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P3 – Describe How Two Businesses Are Organised

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P3 – Describe How Two Businesses Are Organised

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P3 – Describe how two businesses are organised

P4 – Explain how their style of organisation helps them to fulfil their purposes Unit 1 Business Environment

Hierarchy
Hierarchy
The shape of a hierarchical organisational structure is the pyramid. A hierarchical organisation is a group of objects structured to be subordinate to a central idea or person. The person in charge sits at the top of the pyramid (paid most). Each job description (manager, deputy manager etc.) sits below the top in descending order of power (paid less as you go down the pyramid). The flat bottom of the pyramid is filled with the bulk of the population of the organisation (worked hard paid the least). Organisational charts (diagrams) can be drawn to reflect the structure. Span of Control

An advantage of a narrow span of control is that it allows a manager to communicate quickly and more efficiently with the employees under them and control them more easily. A second advantage is the feedback of ideas from the workers will be more effective and won’t be misinterpreted along the way. Another advantage is that it requires a higher level of management skill to control a greater number of employees, so there is less management skill required. The advantage of having a wide span of control is that all the employees will be able to work with each other as they are on the same level of hierarchy and also be authorised by one person.

A disadvantage of narrow span of control is that it tends to increases the total number of organisational levels. This makes it difficult for manages at higher levels to keep in touch with staff operating within the low levels. The final disadvantage is that it creates problems of coordination between different managers and organisational units. The disadvantages of having a wide span of control is that a person may have to give information to lots of others. This will waste a lot of time that could be valuable to the company. Some workers may feel they lack...

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