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Organisational Structure of Tesco and the NHS

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Frank Maloney

on 27 January 2015

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Transcript of Organisational Structure of Tesco and the NHS

Organisational Structures
In this section we will be looking at the hierarchical structures of Tesco and the National Health Service, and how the organisations use this structure to achieve the aims and objectives of the company.
Organisational Structure of Tesco and the NHS
Tesco has a tall structure. This is shown because the organisation is large and has multiple layers within the hierarchy. Tesco's structure is also based on function as opposed to location.

The National Health Service also has a tall structure. This is because the organisation is government owned and has is split into power in the government and power in the locations. The majority of the power in the national health service is given to the Minister of Health.

The benefits of having a tall structure are mainly coordination and efficiency.
Employees know their roles entirely and know the requirements and what they are responsible for. It allows for management of the company to run more smoothly when everybody has an individual place with a task-completion motive.
The negative aspects of this structure are that problems in one department can take a long time to be fixed if they require another department as communication is difficult.
Tall Structure
Flat Structure
The tall structure is where the hierarchy of an organisation is separated into multiple different levels with a large chain of command. This type of structure is more traditional to organisations and the majority of power is held by the company owner (private) or government minister (public).
A flat organisation is the structure where middle management is either only a minor part of the structure of the business, or is not present at all, with the direct chain of command being straight from executives to the staff.
One problem with the flat structure is that workers could have more than one boss. Limiting the height of a structure can also hinder its growth. Successful flat structures are sometimes limited to smaller companies like partnerships and co-operatives. Because the structure is somewhat "groupthink" based, the function of each department may overlap and blur into the role of another, causing some confusion.
One of the most significant advantages of a flat structure is that the economic costs are lower as there are far less employees. For example: It costs less to pay for a single manager as opposed to four different managers. Another advantage is that if managers take responsibly for a greater number of workers, the staff would then be able to operate with less direct supervision.
By Frank Maloney and Stephanie Dicu
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