Organizational Structures in Business

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Organisational structures
Most businesses are organised into structures because having a structure enables them to meet their purposes and aims and it also means that each employee will be divided into the job they specialise in which would mean an increase in production and an increase in sales for the company, this also means each employee is clear on what they have to do. An organisational structure is also established so that there are no conflicts in opinions about what decision to make between employees, which means employees lower down the organisation can report to the head/ senior of their department before going through with a decision, meaning better communication will also be established with an organisational structure. There are different types of structures which can be used to structure an organisation, some of the ways include: * Functional- employees in the functional structured organisations are usually expected to perform a specialized set of tasks, for example the accounting department would only have accountants as their employees, and this means an increase in production but can also mean a lack of communication between different functional departments which would mean production in a business would be slow and inflexible. A functional structure is best suited to business whose target aim is sell large volumes of goods at low prices. Other departments in this structure include production, finance, marketing and many more. * Divisional- divisional structure is a structure where each organisational function is grouped into a division. All the required resources and functions are contained in each division in a divisional structure. Divisions can be structured into different types, there can be one made on a geographical basis; for example an EU division, or there could be division on a product/service basis; for example variety of products from different householders or companies. Like a functional structure a divisional structure may also have different departments such as marketing, sales or finance. * Geographical structure- this is a structure used for businesses which have firms in different geographic regions. This type of structure allows a business’s offices to operate on its own whilst still following the company policies and values. A firm’s location in this type of structure can be local, national or international. Depending on the size of the business, each geographic location may report to an executive who controls several different locations or it may report directly to the top executives who are located at the main office of the business. The reporting structure is based on the size of the organization and its industry. This type of structure is mainly used in industries such as retailing, hotel chains or other large national and international organisations. Manufacturing businesses with firm in different geographical location may choose to use this structure. The two businesses I will look at in this assignment and talk about their organisational structure are Tesco and Apple, both huge global businesses. Being such massive businesses it means that it is vital for Tesco and Apple to have an organisational structure within the company. Both the businesses use functional structure within the business and within the structure there are different functional areas, both the businesses also have similar functional areas. The main activities and responsibilities of functional areas within Tesco and Apple are; * Customer Service

* Distribution
* Finance
* Human Resources
* Marketing
* Sales
* Production
* Research and Development

* The Customer Service function- Customer service employees at Tesco and Apple look after the customers who have questions or complaints regarding Tesco and for Apple regarding the products. Customer service employees need to make sure that all customers are satisfied and happy so, they are trained to handle...
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