Tesco Organisational Structure
An appropriate structure of organisation develops a base in order to outline the activities which is crucial for achievement of organisational goals. The structure creates a sequence of operations from high level to base level. In respect to generate guidance and clarity on working, organisational structure plays major role in developing that.
There are multiple types of structure that an organisation can implement in their working structure such as Flat organisation structure, Tall organisation structure, functional organisation structure and many more.Tesco is a British based multinational store merchandise in general grocery items having its headquarter is in England. Tesco follows Hierarchical working structure which comprises multiple layers in it. Tesco have divided their working structure in different parts which ensure efficient working in regards to the positions and obligations. The higher in the hierarchy have the highest responsibilities and authority. The chain of command in the business structure of the Tesco falls into pyramid style. The multinational retailer employs more than 3, 70, 000 people in the company. Tesco working structure comprises 3 stages which is top level, mediate level and base level.
Also Read: The History of Tesco - A Brief Case Study
Top level management in organisation
The top level consists board of 10 directors with the chief executive officer. At the top level all the power headed by president of the Tesco who is chief of a complete administrative staff and takes all the crucial decisions. Other members of the board are chairman, the chief finance officer, chief executive officer, and non-executive directors. The members at this level performs supervisory and ministerial functions and take essential decisions in regards to proper functioning of the company. They work at the outer front as the face of company in order to resemble company's image and represent Tesco as the complete international market.
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Mediate level management in organisation
This level comprises 5 committees which is
- Audit committees-The key objectives of Tesco's audit committee is to produce oversight of financial report and its process, audit process of the company, organisation's system of internal controls and they have to comply with laws and regulations.
- Corporate responsibility committee-This committee is established by the Tesco in context of completing its social responsibility. This committee oversee all the initiative and charity work conduct by company which includes healthy living and education initiatives, thriving human rights in supply chain, providing healthy and fresh food and support for charities.
- Nominations committee-This committee is established to lead the procedure of board appointments and provide recommendation or suggestion to the board in the matters of appointments and terminations of directors, performance evaluation and provide major help in fulfilling Tesco's corporate governance responsibilities.
- Remuneration committee-This mediate level committee is built to generate the remuneration policy and packages for senior managers and directors. This comprises decision making in regard to workforce remuneration and make alignments with the Tesco's culture and strategy, so as a result Tesco is capable to recruit, motivate and retain its executives.
- Disclosure committee- The aim behind establishing disclosure committee in the Tesco is to ensure the accuracy and completeness of the Tesco's reports and public disclosure statements. It assesses the influences of the company's controls and procedures and it generates the aspects of changes in company's disclosure control.
Base level management in organisation
This level comprises employees of the organisation who are divided through specific regions in accordance to their ability of performing duties and responsibilities. The top position in the base level retain by regional manager who takes important decision regarding stores situated under a specific region. Regional manager directly reports to executive at mediatory level. Then after regional manager there is store manager who is accountable for management and proper functioning of his own store. Every store thereafter divided into 3 subsequent departments which is Food trading section, non-food trading section and personal section. Every section has assistants working under different teams. The workers working under these departments have direct contact with customers on daily basis.
The base level comprises vertical division of authority which made possible for such huge company to conduct successful operations in the market. This hierarchical management is accountable for the current position of the Tesco organisation and proves extremely beneficial for further expansions.
Decentralised working structure
Tesco is following decentralised working structure as Tesco is supermarket chain where the process of delegation of authority is implemented. Each store of the Tesco has store manager who can take certain decision in accordance to the management of their store. Each store manager is accountable to regional manager. Decision making is the process which empowers the employee’s responsibility of what they do. Empowerment enhances the labour output and motivation. Tesco applied this structure which allows transfer of authority from top level to middle level and then lower management of the organisation.
Popular FAQ asked by learners:
1. What organisational structure does Tesco have?
Ans. The company Tesco follows hierarchical organisation structure. Its structure and positions are segmented into multiple parts to make sure that the work will complete effectively.
They are following the Pyramid structure of working starts from top level to bottom level.
2. Tesco follows which structure centralised or decentralised?
Ans. Mainly Tesco follows decentralised structure in the management as, they conduct delegation of authority by the top management through the middle and lower hierarchy of management in an organisation.
3. What chain of command does Tesco use?
Ans. Tesco is using chain of commands where instructions are transform from one person to another person. They follow hierarchical structure which comprises multiple layers. These layers broke down into different levels. Higher level has higher authority.
4. Which structure does Tesco have tall or flat?
Ans. Tesco is having tall structure. Tesco is large organisation and have different layers and hierarchy. Tall structure regulate decision making process and it’s also appropriate for better functioning.