Businesses are organised

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For this assignment I have been asked to write a report focusing on the larger business of my two chosen businesses from activity one. I will consider the type of organisation structure the business has, I will also consider the functional areas of the business. The last point I will consider is the forms of communication used in the business and whether they allow they allow the functional areas to work together. HSBC is a PLC (Public limited Company) and the world’s largest bank and the world’s 6th largest company.

They have big aims and big objectives and they are a very successful business. As a large business company they have a tall organisational structure with 13 levels. Their tall organisational structure is also an hierarchical structure because it contains a chain of command which basically means that different levels of the structure have different authorities, the level with most authority is at the top and the level with less authority at the bottom.

According to the book “GSCE Business Studies third edition” the term communication means “… the process of converting information from one person to another in such a way that an accurate message is received and can be acted upon. ” In a business way communication can take place in 4 ways (organisation chart) Upwards Communication: Upwards Communication is when a subordinate sends information to his superior, e. g. when a worker sends information to a supervisor.

This type of communication is used more often in small businesses, in large businesses they use different methods such as suggestion schemes and quality circles. Downwards Communication: Downwards Communication are sent from above (of the organisational chart) to the workforce, e. g. from a supervisor to a worker, generally the information passed is a decision, instructions and policies. Downwards Communication gives the workforce to have a vote in the matter, to influence the final decision.

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