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Sainsbury’s organizational structure

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Brief :

The structures which helps in the attainment of predetermine objectives in regards of an organisations benefits is generally referred as the organisational structure. Working in a systematic format fulfils a mission which formed strategically.  Choosing a best suited organisational structure will be beneficial for a company to generate revenue at larger level. It is essential for an organisation to form a structure as it defines responsibilities and roles related to the job profile within a company. The structure determines the flow of information in order to systematically perform different organisational activities. The varieties of structures followed by organisations: flat, matrix, multi-divisional and functional. Organisational structure plays a vital role in day to day operations within organisation so, it is important for a company to follow an effective organisational structure which will be responsible in the growth of a company. The reason for which the company needs to adopt suitable organisational structure is to facilitates the overall execution including better decision and performance. Achieving maximum performance is a sole purpose of any organisation in order to reach towards the final aim that helps to deliver value within the market. 

Sainsbury's operates with a hierarchical organisational structure. It is a different level of authority arrangement where those who make up the Board of Directors and the Operating Board are at the highest level, and the store staff, who, after all, serve customers, are at the lowest level. Everyone knowing their role and the person they report to is the main reason this structure still works, and by extension, the company runs smoothly.

Sainsburys organizational structure

Public Limited Company (PLC) refers to the business which is operated by directors and possess by the shareholder. Sainsbury's is known as tall organisation where there is numerous level of management hierarchy but the company has narrow controlling span. The benefit of narrow span of control is that Sainsbury's has high level of control and security within organisation. Matrix organisational structure is followed by Sainsbury's which helps the organisation to identify loopholes that may affect the operations of the business and take relative measures accordingly. Sainsbury's is able to adapt according to various operational situation within the organisation because of matrix structure as it is known for its flexible nature.

 
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 The matrix structure consists of three types such as weak matrix structure, balanced matrix structure and strong matrix structure. Balanced matrix structure works in the favour of Sainsbury's which is responsible for encouraging the employees to perform their best. Matrix organisational structure helps Sainsbury's to focus on the targeted audience's need and only downfall of this structure is that it generates opportunities which eventually leads toward the conflicts among employees as everyone wants a new position.

organizational structure

The matrix structure allows Sainsbury's to take effective and efficient decisions in order to operate its business in a successful manner and also simplifies the communication processes at different level. Matrix organisational structure allows clear reporting relationships that helps managers to supervise various levels. This structure enables the team members to share one of best ideas and practises resulting in optimum efficiency achieved by different departments via sharing a number of resources. With the help of matrix organisational structure, the changing need and demands are easily catered by the Sainsbury's. The improvements are done at faster pace as Sainsbury's has several directors which makes it easier for the business to identify various problems that may affect the company in future and directors are also able to monitor different activities by eliminating flaws.

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Key Features of Sainsbury's Organisational Structure

Hierarchical

Sainsbury's vertically manages and operates a top-down system. Senior executives make decisions, which pass through a chain of different management levels until they reach junior employees.

Board Structure

The Board of Directors, chaired by Martin Scicluna, sets the company's long-term targets. The Operating Board, headed by CEO Simon Roberts, is responsible for the day-to-day activities.

Departmentalization

Sainsbury's is separated into various departments, including Sales, Marketing, HR, and IT. Each of them concentrates solely on a particular field, thus making the work more organised and efficient.

Work Specialisation

Each worker is assigned a task that matches their skills. For instance, marketing experts will work on advertising, while accounting staff will handle budgets.

Span of Control

One manager supervises a large number of employees within the company, indicating that the company has a wide span of control. Overall, thing gets done much quicker, and communication is kept to a minimum.

Accountability

Every one of the company's employees is answerable for their work. Having such a clearly defined chain of mandate is one of the reasons why Sainsbury's can keep a high level of performance.

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FAQ's

1. What is the Organisational Structure of Sainsbury's?

Sainsbury's is characterised by a hierarchical organisational structure, which implies multiple levels of management. The company consists of various departments such as Finance, Marketing, HR, and Operations. Each department communicates with the senior management through its respective managers. This open line of communication assures clarity in communication between the various departments.

2. What Type of Organisation is Sainsbury's?

Sainsbury's operates as a public limited company (PLC) in the retail sector. The company sells not only food and garments but also provides financial services. Various shareholders distribute the ownership of the PLC company, while at the same time, investors can trade its shares on the London Stock Exchange. Important decisions taken in the company are usually made by the investors and management.

3. What Are the 4 Types of Organizational Structure?

The four principal kinds of organizational structures are as follows:

1. Functional Structure: Personnel is classified according to their duties which may include marketing or finance.

2. Divisional Structure: The organization divides itself into parts based on either products or geographical areas.

3. Hybrid Structure: Matrix makes departments and project teams work closely together.

4. Flat Structure: When compared with others, this structure has fewer levels of management thus allowing faster decision-making.

4. What is the Leadership Style of Sainsbury's?

Sainsbury's has a leadership style that can be described as democratic. In practice, this means that managers actively seek opinions from employees and then involve them in the decision-making process. It makes all of them feel valued and opens the door for cooperation among departments. Additionally, this approach energizes the workers and hence could result in better customer service.

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