GCSE Business Studies Organisational Structure

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Organisational Structure
Within Sainsbury's, the organisational structure is a traditional hierarchy. This means that there are
levels of staff, some of which have control over others and some who don't. As a general rule, the
higher up the hierarchy you go, the less staff members there are per layer, but they each have more
responsibility.
In my opinion, an organisational structure is vital for Sainsbury's achieving high levels of customer
satisfaction because it puts authority into some members of staff and allows them to tell lower staff
members where to go and which jobs to do. This is important because it helps to keep the store
running smoothly.
To support my opinion, I believe that the organisational structure provides somewhere for a
customer to go if they have a complaint. It is able to do this as it allows some staff to be more senior,
and therefore able to take action better than other staff. This is important for Sainsbury's objective
of customer satisfaction because the customer feels their complaint is being taken more seriously if
they are talking so a senior staff member.
However, I do appreciate there are limitations to having an organisational structure. The first one of
these is that some of the staff, particularly towards the bottom of the structure, may feel
undervalued. This exists because higher staff members are paid more, and have more responsibility.
This could potentially hinder Sainsbury's objective of increasing market share because in order to
become a store with a large market share, the staff need to feel appreciated in order to be working
to their full potential.
Another potential problem is that there are too many levels and people get confused who they are
supposed to report to. This exists because there are supervisors which manage the floor, and
supervisors who manage the checkouts. Some staff work between the floor and tills so it could get
confusing who they are supposed to go to if they have a problem. However, I don't think this
problem will exist in all stores as the smaller stores will only have 1 or 2 supervisors so it will be
easier for the staff to know who to report to.
To conclude, I believe that an organisational chart is extremely important to Sainsbury's because
without it the whole company would fall apart. No one would know what they should be doing or
where they should be. For an organisation structure to work, I think it is important that it is kept
simple; with it clearly defined who reports to who. Sainsbury's can achieve this by assigning certain
staff members to one supervisor, not by the area of the store they are in. It is also important that the
staff are treated with respect by those above them in the structure. Sainsbury's can achieve this
through basic teamwork training.
Overall, I believe that the organisational structure is effective in Sainsbury's because Sainsbury's
have a very large market share and are still making a huge amount of profit.

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