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Analyse How Businesses Are Organised Essay

Definition: The way a business is organized internally to enable employees to carry out their job roles and communicate with each other. There are many Organisational structures these organizational structures allow you to know what everyone’s role is in a business and also who they have power over. The business is able to work more sufficiently if they have an organizational chart. Span of control – A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager, the wider the span of control. Less means a narrower span of control. Chain of command – Chain of command is the order in which orders and decisions are passed down from top to bottom of the hierarchy. Line Manager – A Manager who is responsible for achieving an organisations main objective by executing functions such as policy making, target setting and decision making.

Purpose of organisational chart:

The purpose of an organizational chart is that it depicts the staffing order of a company. It is commonly shown in a hierarchical format; it also helps identify who does what in an organization, how many staff work in the company and what the chain of command is. This information is important to internal staff, HR departments, stakeholders and board members. Why is there a need for an organizational STRUCTURE?

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It is essential for a business to have an organizational structure because if they didn’t have one the business would be a disorganised mess. Here are the advantages of having an organisational structure. Firstly it would be favorable towards the employees. There would be less inconvenience as the employees who- know who to go to and report to if they have any problems and need a person higher up in the hierarchal structure of the business to sort it out for them. Therefore the workers would know what responsibilities they have and what job they would need to do. Without the structure a business has the employees wouldn’t be able to carry out their jobs and the departments of the business would have too many employees or too little. Moreover both business London Heathrow Marriott and McDonald are allocated nationwide which shows that they need to be able to carry out orders quick and adequately which it also shows they are well organized. London Heathrow Marriotts organisational structure:

Here is London Heathrow Marriott’s organizational chart.

London Heathrow Marriott’s hierarchical structure is a Flat centralized hierarchy structure this allows the business to make faster decisions and it allows more responsibilities for the managers and others increasing motivation but this disallow to fewer opportunities for promotion leading to lower self-confidence. the advantages of a flat hierarchical structure for lhm:

A wide span of control is an example of an organizational structure and where additional employees are at an equal level instead of being superior to one another. This is an advantage to the London Heathrow Marriott as it tells us that there are fewer hierarchies consequential in an easier and faster communication. Also there would be fewer employees working at the top of the hierarchical structure which means it would cost the hotel less money. This shows that employees lower in position are not constantly maintaining authority and being managed which will make the workers more persistent and give incentive to achieve their responsibilities to the best of their abilities.

This will give confidence to the employees to work to the best of their abilities and show that they are committed to their job which could lead to receiving a promotion which shows that London Heathrow Marriott don’t have to spend more money in order to train new employees. This also shows that London Heathrow Marriott are not losing any sufficient amount of money which they can spend on something else and it also shows that they are achieving their aim of making ‘£20million per annum’ of profit. In addition to being able to communicate without any trouble there is also “excellent team spirit”.

Disadvantages of a hierarchical structure for lhm:

Even though there are lots of advantages to having a flat hierarchical structure it has its disadvantages. When some employees have other boss’s it shows that it is a flat hierarch in a business. This is sometimes not meant or adapted for a particular purpose and can cause lot of Trouble or difficulty caused to one’s personal requirements or comfort, they may find it distressing being controlled from more than one boss’s. Also there is less control within the business as there is only one manager per department and it would be harder for the manager to keep track of each inferior to who they are in charge over.

This shows that there is a large area of responsibility this might direct to some tasks that a business wants to achieve to be completely inefficiently meaning that they want to do things without any trouble which can effect the business as a loss for the business as there might be a problem but if it hasn’t been fixed or repaired after a period of time and if the person in charge of the people lower in the chain e.g. trainees, employees might be dealing with a lot of staff but some jobs and prospects of a business might be at risk of no longer existing. Therefore there will a less chance of getting promotions as a flat hierarchical structure as described in the hierarchical chart, there are more people lower in the chain than there is of superiors leading to lower morale.

how flat hierarchical structure helps LHm achieve its aims and objectives: One of the objectives London Heathrow Marriott wish to achieve is; “75% of guest’s to be satisfied”. The hierarchical organizational structures lead staff a clear principle to what their job is and the aims and objectives they should meet. With a flat hierarchical structure there is less confusion for employees and also many customers are satisfied, especially when the employees in the business know what they are doing. London Heathrow Marriott also want to achieve;“Labour turnover less than or equal to 25%”.By having a flat hierarchical structure in the business shows that rules within the business are made faster, furthermore managers are able to take actions quicker to any worries which a employee has. Hence employees will feel as if their need and concerns are heard out and met so they wouldn’t have any reason to leave the business. McDonalds organisational structure:

Here is McDonald’s organizational chart.

McDonald’s hierarchical structure is a flat plan. Where there is one manager who is in control of the other assistants and employees. He takes all the decisions and he is in charge of the main functions. This makes it very simple for the staff because all they have to do is selling. This way they can pay more attention to the customers, so I think this is indeed the best structure for a McDonald’s restaurant. But the McDonald’s corporation has a hierarchical structure. This is a huge company with lots of different departments which has to be organized very well, because if the employees aren’t directed in the right way they won’t do their jobs right.

So this way it is all ordered and the people can work undisturbed, this saves time and money for the business. the advantages of a flat hierarchical structure for McDonald’s: The advantages of a flat hierarchical structure for McDonald are that faster decision can be made so that they wouldn’t have to waste time on making decision and make quick profit. Also there is a shorter channel of communication so that employees can find out any necessary information which they need to know. It is also more cost effective as Flat Organisation is less costly because it has only few managers. It also creates fewer levels of management. It is more suitable for routine and standardized activities. Disadvantages of a hierarchical structure for McDonald’s:

There are chances of losing control because there are many subordinates under one manager this will result in bad discipline in the organisation as they have lost control.

[ 1 ]. Business text book
[ 2 ]. Business Dictionary
[ 3 ]. Business Dictionary
[ 4 ]. http://www.businessdictionary.com/definition/line-manager.html [ 5 ]. Interview with HR Manager Anna Foley
[ 6 ]. Interview with HR Manager Anna Foley
[ 7 ]. Interview with HR Manager Anna Foley

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