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What Does The Organisational Structure For Tescos Look Like?

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    The organisatinal structure for Tescos is referred to as a devolved or decentralised struture, in other words it is relatively flat.
    What this means is that power is devolved 'down the line' and people at the lower end of the (overall) scale of power can make decisions about what happens within the store.
    So Tesco's provide the framework and the blueprint for pricing, layout, staff terms etc, but others can operate flexibly to a certain degree within that structure.
    Proponents of this style of management feel that this enables people who are close to the shop floor and close to the customers, to be able to make decisions and influence power, so that the customer is satisfied.
    However, some critics of Tesco argue that this does not operate well in practice and in particular some of their buyers push farmers particularly within the third world so hard that they are effectively forced to live in poverty.
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    Hedgehog 

    answered 3 years ago

      Tesco, the United Kingdom-based international supermarket chain which has its headquarters located in Cheshunt, England, was founded by Sir Jack Cohen in the year 1924. It is one of the prime examples of a decentralised organisational structure. Each store in the Tesco chain of supermarkets has a store manager who makes the decisions concerning the store he or she is managing. All the store managers in a region report to the regional manager.

      A decentralised organisational structure has the following advantages: senior managers can concentrate on the most crucial decisions, decision making empowers and hence motivates the staff and increases their output, it gives people a better understanding of their work environment, including the colleagues and the customers and increases their knowledge and experience, responses to challenges and changes are much faster in a decentralised organisational structure and empowerment brings more responsibilities and brighter changes of accepting them and carrying them out more successfully.
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      Blurto 

      answered 3 years ago

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