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Organisational structures – ASDA+West Cheshire College

In this presentation I am going to look at organisation structure, span of control and the functional areas of two businesses.

Also, I am going to state their purpose and what are they aiming to do.

These two organisations are ASDA Stores and West Cheshire College.

Type of organisation structures

Both organisations: ASDA and West Cheshire College has a hierarchical organisation structure.

A hierarchical organisation has many levels and it is often called pyramid as at each level the number of employees would be greater. In this kind of structure, each department has a certain amount of staff, which does a particular task and is able to specialise in their own tasks. Possibly, the departments has to work in isolation unless there are set up procedures which allows employees to communicate. The communication needs to be passed down and there are a lot of people to be consulted before any decisions are made. These lines of communication are likely to be formal, and each employee has an official job title.

Hierarchical organisational structure

Some problems in communication may appear in this type of structure (horizontal – between the departments in the same level of chain) and then the company has to set up a special system to

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improve it. If the problem still exists then the company has to remove whole layer of staff from the structure.

However, organisations are always trying to improve so they can reduce the risk of any problems and avoid any misunderstanding in communication.

Asda stores

Purpose

The main purpose of this organisation is to make a profit and to provide the service to the best of their abilities.

The hierarchical organisational structure helps to fulfil their purpose by making clear paths of authority in the business. The layers of the structure shows who has the span of control over the business. The communication between the employees seems to be formal, therefore each employee has their official title and they know exactly who they need to speak to if there is any problem.

Strategic Planning

ASDA’s mission statement is ‘’to be Britain’s best-value retailer exceeding customer needs always’’.

The main aim for ASDA is to provide goods and services that are cheap and affordable to consumers or the public.

Other aims of ASDA are:

To offer quality products at low price

Providing Financial assistance and insurance

Building a sustainable business

Surviving as a business

Improving quality of the products

Providing a highly competitive service

Strategic Planning

The objectives of ASDA are:

Reducing the cost objectives of their items/products

Recycling their waste

Reducing energy consumption and being environment friendly

Support voluntary services

ASDA

This chart shows the organisational structure for the UK operations.

ASDA

This chart shows the organisational structure for each ASDA store.

Span of Control

The man responsible for all ASDA operations around the UK is called Andy Bond.

There are four divisional directors who are responsible

for North, South, West and East. Beyond the directors there are clusters. Each cluster is looked after by one person, and has about 8-9 stores in control.

Andy Bond has the highest level of span of control in UK stores although he is not able to make any major decision without consulting anyone else.

Span of Control

Each ASDA store is run by a management team, which is headed by the General Store Manager (GSM). There are also senior managers, who are called team leaders and are responsible for a number of departments. Each one is then responsible for a number of staff who works within that department.

Ambient Team Leader is responsible for Grocery Manager, Warehouse Manager and the Provision Manager. Fresh Team Leader and Customer Focus Team Leader are not responsible for anyone and are looked after by the General Store Manager. Shop floor assistants are called colleagues on the organisational structure, and all are paid the same amount of money.

Stakeholders – Shareholders

Shareholders – This stakeholder owns few percentages of the business so it is important for this person that the organisation is successful and profitable. Shareholders are investing in the business so they actually believe in the business potential and that the invested capital will be greater when its returned. Shareholders wants the business to achieve their aims and objectives, and as they have some power over the business it is important that they are listened to. They are really affected by ASDAs’ objectives because they expect to be paid regular dividends. Shareholders work with ASDA towards reducing the costs of the products as this would mean more money paid out to them.

Stakeholders – Government

Government – private sector businesses are important for this stakeholder as it makes the unemployment lower and it increases the budget. Government as a stakeholder expect corporation tax and VAT but it does not affect the objectives of the business. Government expect taxes to be paid therefore it wants the business to be successful and somehow it may support it as well. So the government also works with the business towards achieving their aims and objectives. This is because the government is making money out of the business and private sector businesses are helping the government to improve the state of the economy.

Stakeholders – Local Community

ASDA wants to improve surrounding area and this would benefit local community – the area would be nicer, kept tidy and people may want this. However, local community may not have a positive impact on the organisation. There may be some people who decided to talk about negative things in the local newspapers about the business and this is not helping the organisation to achieve its aims and objectives at all. Even if the local community do not have any power over the organisation it is important that they are listened to and that the organisation is not obstructing the area.

Stakeholders – Customers

Customers are usually helping the organisation to achieve its aims and objectives, and this is happening because they may want a product, or basically they just want a cheap place to do shopping. ASDA is trying to become the lowest priced supermarket in the UK and that is what the customers want as well therefore they are both working towards achieving the targets. Customers are able to give feedback about the organisation where the organisation can use it to improve its services or to introduce new products which may be highly demanded. This stakeholder has a positive impact on the organisation, and it does not want the organisation to be unsuccessful.

Functional Areas

There are many functional areas in ASDA Stores:

Purchasing

Administration and ICT

Customer service

Distribution

Finance

Sales

Production

Human resources

Marketing

Research and development

Functional Areas

Finance

Finance main role is to control the costs and the income of the business. They are controlling cash inflows, and outflows as well as the capital. This area also deals with the wages, loans, and shares.

Human Resources

Human Resources provides the training and recruitment services. Their main role is to recruit new people, which are fully suitable for the jobs offered. They also deal with conditions of the work (to make sure that all employees are safety) and they are describes as workers representatives.

Marketing/Sales

Their main roles are to find out what are the customer expectations, and to advertise the company successfully. Marketing and Sales department also decides upon the strategy of the business.

