A tall structure makes it easier for managers to monitor workers and the chain of command makes communication better. However there are some disadvantages like the hierarchy is inflexible, it can cause friction between employers that are at different levels. The junior staff could feel remote and under valued and decisions can take longer to put into action. John Lewis is a tall structured business; there are lots of layers within this business of managers and staff. However by having so many layers it means there are more costs and also takes longer to communicate within the structure. As a benefit though there are more opportunities for promotions as there is higher positions up the ladder. John Lewis needs to be organized so that is able to meet its purpose and should be designed so that it can divide up the work that needs to be done and to establish lines of communication.
By dividing the work up in this way means that people are clear about who does what and that all the tasks are performed quickly and efficiently. Even though it is hard to communicate with a layered structure but it also good to avoid conflict and decisions can be controlled. This often involves some form of line of control from someone higher up. So someone who is lower down the organization will have to report back to someone higher up before making particular decisions or actions. In John Lewis there are heads of departments which are in charge of that particular section, they will often attend meetings to then give orders to their staff in order to improve and ensure their department is performing well, this doesn’t only help the business succeed but also helps organization
John Lewis’s purpose is “The happiness of all the members through their worthwhile satisfying employment in a successful business”. They ensure that this purpose is met by making sure all the staff has good product knowledge of their department and to keep them motivated. By doing this it improves customer service and the success of the business.
John Lewis’s strategy is as follows Increase advantage of Partners
When our Partners achieve their very best at work, it creates a competitive advantage for the whole Partnership – happiness makes us all more motivated and effective. We aim for Partners to gain personal satisfaction by being members of a co-owned enterprise in which they have worthwhile and fulfilling employment, as well as a genuine sense of community. Realise market potential
We aim to attract new customers, and retain and deepen the relationships with those we already have. We do this through better understanding and quickly responding to their changing needs, whether that means more competitive pricing, flexible shopping opportunities, or peace of mind about our product sourcing. Enhancing our sustainability programme will support our market position.
Grow efficiently The business has grown significantly over the last ten years, and growth will continue to be important. But growth increases business complexity and impacts our costs. Focussing on efficiency is becoming more important and to achieve a balanced and profitable growth, whilst delivering enough profit to distribute to our Partners, we need to carefully prioritise our investments and further instil cost control discipline.
These aims help the structure of the business and help with improvements within the business in order for them to succeed. By achieving these aims it demonstrates the benefits of the business and the ability to compete against competition from other companies.