Human resources and organisational structures - OCRDifferent organisational structures in businesses

The importance of effective communication

Effective communication is important in any business. The type of organisational structure and the management approach a business chooses each have a significant impact on the type and amount of communication the business uses. As a business grows, maintaining an effective level of communication becomes increasingly difficult.

Communication in a business can be done in a number of ways. The most common methods are emails, text messages, online shared spaces, communication apps, letters, reports, phone calls, video-conferencing, and face-to-face meetings.

When communication is not done well, there can be negative effects on business performance. Ineffective communication falls into two categories: insufficient and excessive.

Insufficient communication

Insufficient communication means not enough communication or poor-quality communication. Insufficient communication can negatively impact efficiency and motivation, as employees may not fully understand what is required of them or what is happening across the business as a whole. This may have a negative impact on overall business performance and decrease the productivity of employees.

Excessive communication

Excessive communication means too much communication. For example, employees may receive too much communication in general, or they may receive the same message via multiple channels. This can often cause employees to become confused or feel stressed or overloaded. Ultimately, excessive communication can have a similar impact on efficiency and motivation to insufficient communication.

Key job roles and their responsibilities

Businesses employ staff to take on a number of different roles, with different duties and responsibilities. Roles are often organised into a hierarchy, which can include directors, senior managers, supervisors and team leaders, operational staff, and support staff.

Directors

Directors are the people at the top of a business and its organisational structure. Small businesses may only have one or two directors. Larger businesses often have a board of directors who make the key business decisions, such as implementing new policies, deciding how to invest profit or opening new offices. A board of directors is often made up of a senior person from each department, officers (such as treasurer or secretary), and the owner or chief executive officer (CEO) of a business.

Senior managers

Senior managers sit below the level of director in the hierarchy. They are the highest level of manager in a business and usually have overall responsibility for all staff below them. Senior managers may make key day-to-day operational decisions for a business and set business strategy or direction. For example, a manager of a bookshop chain might decide how the tables and shelves are going to be organised for the busy Christmas period and what sort of extra stock will be ordered to make the seasonal offer more appealing and maximise profit.

Supervisors and team leaders

Supervisors and team leaders sit below the senior managers in the hierarchy. They often manage a team of employees, which involves providing them with daily duties, agreeing working hours and ensuring they fulfil their roles. In a supermarket and some other businesses, each department is likely to have a team leader. For example, the fruit and vegetable section may have a dedicated team of employees and the departmental team leader may manage the team.

Operational staff

Operational staff complete tasks that fulfil the purpose of a business. For example, in a car dealership, the operational staff would be the sales representatives and car engineers. In a supermarket, the operational staff would be the customer service representatives and checkout operators.

Support staff

Support staff, assist with the daily operation and running of a business. Their duties do not directly contribute to the overall operation or purpose of a business. Support staff may include cleaners, maintenance workers, human resources employees and finance workers.

Ways of working

The organisation chart illustrates the traditional way in which businesses work by function. Businesses that work in different ways may need different types of structure. A business can work in a number of different ways, and that will affect the way it is structured.

Centralised structure

A centralised structure is one where business decisions are made by senior managers, or in a head office, and distributed down the chain of command. It is often used in retail chains.

Decentralised structure

A decentralised structure is one where business decisions are made by managers and subordinates further down the chain of command. It is often used by fast-food franchises, where each restaurant or take away outlet is responsible for managing its own operations.