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Unit 1 The Business Environment P3 P4
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- PEARSON
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Lauren WhiteUnit One: Business Environment – Organisation and Influence
Businesses need to have an organisational structure to ensure they are
able to successfully fulfil their purpose. This means an organisations
structure needs to be designed effectively. This can be done by
establishing lines of control and communication within the business and
by divided up any work that needs to be completed. Its essential work is
divided to ensure people know exactly what they need to do and what
they are required to do in order to complete tasks. This ensures the
business is productive and working effectively. It’s important that there
are not any conflicts between people meaning it’s important for a
business to establish a chain of command. This can be considered a line of
control. This means people that have a high role within the business have
other people reporting to them before making decisions. This ensures the
correct decisions are made and that there are not any contradictions
between other people with different opinions.
Furthermore, organisational structures need to set out how
communications should take place within a business. This includes who
would be expected to talk to who within the business. It’s important for
any business that teams work well together and communicate in order to
make effective decisions. In some cases, there may not be a team working
together so a more senior member would tell their junior what they should
be doing and what they need to complete. However, if a business doesn’t
use their hierarchal structure successfully there can be complications
within the business. If the chain of command is not effective there can be
issues when responding to customers. If the chain is too long it is likely
the response to a customer would be a long process. The people within
the chain will be unable to communicate with each other fast enough in
order to provide a quick response. Furthermore, it’s important that work is
divided up but there still needs to be communication between different
teams to ensure that the best decisions are being made for the business.
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