Type of Organisational Structure and Purpose of Tesco and Oxfam
Year 12 Business
P3 Unit 1 – The Business Environment
Tesco and Oxfam are both huge global businesses who both sell products to the general public however are organised completely different. In this leaflet I will compare and contrast organisational structures of both companies.
Type of organisational structure and purpose of Tesco and Oxfam Part A
Tesco organisational structure is hierarchical. A hierarchical structure has many levels. Each level is controlled by one person. Hierarchical companies tend to be a very big company just like Tesco is. In a hierarchical instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be. This could make it difficult to make decisions quickly as it would take a long time for an idea to go up the structure to someone who could put it to action. In a hierarchical structure there is a close control of workers. Workers in Tesco will know exactly what they have to do so they don't wait around until they are told. This could make it fairly difficult to get a decision through the layers of the organisational structure to the top person.
Oxfam’s organisational structure is different to Tesco’s. It is flatter due to there not being as many people organising and running the company. The charity is run by a chairwomen who is the leader of a number of trustees who makes all the main decisions within the company therefore their structure is fairly flat as there isn’t as many people to run things past. Charities try to have less managers to keep costs down and most of the trustees are volunteers and don’t get paid. Oxfam’s organisational structure is geographic because they work around the world with lots of different countries, helping people who are less fortunate than others. Oxfam’s line on control
P3 Unit 1 – The Business Environment
Tesco and Oxfam are both huge global businesses who both sell products to the general public however are organised completely different. In this leaflet I will compare and contrast organisational structures of both companies.
Type of organisational structure and purpose of Tesco and Oxfam Part A
Tesco organisational structure is hierarchical. A hierarchical structure has many levels. Each level is controlled by one person. Hierarchical companies tend to be a very big company just like Tesco is. In a hierarchical instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be. This could make it difficult to make decisions quickly as it would take a long time for an idea to go up the structure to someone who could put it to action. In a hierarchical structure there is a close control of workers. Workers in Tesco will know exactly what they have to do so they don't wait around until they are told. This could make it fairly difficult to get a decision through the layers of the organisational structure to the top person.
Oxfam’s organisational structure is different to Tesco’s. It is flatter due to there not being as many people organising and running the company. The charity is run by a chairwomen who is the leader of a number of trustees who makes all the main decisions within the company therefore their structure is fairly flat as there isn’t as many people to run things past. Charities try to have less managers to keep costs down and most of the trustees are volunteers and don’t get paid. Oxfam’s organisational structure is geographic because they work around the world with lots of different countries, helping people who are less fortunate than others. Oxfam’s line on control