Btec Higher National Diploma in Business Unit 01: Organisation and Behaviour

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BTEC Higher National Diploma in Business
Unit 01: Organisation and Behaviour
Name: Rahenara Begum

Task 1: Understand the relationship between organisational structure and culture

What is organisation behaviour?
The impact that individuals groups and structure have on behavior within organisation effectiveness is known as Organizational behavior. Understanding the principles of the organisational behavior enables an understanding of how to relate to other members of the organisation. In a competitive environment organisations have to change and adapt,. Its effectiveness depends on the motivation and behavior of the work force. An organisations performance and capabilities depends on having appropriate incentives. Company background- Tesco

Tesco is one of the world’s largest retailers with operations in 14 countries, employing over 500,000 people and serving millions of customers every week. Tesco was founded in 1919 by Jack Cohen from a market stall in London’s Eat End. Over the years their business has grown vastly and is doing very well. Today Tesco operates in 14 markets across Europe, Asia and North America. In May 2011, Tesco launched their four-part vision for the future of their business. Tesco wants to be seen as the most highly valued business in the world. Tesco has so much to offer to its customers. Tesco has increasingly diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, petrol and software, financial services, telecoms and internet service, DVD rentals and music downloads Tesco is listed on the London Stock Exchange.

1.1 Compare and contrast three different organisational structure and culture Define what structure is?

Structures acts to create separate identities for different work groups and has a major bearing on the effectiveness. There are various types of organisational structures. Each defined to establish how an organisation operates.

The structures I will be talking about are Functional, Product based and Geographical.

A functional organisational structure is based on each job duties. Functional structure involves grouping together people who perform similar tasks. Functional organisations leave all the decision making to the top levels of management.

The advantages of a functional structure are that it provides stability and efficiency, especially in a large and complex organisation as everyone uses similar processes.

The disadvantage of this type of structure is that it can lead to poor communication between departments in organisations where the departments do not work together and may cause conflicts. The best example of an organisation that implements this structure would be local councils for example Tower Hamlets.

Diagram of a Functional Structure

A product-based organisational structure separates the company by products, activities, projects or geography. This type of structure is used to manage changes, testing and problem solving.

There are advantages in having a Product-based structure. This type of structure allows companies to be flexible within their business environment. The company has better control as each division can act as separate. It also helps them meet the needs of their customers. The disadvantage of this type of structure is that they have a lack of central control over each separate division and that can stop companies from achieving company goals.

Diagram of a Product-Based Structure

Geographical structured organisations are firms that are organized into geographical units (regional, national, international) that report to a central headquarters. Day to day operation is handled on a territorial basis. Example: Northern region and Western region.

The advantages of a Geographical structure are that there is a local decision making. This structure allows a group to be located within the region and foster and build relationships between personnel, employees and...
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