This is the organisational structure of George’s hairdressers. It is not a very large business so there isn’t much of a structure. At Georges there is the owner who is called George. Then there are 3 workers which each have a barber’s chair. The one closest to the door is the oldest out of the 3 workers so George has appointed him the senior role. He is held responsible for opening and closing the shop, cashing up at the end of the working day and buying all the essentials that are needed for a barbers shop such as razors, shaving foam and gel. The way in which the business works is that each barber pays a weekly charge of £150 for their chair which is given to George to cover the water bills and electricity bills and also the rent. Whatever the barbers make on top of the £150 is their wage, no matter how much they make. Then finally you have the other two barbers which are the juniors as they have equal amount of responsibility and they only do simple tasks such as sweeping up or re stocking the shelves with the products they use.
A business needs to take account of the interests of all of its stakeholder’s groupings. These interests are all linked together. For example if George was to throughout all of his old machines and hair products and buy newer and better ones this will have an effect;
This may be seen as a bad thing because:
Customers may have to pay a little bit more for their haircut.
He may get lower profit.
He will have to buy from new suppliers rather than the old ones.
However, it may be seen as a good thing because;
It is better for the customers as they will get a better haircut.
More people will come if he has the latest equipment.
Employees will feel better if they are working with new products.
The company will increase profits by attracting more people in for haircuts.
Organisational structures also set out important aspects of how communication will take place. Lines of communication