Organisational Structures

Exercise

RemaPlay is a medium sized business based in Chester.

They sell educational toys through the internet, mail ordering and catalogues.

Their focus is to compete on cost (to be a low cost supplier).

The organisation has two levels: The ownership family and the hourly paid staff.

The hourly paid staff distribution is displayed in the below table.

Department	No. of Staff
Production	24
Packing	15
Warehouse	5
Office	4

Current Issues

• All hourly paid staff earn the same amount.
• Insufficient organisational control on quality, cost and time elements.
• Older, and experienced staff doing more in role, but getting paid the same.
• Ownership family causing issues by doing jobs poorly, and not delegating (as there is no hierarchy to delegate to).
• "The left-hand does not know what the right-hand is doing"

Questions

1. Outline why the lack of hierarchy might lead to problems in running the business.
2. How does the current structure affect;
   1. Profitability?
   2. Morale?
   3. Communication in general?
3. Explain how RemaPlay should be structured via an organisational chart.
4. How might your organisation structure improve operations and profitability?