Challenges to presenting a Hierarchical Business Structure


The Idli Group is a Singapore toy processing company founded in 2000, producing a type of brands and products such as dolls and building set toys. The business obtained huge success on the market and expanded internationally into several countries across the world since 2012. As Idli is growing within England, it is vital to create a finance team to support the existing production and sales division there.

Albeit there being many aspects to consider to ensure the smooth procedure within the business, this extension and crossing of geographical boundaries by the business is rewarding and rises global competitiveness. This article will provide advice in two parts in how to manage and create new finance section in England and provide insights and concern that should be made. Firstly, it'll cover the management model and organizational structure. Secondly, management style and methods for motivation.


Cultural variations can hinder the success of company goals in a multicultural global business community. Giving consideration to culture, it allows the firm to increase their efficiency and competitive position (Barney, 1986). Regarding to analyze conducted by Thomas and Ravlin (1995), imposing rules on members of different ethnicities to act like each other is inadequate as each culture has their particular personalities. In order to avoid social misunderstandings and clashes, professionals should be culturally delicate by selecting ideal management process and motivate staff through flexible authority.

Management model and structure

Model suggested and reason behind choice

The finance section performs a pivotal role handling money of any organisation. There are many departments that oversee different facets of the business's finance, each division is accountable for a professional area to ensure clean procedure. Having considered the nature of the section, using Internal Process as the management model seems most appropriate.

According to Weber, inner process is based on the notion that bureaucracy and tedious results in steadiness and control. It really is efficient and systematic in organising activity and organised hierarchy are necessary to keep order and heighten production. It aims to fortify responsibility, measurement, documentation and record keeping, therefore an apt model for the finance division.

It is necessary for the section to be bureaucratic, employees are manipulated with a set of rules and regulations therefore achieving efficiency and sustainability. Controlling money is sensitive and requires a advanced of accuracy, with strict and standardised techniques occur place, it minimise work errors and increase productivity.

As the company is a large and sophisticated system, interior process easily targeted towards formalising explicit goals. Within the finance section, there are obvious layers of hierarchy composition. Responsibilities of doing core duties are usually assigned to minds of departments and distributed to the sub-departments. The of sub-departments then have subordinates who are allocated specific duties they are expected to perform exhaustively (Make reference to Appendix 1). For instance, Billing and series section ensures all invoices are released and profits are accounted for. It is overseen by the Regional Financial Procedures Manager who'll delegate jobs to the Billing and Choices manager who will then reduces the task further and disperse these to the other departments he's managing. Likewise, information are relayed up-wards into the hierarchy when there is a need to obtain document agreement.

Within the departments, job scope of each staff are clearly described and standardised with specific standard operating technique for each activity to ensure all claims go through the same process therefore information will be relevant, reliable and dependable. Tasks are broken down which makes it better to process massive amount data and all correspondence related to financial details are all retained and filed for taxes purposes, prepare and file company's annual accounts and Taxes Return.

The division of work amidst personnel is highly useful, it allows individual specialists to "produce more and better work with the same work" compared to others. (Wren and Bedeian, 2009) Employees tend to be specialised in their area of work, nor lose time shifting in one activity to some other, therefore there are professional titles to the positions in each division of the financing section. This also illustrates impersonality in the workplace, bureaucracy drives results which is performance based focused, squashing favouritism. Employees are cured equally and undertake the standardised procedures and judged matching with their skills in order to attain a posture.

Organisational structure advised and reason behind choice

The section will adopt a tall organisational structure as it suits Internal Process. This composition is well suited for Idli Group as much decisions are made at the low levels and managers will only be concerned with an increase of important decisions. That is effective when the bigger level managers only have a handful of managers reporting rather than having multiple employees. A large structure has many degrees of hierarchy and each manager has a small period of control while taking care of a small and specialised group, this assist administrator to carefully supervise employees and permit them to invest more time on training employees.

Over time, the business enterprise will extend in England and the money division may requires additional support, more staffs will be used to guarantee the smooth operation of the business. The increasing layers of staffs can be added on without disrupting the existing layers which increases continuity of the business enterprise.


With the presence of bureaucracy and rigid guidelines, there exists clear lines of job progression. It is positive for the British staffs as they have confidence in fair play shown by the low score of 35 in Ability Distance, compared to 74 in Singapore. Nonetheless it also reflects their view equality which is without the model. There can be an uneven distribution of ability on each degree of the hierarchy, staffs on a single level might not be parallel in skills and salary and fewer opportunities to defend myself against responsibilities, as a result it may lead to unmotivated staff.

The hierarchy framework will probably cause communication distortion as it is subjective to different interpretation at every level. The more level there is the higher the chance of distortion producing the recipient acquiring incorrect subject matter or emphasis. Regarding to Hoslett (1951), people are selective when relaying message, whether to cover up problems, maintain position difference so never to hinder career progression or undermine position as superior.

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