Starter taskSee the organisational structure for Goodies super supermarket and answer the following questions:

1. What type of organisational structure is this?

2. Who is the line manager for employee 4?

3. What is the span of control for the Director of frozen and chilled foods?

4. How many levels of Hierarchy does Goodies super supermarket have?

5. Do you think this is the most suitable structure for a supermarket? Justify your answer.

Managing Director

Director of Fresh meats & fish

Director of Fruit and veg

Director of Frozen and chilled foods

Director of Tins, packets and long-

life products

Manager A Manager B Manager C Manager D Manager FManager E

Employee 3

Employee 2

Employee 1 Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9 Employee 10 Employee 11

Employee 12

Centralisation, decentralisation and growing a business

GCSE Business studies

Unit 9: People in business

Learning objectives

£ I have described the details of a organisational structure

££ I have analysed the benefits of a decentralising business

£££ I have recommended a growth strategy for a given business

The business is growing…

Business has been booming for Goodies super supermarket, over the past five years seven extra stores have been opened. Although he is making a lot of money, managing director Mr Goodacre is feeling rather over worked, still running the whole business from the origional store, but he has a plan…In order to lower his workload, Mr Goodacre plans to hand more power to the managing director of each store. Alloying them total control over tasks currently performed by head office, for example hiring of staff, stock purchasing and seasonal promotions.Do you think this is good idea?

Definitions

Decentralisation: allows employees working in all areas of the business to take decisions.

Centralisation: occurs when a small number of senior managers in a business take all the important decisions

Pros & cons of decentralisation

Advantages• Reduce pressure on

managers

• Lead to better decisions

• Quicker decisions

Disadvantages• All employees must

understand the businesses objectives and goals

• Training may be needed

• Good communication is very important

Learning objectives

£ I have described the details of a organisational structure

££ I have analysed the benefits of a decentralising business

£££ I have recommended a growth strategy for a given business