P3 - Describe how two businesses are organised
Organisational Structures:
Purpose
Division of work – Division of work in a business is an organisational
feature that differentiates the various roles that are given to the employees. The various job
roles within the business are divided between the various different departments in order to
make the company more efficient as each department is only responsible for one part of the
business.
Lines of control – Lines of control within a business are important to differentiate the
hierarchy in the chain of command. This clarifies which employees have authority over
others. An example would be sales assistants and then a supervisor. The supervisor is higher
in the chain of command therefore the employee must carry out what is asked of them from
the supervisor, and the supervisors are responsible for ensuring that the employees are
carrying out the task.
Communication – Communication within a business is crucial, as the information or change
of policies have to be passed on through the different departments as well as different areas
of management. Communication is the most basic yet most used method within a business
to do anything, which is why it’s so important that within the business it efficient and
effective.
Types of structures
Functional – For a business to be functional it involves dividing the company into various
different departments in order to define what each part of the business will be in charge of;
for example the business would be split into finance, marketing, human resources as well as
many other various departments. The finance department organises the budgets for
separate parts of the company ensuring they have the correct budgets. The Human
Resources department is one of the most important parts of a company as they are in
charge of all the essential happenings within the business. For example this could be when
the company needs more employees the HR department are in charge of looking at job
applications and organising all of the new candidates as well as all of the employees
paperwork; this paperwork could be the employees passport information, driving licence as
well as the copies of the candidates qualifications.
Geographic – Businesses that over time have grown into a huge company usually expand
into a national or even an international business of which their business is structured
depending on the location of that particular sector of the business.
Product – A business that sells products to its customers may separate its business into
different functional areas in order to organise its business around the products it is selling.
This may include ensuring the business has a stock room that stores its products and has an
employee that ensures that all of the stock is constantly logged.
Organisational Structures:
Purpose
Division of work – Division of work in a business is an organisational
feature that differentiates the various roles that are given to the employees. The various job
roles within the business are divided between the various different departments in order to
make the company more efficient as each department is only responsible for one part of the
business.
Lines of control – Lines of control within a business are important to differentiate the
hierarchy in the chain of command. This clarifies which employees have authority over
others. An example would be sales assistants and then a supervisor. The supervisor is higher
in the chain of command therefore the employee must carry out what is asked of them from
the supervisor, and the supervisors are responsible for ensuring that the employees are
carrying out the task.
Communication – Communication within a business is crucial, as the information or change
of policies have to be passed on through the different departments as well as different areas
of management. Communication is the most basic yet most used method within a business
to do anything, which is why it’s so important that within the business it efficient and
effective.
Types of structures
Functional – For a business to be functional it involves dividing the company into various
different departments in order to define what each part of the business will be in charge of;
for example the business would be split into finance, marketing, human resources as well as
many other various departments. The finance department organises the budgets for
separate parts of the company ensuring they have the correct budgets. The Human
Resources department is one of the most important parts of a company as they are in
charge of all the essential happenings within the business. For example this could be when
the company needs more employees the HR department are in charge of looking at job
applications and organising all of the new candidates as well as all of the employees
paperwork; this paperwork could be the employees passport information, driving licence as
well as the copies of the candidates qualifications.
Geographic – Businesses that over time have grown into a huge company usually expand
into a national or even an international business of which their business is structured
depending on the location of that particular sector of the business.
Product – A business that sells products to its customers may separate its business into
different functional areas in order to organise its business around the products it is selling.
This may include ensuring the business has a stock room that stores its products and has an
employee that ensures that all of the stock is constantly logged.
