Welcome Back to Unit 2 • Finished unit 1 (hurray!) – results will be published on Thursday March 12th….. • Unit 2 – is all about existing businesses & the world that they operate in…. Simply divided into 4 sections up until exams in May… • People – HRM, recruitment, training and motivating! (starting today!) • Marketing – how to get more customers buying! (after ½ term) • Accounts – more! (Mr V) • Operations Management - getting equipment, people & resources together to produce good/service. (Mr V) People in Business Improving Organisational Structures “ We don’t have as many managers as we should, but we would rather have too few than too many.” Larry Page Improving Organisational Structures In this topic you will learn about: • Key elements of organisational structures • Workforce roles • How organisational structure affects business performance Key elements of Organisational Structure • Levels of hierarchy/Spans of control Today’s lesson • Work loads/Job allocation • Delegation • The communication flow Next lesson What is organisational structure? • Organisational structure refers to the way in which a firm is organised on a vertical level and a horizontal level. • A vertical structure looks at the firm from the top to the bottom e.g. the Chief Executive, through different levels of management to the Shop Floor worker. • A horizontal structure looks at how a firm is organised on the same level e.g. workers doing similar jobs such as supervisor or manager but in different functional areas or departments such as finance, marketing and sales. Levels of hierarchy/Span of control • The levels of hierarchy shows the number of levels of management and supervision within a business. • The span of control shows the number of subordinates that a manager or supervisor is in control of. • If a manager has many subordinates this is called a wide span of control. • If they have few subordinates this is called a narrow span of control. Organisation Charts • We can use an organisation chart to show the levels of hierarchy and the span of control in a business How large How large is the is the Managing MD’s span Finance Director of control? Manager’s span of control? Finance Production Manager Manager How many levels of hierarchy Accounts Sales Production are there? Supervisor Supervisor supervisor What does an organisation chart show us? • The routes by which communication passes through the business. • Who has authority (power) • The roles and titles of jobs within the business. • The people to whom individual employees are accountable to & who they are responsible for. Levels of hierarchy/Span of control • The levels of hierarchy within firms will differ: • tall and thin structures occur where each superior is responsible for a few subordinates. • This allows for closer supervision and communication between the two levels. • wide and flat means that each superior is responsible for a large number of subordinates. • This requires greater delegation but fewer levels allowing for quicker communication through the firm. Examples of organisational charts For a typical Tesco’s store….. Example: Tesco's Organisational Chart – based on store structure How big is this Store Director 8 Manager’s Regional Manager Span? Store Manager Stock Controller Customer Service Personnel Manager Ambient Manager Fresh Manager Non Food Manager Training Manager Security Manager Manager Manager Admin/personnel Counters Manager Ambient Team Clothing Team Stock Control Security Assistants Customer Service Assistants (Deli, Curry Pot, Leader Leader Assistants Assistants Pizza) Team Electrical Team Support Office Bakery Team Leader CS Desk assistants Leader How many Restaurant Team How big is this 3 Non Food Assistants 6 Manager’s Leader levels of hierarchy Span? are there? Fresh Assistants Organisation Charts – Team work… Using A3 whiteboards create an organisation chart for the school. On your chart show the various senior team, departments, year groups and staff. Try to work out: • the height of the hierarchy – is it tall or flat? • the span of control of the different members of staff • are there any areas of contradiction? • how efficient is this structure? The answer…. Workloads/Job Allocation • Workload looks at the amount of work that an individual worker has to undertake. This will be influenced by the layers of hierarchy within a business…. • a narrow span of control is likely to lead to a greater workload. • Job allocation looks at the type of work that an employee has been given to do. As a firm increases in size it is likely that the employees will be given increasingly specialised job roles e.g. Accountants or IT specialists. Another example of an Organisation chart How many What is the MD’s levels of 4 workload? What is wrong with hierarchy this? are there? Workloads/Job Allocation The AQA state that Workforce roles should include: • Director – a senior manager elected by shareholders (includes MD) who oversee the running of the business. • Manager - in charge of a number of subordinates and with responsibility for short and medium term decisions – including stock, materials and equipment. • Team Leader – in charge of a group of employees covering specific tasks with a specific deadlines to be met. • Supervisor – a junior manager in charge of lower grade workers Your tasks…. • Using your job title cards – organise the 10 cards into the correct ‘structure’. • 1_organisation chart labels.xls • The answer should be….. The organisation should look like…. Another activity • Any business plc has a functional organisation structure. • The MD is responsible to a chair person and has a sales director, a finance director, a personnel director and a production director accountable to her. • On the production side there are a works manager, technicians, test engineers and machine operators. • In addition, the company employs 5 personnel assistants, 4 financial staff and 10 administrative staff and 20 sales people. • DRAW an organisation chart for Any Business plc from this information! Plenary • What does an organisational chart show? • Who has the more senior position? – Supervisor or Director? – Team leader or Manager? • What is the difference between workload and job allocation? Organisational Chart Homework 1. Draw an organisational chart • Using your Textbook – page using the following information: 143 – 146. • The business has 4 levels of 2. State TWO uses of an hierarchy. organisational chart. • The MD has a span of control of 4. 3. Using diagrams, explain the • There are 4 functional difference between a Tall and a managers: Finance, Marketing, Flat organisational chart. Operations and Human Include the benefits and Resources. weaknesses in both models in your explanation. • Each functional manager has 2 supervisors. • Each pair of supervisors is 4. What are the differences jointly responsible for 10 staff. between a Director and a Manager? Next lesson….. More theory – more analysis and evaluation skills with organisational charts….
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