Organisation of two Businesses
Every business has an organisational structure that helps it meeting its purpose. http://www.cruk.manchester.ac.uk/portals/3/organogram%202.png This is the organisational structure of Cancer Research UK. It is a hierarchical, or also called tall, structure which means it has many different levels of employees who are reporting to a team leader who is then reporting to a higher manager. So it is a large chain of command. A tall structure can often lead to slow communication but for big businesses like Cancer Research UK it is an effective structure.
The Vinyl Head Café on the other hand has a flat structure as shown on the diagram above. That means the owner or manager
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So it is a very small business and the owner doesn’t have a too big range of responsibility and he can manage the café by himself. This way decisions are made quickly because the owner can make the decisions alone and doesn’t have to discuss them with other owners or managers. So the owner just makes a decision and then tells his employees.
Cancer research UK’s structure helps the business to fulfil its purpose because Cancer research UK is a large business and if it had a structure like the Vinyl Head Café the boss probably could not handle it because it would be too much because of the business’s size. So the hierarchical structure is a good structure for this business because every area the business has its own manager. If the owner is making a decision they pass it on to the managers who then pass it on to their team or if they have team leaders underneath them they pass it on to the team leaders who then pass it on to their
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Examples for functional areas are finance and human resources. While the Vinyl Head Café doesn’t really have those functional areas because it is a very small business so the owner manages it all on his own Cancer Research UK has many different functional areas. For example they have a finance area that manages the donations and everything else that has to do with the finances, they have a human resource area, different research groups that carry out research on different topics and they have the Chief Operating Office who manages the reception, web developer, grants advisor and the admin