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Organisation Structure

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Organisation Structure

Uploaded by

v8qrf2w9zd
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Organisation structure

IGCSE
Learning objectives

•Draw, interpret and understand simple


organizational charts.
•The role of management.
•Leadership styles
•Trade unions
Organization structure

• Refer to how responsibility and authority is


shared in a business organisation.
Types of organisation structure

• There are three types of organisation


structure.
1. By function
2. By product
3. By region
Features of organizational structures
• Levels of hierarchy:
• Show the number of levels of management. For
example director, manager and supervisor.
• Chain of command: Formal line through which
decisions are passed from higher levels of
management down the organisation.
Cont.

• Span of control: refers to the number of


subordinates who report directly to a
manager.
• Subordinate: An employee who is below
another employee in the organisation’s
hierarchy.
Wide span of control vs narrow span
of control
•Wide span of control means a single
manager or supervisor oversee a large
number of subordinates.

•Narrow span of control mean a manager


supervise fewer employees.
Factors that affect the size of span
of control
1. Size of organisation.
2. Experience and skills of the employee.
3. Management style.
4. Type of work
Group activity

•Discuss the advantages and


disadvantages of wide span of
control and narrow span of control.
Delayering

•Removal of one or more of the


levels of hierarchy from an
organisational structure.
Pair activity

•Discuss on the advantages and


disadvantages of delayering.
Centralized organisation

• One where all the important decision


making power is held at head office, or the
centre.
Decentralised organisation

• One where the decision making powers are


passed down the organisation to lower
levels.
Pair work

• Discuss on the advantages and


disadvantages of centralization and
decentralization organisation.
Roles and responsibilities
• As people move further up the hierarchy of a
business, their job role will change and they will gain
additional responsibilities. Every business has its own
specific job roles, but typical examples might include:
• Directors
• managers.
• supervisors.
Directors

• In public and private limited companies,


directors run the business on behalf of the
owners. They make the main strategic
decisions and set goals for the company.
Managers

• Managers work under the directors. Their


role is to work out how best to use the
available resources to achieve the
company's objectives.
Supervisors

• Supervisors work with the managers to


make sure that the business runs smoothly
from day to day. Supervisors monitor the
work of shop-floor staff and deal with
serious or non-routine issues with
customers.
The role of management
Managers run a business from day to day on behalf of its owners. The
job of a manager fulfils a number of important functions. Functions of
management include:
• Planning
• Organising
• Co-ordinating
• Commanding
• Controlling
Delegation

• Is giving the authority to subordinates to


make decisions and complete tasks.
Advantages of delegation
• Allow managers to give time on more complex
tasks.
• Helps to train workers and they can then make
progress in the organisation.
• It can motivate employee.
• Managers can measure the success of their staff
more easily.
Leadership style
• Are the different approaches to dealing with
people when in a position of authority.

Styles of leadership
• Autocratic leadership
• Democratic leadership
• Laissez-faire leadership
Autocratic leader

• This type of leader issues orders to workers


and expects them to be followed. They
believe that their view is best and that there
is no need to consider the opinions of staff .
Democratic leader
• This type of leader involves workers in decision-
making processes. They take account of the
views and preferences of workers when they set
goals. Once goals have been agreed, they will
monitor and control the work that is completed
to ensure that goals are achieved.
Laissez-faire leader
• This type of leader lets workers approach tasks
in their own way. They do not give them
instructions on how to work but may support
and encourage them. They do not monitor the
work completed by employees and they let staff
set their own goals and targets.
Factors to consider when
choosing a leadership style
•The skills and experience of the
workforce
•The time available to make a decision
•The personality of the manager
•The task to be completed
Trade union
• Is an organisation that represents the interests
of workers. It will negotiate deals on wages and
working conditions with managers on behalf of
its members. This process is called collective
bargaining.
Effects of employees being
union members
• Improved conditions of employment, for example, rates of pay, holidays
and hours of work.
• Improved environment where people work, for example, health and
safety, noise, heating.
• Improved benefits for members who are not working because they are
sick, retired or have been made redundant.
• Advice and/or financial support if a member thinks that they have
been unfairly dismissed or made redundant, have received unfair
treatment, or have been asked to do something that is not part of
their job.
Disadvantages for an employee
of trade union
membership
• It costs money to be a member.
•Workers may be required to take industrial
action even if they don’t agree.
Advantages of trade union to
employer
• Trade union can help improve communications
between workers and Management.
• Wage agreements will be easier to negotiate
with a trade union than with many individual
workers.
Disadvantages of trade union to
employer
• Trade unions can organise strikes if they do not
receive the pay levels and work conditions they
demand.
• wages are likely to be higher – adding to
business costs – when many employees are
trade union members.

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