It is really
important for large businesses like Tesco to have an organizational structure
that allows them to run efficiently and meet their aims and objectives. The
overall organizational structure of Tesco as a business is tall. This is
because there are several layers (more than 7) of hierarchy and bureaucracy,
and the chain of command is also long.
At the top
of all power is the executive board headed by the President (CEO) of the
company currently DAVE Luis, who is the head of all administrative staff and
takes all major decisions. Under the CEO is the board of directors, which
consists of people such as the Chairman (John Allen), the Chief Finance Officer
(Alan Stewart), Chief Executive Officer and other Non-Executive Directors. The
role of the Board of Director is to make all major decisions related to the
business operations of Tesco, and to make sure that the company is following
the rules and legal structures in the countries in which it operates.
below the Board of Directors, there is also an executive committee with 9
people each heading different departments. The members at this level only
perform supervisory functions and take all other major decisions as to the
functioning of the company. There work at the external front consists of representing
the company as a whole in the international market.
Executive Committee is the Geographical Area Manager. The Geographical area
manager of Tesco for the UK is currently Chris Bush, who is responsible for the
operations of Tesco within in the UK. The Geographic Area Manager makes sure
that all Tesco stores within a country/geographical area are operating
effectively and that they are yielding good level of profits.
geographic area manager Tesco has area managers, for example, the area manager
for north England. Area managers’ report directly to geographical area
managers, and are responsible for organizing and running the operation of Tesco
Stores across a particular area. Area managers might set targets for Tesco
stores to achieve in a particular area.
Area managers, Tesco has regional managers. The responsibility for regional
managers is to coordinate the operations of Tesco store’s within in a
particular region and to report to area managers of any decision or change.
level after regional manager consists of store managers. Store managers are
responsible for running a Tesco store, and managing all the employees in a
store. Assistant managers are subordinates of the store manager, and are
responsible to manage the inventory of a particular department within a store
E.G food department.
assistant managers Tesco stores have personnel managers, who are responsible
for some members of staff. Personnel managers have a wide span of control, as
they are responsible for many employees as well as assistant personnel
managers. Assistant personnel managers
are there to support the personnel manager and report of any problem to
him/her. Personnel managers provide support to the members of staff for which
they are responsible and report any issue to the assistant managers or the
store managers. All of these many layers make the chain of command (a formal
line of communication) of Tesco very long, as any message or decision needs to
be approved by each layer before it can be implemented.
overall structure of Tesco as a business is tall, some stores do not follow the
tall structure. Large stores like Tesco Superstore and Tesco Extra, do follow
the tall structure, as they have many employees and many departments such as
food items and non-food items like electrics and clothes. Small Tesco stores
such as Tesco Metro are convenience sized stores, therefore they do not have
many departments. Small stores might only sell food items and therefore may
have only one manager and assistant manager who is responsible for the
employees of a small store. This means that small stores have a flat structure,
as they do not have many layers and managers often have a wide span of control,
as they are responsible for a few employees. These feature show that the tall
structure of Tesco is decentralized, as stores in different areas have
different organizational structure in order to help them meeting their target
and offer effective customer service.