Tesco Organisational Structure
An appropriate structure of an organization develops a base in order to outline the activities that are crucial for the achievement of organizational goals. The structure creates a sequence of operations from the high level to the base level. With respect to generating guidance and clarity on working, organizational structure plays a major role in developing that.
There are multiple types of structure that an organization can implement in their working structure such as Flat organization structure, Tall organization structure, functional organization structure, and many more. Tesco is a British-based multinational store merchandise in general grocery items and its headquarters is in England. Tesco follows a Hierarchical working structure that comprises multiple layers. Tesco has divided its working structure in different parts which ensures 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 Tesco falls into a pyramid style. The multinational retailer employs more than 3, 70, 000 people in the company. Tesco's working structure comprises 3 stages which are top level, mediate level, and base level.
Also Read: The History of Tesco - A Brief Case Study
Top-level management in an organization
The top level consists board of 10 directors with the chief executive officer. At the top level, all the power is headed by president of the Tesco who is the chief of a complete administrative staff and makes all the crucial decisions. Other members of the board are the chairman, the chief finance officer, the chief executive officer, and non-executive directors. The members at this level performs supervisory and ministerial functions and make essential decisions in regards to the proper functioning of the company. They work at the outer front as the face of the company in order to resemble the company's image and represent Tesco as the complete international market.
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Mediate-level management in an organization
This level comprises 5 committees which is
- Audit The key objectives of Tesco's audit committee are to produce oversight of the financial report and its process, the audit process of the company, organization'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 oversees all the initiatives and charity work conducted by the company which includes healthy living and education initiatives, thriving human rights in the supply chain, providing healthy and fresh food, and support for charities.
- The nominations committee is established to lead the procedure of board appointments and provide recommendations or suggestions to the board in 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 alignments with Tesco's culture and strategy, so as a result Tesco is capable of recruiting, motivating, and retaining its executives.
- Disclosure Committee- The aim behind establishing a disclosure committee in Tesco is to ensure the accuracy and completeness of 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 the company's disclosure control.
Base-level management in an organization
This level comprises employees of the organization who are divided through specific regions in accordance with their ability to perform duties and responsibilities. The top position at the base level is retained by a regional manager who makes important decisions regarding stores situated in a specific region. The regional manager directly reports to an executive at the mediatory level. Then after the regional manager, there is the store manager who is accountable for the management and proper functioning of his own store. Every store thereafter is divided into 3 subsequent departments which is the Food trading section, the non-food trading section, and the personal section. Every section has assistants working under different teams. The workers working in these departments have direct contact with customers on a daily basis.
The base level comprises vertical division of authority which made it possible for such a huge company to conduct successful operations in the market. This hierarchical management is accountable for the current position of the Tesco organization and proves extremely beneficial for further expansions.
Decentralized working structure
Tesco follows a decentralized working structure as Tesco is a supermarket chain where the process of delegation of authority is implemented. Each store of Tesco has a store manager who can make certain decisions in accordance with the management of their store. Each store manager is accountable to the regional manager. Decision-making is the process that empowers the employee’s responsibility for what they do. Empowerment enhances the labor 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 a hierarchical organization structure. Its structure and positions are segmented into multiple parts to make sure that the work will be completed effectively.
They follow the Pyramid structure of working starting from the top level to bottom level.
2. Tesco follows which structure centralised or decentralised?
Ans. Mainly Tesco follows a decentralized 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 the chain of commands where instructions are transformed from one person to another person. They follow a hierarchical structure that comprises multiple layers. These layers broke down into different levels. A higher level has higher authority.
4. Which structure does Tesco have tall or flat?
Ans. Tesco has having tall structure. Tesco is a large organization and has different layers and hierarchies. Tall structures regulate the decision-making process and it’s also appropriate for better functioning.
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