In this assignment I am going to investigate the internal structure and functional areas of The Trafford Centre and explain how its internal structure and functional areas have changed over time.
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
Types of organisational structures;
o Hierarchical structure
o Flat structure
The Trafford Centre has an organisational structure.
The type of organisational structure the Trafford centre has is a hierarchical structure, large organisations have organised hierarchies and The Trafford Centre has a number of layers of management. Staff no their position in the hierarchy and their position and job title some staff may have power because of their job title for example a Director has more power or a manager.
In a hierarchical organisation employees are ranked at various levels within the organisation, each level is one above the other. At each stage in the chain, one person has a number of workers directly under them, within their span of control. A tall hierarchical organisation has many levels and a flat hierarchical organisation will only have a few. The chain of command (the way authority is organized) is a typical pyramid shape.
The above is a traditional hierarchical structure; senior managers make up the board of directors which are responsible for the businesses direction and the middle managers have responsibility of specific functions such as finance or customer service. Advantages of hierarchical organisations
o Authority and responsibility and clearly defined
o Clearly defined promotion path.
o Employees very loyal to their department within the organisation. o There are specialists managers and the hierarchical environment encourages the effective use of specialist managers. Disadvantages of hierarchical organisations
o The organisation can be bureaucratic and respond slowly to changing customer needs and the market within which the organisation operates. o Communication across various sections can be poor especially horizontal communication. o Departments can make decisions which benefit them rather than the business as a whole especially if there is Inter-departmental rivalry.
The reason why the Trafford Centre is a hierarchical structure is because of the levels they have in their structure they have directors, below them there are a number of functional area managers below them there is assistant managers all the way till assistant staff.
Chain of command
Chain of command is the line on which orders and decisions are passed down from top to bottom of the hierarchy. In a hierarchy the chain of command means that a production manager may be higher up the hierarchy, but will not be able to tell a marketing person what to do. The chain of command at The Trafford Centre starts from the Director, to the managers of all the functional areas who pass the message onto assistants then floor workers. Managers have authority over their subordinates; also managers are responsible for seeing that all necessary work is carried out.
The advantages of hierarchies are:
o Helps create a clear communication line between the top and bottom of the business – this improves co-ordination and motivation since employees know what is expected of them and when. o Hierarchies create departments and departments form teams. There are motivational advantages of working in teams. The disadvantages of hierarchies are:
o The formation of departments can mean that:
o Departments work for themselves and not the greater good of the business. o Departments do not see the whole picture in making decisions. o Hierarchies can be inflexible and difficult to adjust, especially when businesses need to adapt to changing markets – remember employees do not tend to react well to change. Span...