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Unit 1- P3 and P4 How Businesses Are Organised and How the Style of Organisation Helps to Fullfil the Purpose

In: Business and Management

Submitted By rawra96
Words 3610
Pages 15
P3- How businesses are organised. and P4- How the style of organisation helps to fulfil their purposes.
My two organisations are H&M (profit-making) and MAA (non-for-profit), as researched in Task 1.
The purpose of having an organisational Structure:

Division of work: * Division of work is essential in any type of organisation, big or small, everything has to be organised and carried out with care. H&M is a very large international business, therefore a lot needs to be completed and managed, as any ‘slip-up’ could cost the business a lot of money. Dividing up the work between the departments will mean that all the tasks that need to be completed, are done so with great detail and to a good standard in required time to keep the business at the peak of its success.
An example in H&M would be, that every department has a deadline by which they have to have done their part of year report for the Annual Report, so all the departments are doing different tasks and writing about their year, but in the end it’s put into one big annual report to be used as progress check and presented to some of the stakeholders such as the shareholders and the head office.
MAA is described as a medium sized business; yet the work is still divided between the departments so that all tasks are completed on time and up to a good standard, the difference is that there is much less staff in each department and some staff have more than one type of responsibility within the business.
The Finance and The IT support carry out their job separately, but if new IT equipment or computers/hardware needs to be bought, the department doesn’t just buy it, they consult the finance department and have to get permission for the money to be spent. They have to put the reasons forward as to why the equipment is needed.
Lines of control and communication: * There’s always a...

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