P.o.B Handout 2
P.o.B Handout 2
Organizational charts
An organizational chart is a visual representation of how an
organization is structured. The characteristics of 3 types of
organizational charts are listed below.
1. Line organization charts- many businesses are organized into
departments. A line organizational chat shows how authority
flows from the top to the bottom.
General manager
Production manager
Supervisors
Line workers.
2. Line and staff organizational charts- occur when the line
manager gets support from staff managers or staff specialists
to carry out his role more effectively.
Difference between a line and staff manager:
A line manager is a manager with direct personal
responsibilities for an individual employee.
A staff manager is a manager with specialist skills who
supports managers in a specialist area.
The staff specialist will be a specialist in their field such
as IT or HD.
General manager
Supervisors
Line workers.
3. Functional organizational charts- functional organization
involves structuring an organization into functional areas of
responsibility such as marketing, production, finance, and
R&D.
Each functional area would then involve a chain of
command.
The chain of command shows the lines of
responsibilities in an organization.
E.g. from senior manager at the top, to middle
manager, to junior manager. To operative at the
bottom.
The span of control of an individual is the number of
people there managed or supervised directly.
Choosing the best span of control means finding a
balance between having control over people below you
and being able to trust those people.
This can lead to a disadvantage being that it will have too many levels of
management which can be difficult to run such as a tall organization.
In a flat organization, managers delegate responsibilities to subordinate staff.
Several factors determine the span of control. There are:
The difficulty of working
The training and motivation of the workforce
Leadership style of the manager.
The various definitions of a good leader are:
Exerting influence
Motivating and inspiring others
Helping team members to realize their potential.
Setting a good example
Encouraging team members or employees to achieve the organization’s
goal.
Showing good judgment
Performing management functions as required by management.
Communicating effectively with employees and employers
Good leaders can take a ‘helicopter ‘perspective meaning they can look down
from above rather than getting lost in the details.
Characteristics of a good leader:
Honesty and trustworthiness- a leader needs to have followers so, a leader
should make fair decisions and should not be tainted by dishonesty or
corruption
Focus- a good leader should be able to focus on the key objectives of the
organization. Leadership is about being able to steer an organization in a
suitable direction, so focus is necessary.
Flexibility- ‘Objectives should not be set in stone.’ A leader needs to
research and understand the business environment, and where necessary,
adjust business objectives and the exceptions of those who work for the
organization.
Making difficult but intelligent decisions- sometimes leaders need to make
difficult decisions to take the organization forward (Examples of this are,
shutting down a plant or making existing jobs redundant, as well as
promoting new people to management positions)