There are two main organisational structure when it comes to business

There are two main organisational structure when it comes to business; hierarchical structure and flat structure. The use of these is determined by the size of the business and how big the levels before are.
The hierarchical structure has a narrow span of control. This means that they have more layers and a longer chain of control. It uses levels to help keep control. Hierarchical structure begins with the main person who looks over the whole business. This could be an owner or even a general manager. They will be on the top all alone. As we move down the metaphorical pyramid, the next highest in command comes next, followed by a less superior level. In a hierarchical structure, the level before take charge of these set of employees. The one exception to this is with the person on the top of the structure, who looks over the whole business. As explained by, “information and directions flow vertically…Information flows up” while directions flow down. Hierarchical structures as they easily display to the employees who oversees them and their department. There is an opportunity to obtain a promotion, which encourages the employees to work harder.
Flat structure is frequently referred to as self-managed organizations as there are not usually job titles. This is because the company believes everyone is considered equal. There is no set job given to employees, therefore allowing them to do whatever project they want to do. Employees must acquire all the money and supplies needed if they want to start a project. Unlike hierarchical structures, there is no main owner or general manager to look over their employee’s projects. This would also not be suitable for larger companies. The level of responsibility that is thrusted upon the employees is elevated. It is easier to make decisions as there are fewer management levels.
There are many different departments that are involved in these structures. This begins with Market Research. This is where the Marketing department finds out what the companies customers want. They provide this information is given to the Finance department. They decide how much money should be put into this product and whether it is a good investment in the long run. If they product is given the go-ahead, Finance instruct the Purchasing department to buy raw materials for the products. The materials are then given to the Production department, who makes the product.
When the product is finished, the Finance department calculates how much it took to make each product, and from that information they will work out how much to sell it for to make a profit. The Marketing department then begin to promote the product to make the public aware of their new product. They do this by making TV/Magazine Adverts and other advertisements. The Sales department is “responsible for selling products” to the public ( The Disruption department transport the good to the customer’s house. If the company has any complaints about the product, Customer Service will take their complainant into consideration and may offer a refund or replacement.
NSPCC uses a flat structure to organise their business. There are very few layers in the structure of NSPCC. The company is organised by trustees and run by Chief Executive Peter Wanless. Wanless looks over the rest of the board, which consists of 8 other members. All of these people look after and communicate with the volunteers. The communication between them is easier and faster as all information is placed upon their website or through social media. They have a wide span of control due to less management levels.
Tesco uses a hierarchical structure as it is a massive international company that requires more layers of control. Communication takes a very long time to get to the level the request is for. Therefore, the workers take it upon themselves to work independently as they don’t have time to wait around to be told what they need to do.