Functional Areas

Administration and ICT

Administration and ICT is involved in organising meetings, communication, making a record and filing it as well as providing technical support and the security of the documents. This area maintain the business and the administration is looking after the business action.

Production

Production takes care of providing services as well as getting the right equipment for the workers. Production department also deals with monitoring quality and budgets.

Customer Service

Customer Service main role is to provide a friendly and high quality service to the customers. Customer service department is also providing after-sales support and advise customers.

West Cheshire College

Purpose

The main purpose of West Cheshire College is to provide education at the best abilities and it is not there to make a profit.

A hierarchical structure helps to fulfil their purpose by ensuring that employees knows exactly what is their task and where the organisation is going therefore it is easier to provide a good quality service. This happens because every employee has their official job title and the organisation structure shows exactly who has the span of control over the business. In this structure the communication is usually formal. Some problems with the communication between the employees may appear, however if the management of the business is effective, it is going to stay at good level.

West Cheshire College mission statement is: ‘’ We combine the very highest standards of tuition and work-based skills development with a flexible and responsive approach – ensuring that all our learners can access opportunity and achieve their full potential.’’

Strategic Planning

West Cheshire College aims are:

For learners to be or to become employable and work ready.

To support our employers to improve their productivity and profitability.

In order to achieve these aims West Cheshire College supplies high quality learning opportunities.

Objectives:

To develop our learning to allow learners to be ready to work in the growing sectors e.g. sustainable and low carbon sectors.

West Cheshire College is committed to working with others to encourage businesses to come to the area and to plan with new businesses to meet their staffing needs.

Strategic Planning

By 2014 they will:

Grow the college by increasing our customer base and turnover

Be a major contributor to the economic and social well-being of the area

Have become the recognised leader in innovative education and training for the creative, service and technological industries

Have developed a distinctive way of delivering vocational education and training for the benefit of our customers and its business

Have changed the way in which vocational education and training is delivered and perceived

Be leading the vocational routes for 14 -19 year olds in the area

Have used the resources of our campuses to develop active personalised learning in real work environments

Have increased the impact on employers’ performance

Have developed:   – greater provision for 14 -19 year olds including NEETS  – a successful provision for adults  – an affordable Higher Education offer  – more Apprenticeships both in number and breadth  – an increased commercial provision and services to diversify income

Have improved our success rates

Be financially secure with an increased turnover and a more diverse income

Have become more efficient with lower costs of delivery

Have up-skilled staff to deliver this strategic plan

This chart shows organisational structure for West Cheshire College.

Span of Control

At the top of West Cheshire College organisation structure there are principals and vice principals, which are taking the instructions from the local governors. Then there are managers which have to look after the functions for their own departments and then they have to report back to vice principal and principal. Managers are also responsible for assistant managers who deal with day-to-day running of the classes and also have to report to managers. All of these people have to report back as they need to make sure that all the information is passed to the top of the structure.

Stakeholders – Employees

West Cheshire College has up-skilled employees who for sure help the organisation to work towards achieving its aims and objectives. This stakeholder play an important role in business success as they are providing services to external customers as well as the public and in return they are expecting a safe working enviroment and a fair rate of pay. All employees would like to have a secure job therefore they will deliever high quality services, which makes a positive image about the organisation and improves its success rates. Overall, this stakeholder is affected by aims and objectives, because they are the people who deliever the organisations’ strategic plan.

Stakeholders – Government

Government has the most power over the organisation and it has some kind of ownership. It is highly important for the government that the organisation is achieving its aims and objectives so the West Cheshire College grows as the government expect it to grow in near future. So basically the government helps the organisation to achieve its aims and objectives and it works with the organisation towards it. Government is funding this organisation therefore it is expecting it not to waste the money and invest in education – if the students are succeeding in their courses it means that the government will get money back once they start to work and pay taxes.

Stakeholders – Suppliers

Suppliers also helps the organisation to achieve its aims and objectives – West Cheshire College without the resources provided by suppliers the organisation would not be so efficient. So, if the organisation is fully supplied it can freely work towards its targets.

Stakeholders – Customers

Customers expect a high quality service of the organisation, and if it is efficient they will spread the word and give West Cheshire College a good image therefore West Cheshire College can grow and increase the customer service by the word of mouth of its existing customers. So, customers for sure are helping the organisation to work towards achieving its aims and objectives. The organisation can also get a feedback of its customers and see what needs to be improved in order to be even more successful. And if there is an increasing number of customers it means that the organisation will get more funds and possibly will still develop its facilities.

Functional Areas

Quality and Performance

Ruth Jones is in charge of the quality and performance of the organisation. This area makes sure that the quality and performance of the students is at high standard in order to make the organisation more successful.

Network services

Jan Persjanov who is a network services manager deals with computers network and web, and provides technical support. This area provides technical support for staff as well as students.

Learning Resources

Nina Main who is a manager of this area deals with the resources which students and staff uses, for example: videos, books etc. This area is basically ordering the equipment and makes sure that the learning resources are appropriate.

Functional Areas

Information systems

Liz Taylor is the assistant manager of CiS who deals with all the personal details of the students and makes sure it is kept safe. This area also supports operations, management and decision making.

Finance

Gary Hyde is responsible for managing the money which comes from the government as well as students. This area manages the budgets and decides what to spend the money on.

Commercial Services

Pat Byrne is the manager of commercial services and deals with any extra courses which are requested by external bodies. So, this area is responsible for organising those extra courses.

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