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									    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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