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Improving Organisational StructuresAS Business Studies Unit 2
Aims and ObjectivesAim: Understand key elements of
organisational structure
Objectives: Define organisational structure Explain a hierarchical structure Describe span of control Illustrate organisational structures Demonstrate managerial techniques.
Starter Define the term ‘organisational
structure’.
Definition: The ways the jobs, responsibilities and
power within a business are organised.
Organisational Chart Can be used to structure the business
and include the following:
Where the responsibility and decision making authority lies in the business.
Job titles, roles and positions in business.
Lines of management and communication.
3 Tiers of Hierarchy Structure
4 Tiers of Hierarchy Structure
Levels of Hierarchy Number of layers of employees in an
organisation. Employees have a clearly defined role Approach is usually suited to
departments. The lines of authority in the structure
are known as the chain of command. If the hierarchy is too big the lines of
communication can be stretched.
Span of Control The number of subordinates, one
job/post holder is responsible for. Diagram 1: each member of senior team
has a wide span of control because they are responsible for 6 subordinates.
Diagram 2: the span of control is narrower as each senior team member is responsible for 3 subordinates.
Activity Darren is the manager of a
branch of Costa Coffee
Anna is the assistant manager and she reports to Darren
Anna delegates to the department managers - Jane, Tom and Omar
Scott, Andy and Toni all report to Jane
Rachel, Sally and Pete are accountable to Tom
Omar is responsible for Jon, Mark, Sam and James
Draw the organisational structure.
Who has the largest span of control and how big is it?
How many layers are in this hierarchy?
Would you consider this to be a tall or flat structure? Why?
Activity You are going to work
in teams to produce and sell business card boxes for Young’s Sports LTD.
You will have 10 minutes to produce as many boxes as possible.
For each box you will receive €2 plus a financial bonus for logos, slogans, colour.
You must appoint a manager of your team.
Young Sports Ltd
Feedback Were your managers good managers?
If so, why?
What made your team successful/unsuccessful?
Successful leaders should have considered the following things……….
Work Load In diagram 1, the work load of managers
is likely to be greater than the work load of managers in diagram 2 because they have a wider span of control.
Workers should not be overloaded as this may lead to a worker becoming demotivated, and unproductive.
Job Roles It is vital that everyone in an
organisation knows what the specific tasks and responsibilities of their job are.
Results in increased productivity and increased morale as workers feel confident in the tasks they are doing.
Delegation Passing authority to make specific
decisions to somebody down the hierarchy.
Dividing work load, can make business more efficient and productive.
Workers feel empowered to make decisions.
Workers morale may increase as they feel valued by the business.
Communication Flows Chinese whispers game.
In small businesses, communication flows should be quick and accurate, usually face to face. Organisational structures are small and flat.
As businesses become larger, their lines of communication get larger, and can become inefficient (communication failures).
To avoid this technology must be used to ensure communication is as effective as it can be.
Internal Communication Internal communication is
communication within a business.
Brainstorm why it is vital that internal communication is good.
Why good internal communication is important Everyone in firm is aware of objectives
and what the firm is aiming for. Customer needs can be met through
communicating market research results. Decision makers are aware of ideas and
improvements for the business which could lead to competitiveness.
Decision makers are aware of changes in business environment such as a new competitor entering the market.
Owner
Head of Finance
Finance Manager
Accountants
Auditors
Head of HR
HR Manager
Recruitment Assistants
Staff Welfare Officers
Head of Operations
Operations Manager
Assembly Line Workers
Production Assistants
Head of Marketing
Marketing Manager
Art Department
Branding Assistants