Unit 1 – The Business Environment
Assignment: 2 (P3) (P4)
Both businesses BP and the BBC have organisational structures. The reason of an organisational is to put in order the workforce to make sure that the organisation is capable to complete vital tasks and goals. Creating a structure with clear roles, functions and levels of authority and systems help make sure employees are working together as a team to accomplish everything the business must do. The term span of control is the number of people that one manger on the hierarchy looks after. The more people under the control of one manager the wider the span of control. Less people mean a narrower span of control. For example a BP the board of directors have a large span of control as they look after the chief executive and he/she controls executive committee. Whereas the manager of refining and marketing only has to look after the employees in that department meaning the manager has a narrow span of control.
The term span of control is the number of people that one manger on the hierarchy looks after. The more people under the control of one manager the wider the span of control. Less people mean a narrower span of control. For example a BP the board of directors have a large span of control as they look after the chief executive and he/she controls executive committee. Whereas the manager of refining and marketing only has to look after the employees in that department meaning the manager has a narrow span of control.
Within an organisational structure there are levels of hierarchy. Levels of hierarchy show which levels of management and employees report to whom. For example at BP employee will have to report to their department manager, who will then report to managers and executives, who then have to report to the Chief Executive Officer, who then has to report to the Board of Directors. At the BBC the employees in each department; Operations, BBC North, Finance, Vision, Future Media has to report to department managers who will then report progress and information to the Directors and BBC Direction Grou). The higher you are on the organisational structure an employee is then the higher they are on the hierarchy so they will have a large amount of people giving information to them and the higher you are on the organisational structure the higher levels of responsibility you have as you have more employees to look after.
The BP organisational structure is flat. This means that there are fewer managers within the organisation and less managers in the organisation it means that each manager has a wide span of control. The advantages of a wide span of control are that there are less layers of management to pass a message through, so the message reaches more employees faster and as well as this it costs less money to run a wider span of control because a business does not need to employ as many managers. The BBC organisational structure is a matrix structure meaning that people work together on project in teams with people from different departments. The structure is narrow meaning that BBC has a narrow span of control. The advantages of a narrow span of control is that is allows managers to communicate quickly with the employees under them and control them more easily, another advantage that a narrow span of control is that a wide span of control requires a higher level of management skill to control a greater number of employees, so there is less management skill required. This keeps employees involved and employees that feel part of the business are motivated to do the best they can for the organisation. In both organisations tasks are divided within the organisation so that they can be completed on time. For example in BP the business is split up into functional areas. These functional areas are finance, marketing, human resources, corporate affairs, sales, operations and research and technology as well as many...
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