1.1 Tarmac’s structure
Tarmac was originally formed by Edgar Purnell Hooley in 1993 and now being the UK ‘s largest quarrying company and supplier of construction. Tarmac leads on the market of aggregates, ready mixed concrete and asphalt. Its business also include national contracting and Buxton.
In process of forming and developing. Tarmac is required to has a clear structure to set up a wealthy business. Base on scenario, Tarmac has set in place an organizational structure that provides clear lines of control, responsibility and communication. Tarmac is organized into three businesses: Tarmac Quarry Materials, Tarmac building Products and Tarmac international. To provide clear of control and responsibilities , in each area, the company focus on building three main level of staff means that the company. Each level engage with a specific range of responsibilities. Furthermore, Tarmac has a set of business principles to ensure employees commitment and help them understand their role. Tarmac operation contain support of some divisions and these divisions also share ideas across the company about how to improve processes and achieve cost saving. It clear that Tarmac structure base on its three SBUs. As a large and complex company, Structured by SBUs support Tarmac in expanding their business rapidly in different geographic location. However, cost for building up a SBU is high and that is a challenge for development of Tarmac. Refer to appendix 1, beside some divisions support to Tarmac operation such as finance, human resource, etc…there are other divisions contained in each SBU. Tarmac aim to set up multidivisional structure also with purpose to define responsibilities for employees. Another point is that multidivisional structure will help Tarmac to apply total quality management effectively. However, communication problems may happen in this structure. a division can interfere work of others or repeat what other division did then