the information. Because the businessisorganisedbyproductand
locatestheirstoresaccordinglytothe local surroundings,the differentstoresallow the businessto
make sure the local communityhave the correct store forthem.Therefore the differentstoreswill
have resourcesthatsatisfy the customers. Tescoare organisedintodifferent functionalareas,this
allowsdifferentsectorsof the businesstopassupinformationuntil itreachesthe people thathave
to eithertake itintoaccount or deal withthe matter.
British Red Cross
Thishelpsthe organisationachieveitspurpose whichis toprovide aservice tothe community.By
usinga hierarchical structure theyare able tomake sure thatthe volunteerspassupall the possible
information.The volunteersare able tomake sure that the informationtheyreceive ispassedupto
higherpositionstheneventuallypasseduptothe trustees.Because the organisationisorganisedby
area itis useful because the peoplethatare local to the sector of the businessare able toreceive a
more efficientservice. A problemof thisisthattheywill needtoprovide extraandduplicated
resourcestomake sure all of the sectorscan run efficiently. The people atthe bottomof the chart
reportthe informationupcontinuouslyuntil itreachesthe personthatistodeal withthe issue.
Conclusion
To conclude itisimportantfor organisationstomake sure thattheyorganise theirstructure
efficiently,makingsure thattheyare able toeitherpassup theirinformationefficiently,asin
reachingeveryone orreachingthemquickly.Theyalsoneedtoorganise theirbusinesseffectively
such as decidingwhethertheyare goingtodistribute theirservicesbyarea,product,or function.

9. Unit 1 P3
Lewis Appleton 9 Miss Johnston
The organisationswill alsoneedtoknow whytheyare goingto needthe type of organisationand
howit isgoingto helpthem.