It is reallyimportant for large businesses like Tesco to have an organizational structurethat allows them to run efficiently and meet their aims and objectives. Theoverall organizational structure of Tesco as a business is tall. This isbecause there are several layers (more than 7) of hierarchy and bureaucracy,and the chain of command is also long.At the topof all power is the executive board headed by the President (CEO) of thecompany currently DAVE Luis, who is the head of all administrative staff andtakes all major decisions. Under the CEO is the board of directors, whichconsists of people such as the Chairman (John Allen), the Chief Finance Officer(Alan Stewart), Chief Executive Officer and other Non-Executive Directors. Therole of the Board of Director is to make all major decisions related to thebusiness operations of Tesco, and to make sure that the company is followingthe rules and legal structures in the countries in which it operates.
Directlybelow the Board of Directors, there is also an executive committee with 9people each heading different departments. The members at this level onlyperform supervisory functions and take all other major decisions as to thefunctioning of the company. There work at the external front consists of representingthe company as a whole in the international market.Below theExecutive Committee is the Geographical Area Manager. The Geographical areamanager of Tesco for the UK is currently Chris Bush, who is responsible for theoperations of Tesco within in the UK. The Geographic Area Manager makes surethat all Tesco stores within a country/geographical area are operatingeffectively and that they are yielding good level of profits.
Under thegeographic area manager Tesco has area managers, for example, the area managerfor north England. Area managers’ report directly to geographical areamanagers, and are responsible for organizing and running the operation of TescoStores across a particular area. Area managers might set targets for Tescostores to achieve in a particular area.Under theArea managers, Tesco has regional managers. The responsibility for regionalmanagers is to coordinate the operations of Tesco store’s within in aparticular region and to report to area managers of any decision or change.
The nextlevel after regional manager consists of store managers. Store managers areresponsible for running a Tesco store, and managing all the employees in astore. Assistant managers are subordinates of the store manager, and areresponsible to manage the inventory of a particular department within a storeE.G food department.Belowassistant managers Tesco stores have personnel managers, who are responsiblefor some members of staff.
Personnel managers have a wide span of control, asthey are responsible for many employees as well as assistant personnelmanagers. Assistant personnel managers are there to support the personnel manager and report of any problem tohim/her. Personnel managers provide support to the members of staff for whichthey are responsible and report any issue to the assistant managers or thestore managers. All of these many layers make the chain of command (a formalline of communication) of Tesco very long, as any message or decision needs tobe approved by each layer before it can be implemented.Although theoverall structure of Tesco as a business is tall, some stores do not follow thetall structure.
Large stores like Tesco Superstore and Tesco Extra, do followthe tall structure, as they have many employees and many departments such asfood items and non-food items like electrics and clothes. Small Tesco storessuch as Tesco Metro are convenience sized stores, therefore they do not havemany departments. Small stores might only sell food items and therefore mayhave only one manager and assistant manager who is responsible for theemployees of a small store. This means that small stores have a flat structure,as they do not have many layers and managers often have a wide span of control,as they are responsible for a few employees.
These feature show that the tallstructure of Tesco is decentralized, as stores in different areas havedifferent organizational structure in order to help them meeting their targetand offer effective customer service.