Business Practice 2 Module 3

Investigate the structure of an organisation as a workplace

Outcomes Explain the concept of core business activities within an organisation Describe the process within a selected core function Describe examples of the way in which a selected core function add value to the organisation Describe the concept of support business functions Describe the process within a selected support unit Describe the relationships between the different activities in a selected business (Organisational structure)

Explain the concept of core business activities within an organisation

Describe the process within a selected core function

Describe examples of the way in which a selected core function add value to the organisation

Describe the concept of support business functions

Describe the process within a selected support unit

Describe the relationships between the different activities in a selected business (Organisational structure)

Core business activities An organisation’s core activities may be summarised as follows: Receiving, storing and distributing all materials necessary for manufacturing the product. Operations or production - all activities that are involved in the manufacturing of the product or delivery of the service. Distribution of the product to those people who buy the product. Marketing and sales of the product. Service of the product: e.g. installation, repairs and supply of parts.

An organisation’s core activities may be summarised as follows:

Receiving, storing and distributing all materials necessary for manufacturing the product.

Operations or production - all activities that are involved in the manufacturing of the product or delivery of the service.

Distribution of the product to those people who buy the product.

Marketing and sales of the product.

Service of the product: e.g. installation, repairs and supply of parts.

Departments Purchasing – ordering and receiving raw materials Production – manufacturing the products Marketing – distribution and selling of products

Purchasing – ordering and receiving raw materials

Production – manufacturing the products

Marketing – distribution and selling of products

Marketing department Tracking the consumer Product development Pricing of products and services Cost price of the product Market price of the product Target price Distribution channels Manufacturer-consumer Manufacturer – retailer – consumer Manufacturer – wholesaler – consumer Manufacturer – wholesaler – retailer - consumer

Tracking the consumer

Product development

Pricing of products and services

Cost price of the product

Market price of the product

Target price

Distribution channels

Manufacturer-consumer

Manufacturer – retailer – consumer

Manufacturer – wholesaler – consumer

Manufacturer – wholesaler – retailer - consumer

Marketing communication Advertising Personal selling Sales promotion Publicity

Marketing communication

Advertising

Personal selling

Sales promotion

Publicity

Value added by the marketing department Market research Pricing Distribution Marketing communication

Market research

Pricing

Distribution

Marketing communication

Support business activities Human resources Finance Information Technology Administration

Human resources

Finance

Information Technology

Administration

Human Resources Attracting human resources Human resource planning S taff recruitment Staff selection Placement of staff Induction of staff Retaining human resources C ompensation (salaries) Health and Safety Labour Relations

Attracting human resources

Human resource planning

S taff recruitment

Staff selection

Placement of staff

Induction of staff

Retaining human resources

C ompensation (salaries)

Health and Safety

Labour Relations

Human Resources Developing Human Resources. This is done through Staff training and development Performance Management SETAs An effective human resource department can create a workforce that is: Highly skilled Motivated Satisfied Free from discrimination Criminal free

Developing Human Resources. This is done through

Staff training and development

Performance Management

SETAs

An effective human resource department can create a workforce that is:

Highly skilled

Motivated

Satisfied

Free from discrimination

Criminal free

Organisational structure Ensuring that all the important work necessary to achieve the objectives, is done. To eliminate or minimise overlapping or duplication. To match the skills and training of workers with the needs of the business.

Ensuring that all the important work necessary to achieve the objectives, is done.

To eliminate or minimise overlapping or duplication.

To match the skills and training of workers with the needs of the business.

Organisational structures F unctional structure Line structure Geographic structure.

F unctional structure

Line structure

Geographic structure.

Functional Structure

Line Structure

Advantages and disadvantages of a line organisational structure Creates barriers to co-operation between departments, often leading to conflict Facilitates a team spirit in each department. Communication is slowed down, since it tends to move up and down (silo effect) and not across different functions Employees have a clear understanding of where they fit into the organisation Managers are typically measured on the performance of their functional department and therefore tend to put departmental objectives ahead of organisational goals Enhances operating efficiency in functional areas Creates barriers to developing cross-functional skills. Promotes in-depth expertise in particular functions, making it easy to develop specialised skills in the organisation

Geographical Structure

Geographical Structure Advantages Ensures that the organisation is able to meet the needs of its geographic markets Ensures that the responsibility for the profitability of the organisation is delegated Develops strong team spirit Creates promotional opportunities Provides training opportunities for top management

Advantages

Ensures that the organisation is able to meet the needs of its geographic markets

Ensures that the responsibility for the profitability of the organisation is delegated

Develops strong team spirit

Creates promotional opportunities

Provides training opportunities for top management

Disadvantages Creates barriers to cooperation Limits the control of top management May have a negative impact on corporate culture Creates duplication and adds management layers May cause conflict between imported managers and local workers

Disadvantages

Creates barriers to cooperation

Limits the control of top management

May have a negative impact on corporate culture

Creates duplication and adds management layers

May cause conflict between imported managers and local workers

Decentralisation The management can use local expertise. Speedy decisions are taken without having to wait on “headquarters.” The local manager is held accountable for the profitability in a region. This obviously also creates opportunities for promotion. Regional positions provide training opportunities on the job.

The management can use local expertise.

Speedy decisions are taken without having to wait on “headquarters.”

The local manager is held accountable for the profitability in a region.

This obviously also creates opportunities for promotion.

Regional positions provide training opportunities on the job.

Advantages Ensures that the organisation is able to meet the needs of its different geographic markets. Ensures that the responsibility for the profitability of the organisation is delegated to the management of each region. It helps to develop a strong team spirit in each region. It creates promotional opportunities. It provides a training opportunity for top management.

Ensures that the organisation is able to meet the needs of its different geographic markets.

Ensures that the responsibility for the profitability of the organisation is delegated to the management of each region.

It helps to develop a strong team spirit in each region.

It creates promotional opportunities.

It provides a training opportunity for top management.

Disadvantages Creates barriers to co-operation between various regions. This often leads to rivalry and conflict. Limits the control of top management and can allow regions to hide their poor performance. It may have a negative impact on the organisation’s overall corporate culture. It creates duplication and adds extra management layers, which increases running costs of the operation. It may introduce conflict between “imported” managers and the local workforce.

Creates barriers to co-operation between various regions. This often leads to rivalry and conflict.

Limits the control of top management and can allow regions to hide their poor performance.

It may have a negative impact on the organisation’s overall corporate culture.

It creates duplication and adds extra management layers, which increases running costs of the operation.

It may introduce conflict between “imported” managers and the local workforce.

Explain the role of the administration department in an organisation After completing this outcome you will be able to: Explain the main function of the department in relation to core business Describe the role of three other departments that interact with the selected department Describe the value of the department to the organisation

After completing this outcome you will be able to:

Explain the main function of the department in relation to core business

Describe the role of three other departments that interact with the selected department

Describe the value of the department to the organisation

Administrative tasks Providing an efficient and effective reception area O ffering personal assistance to managers F iling P rinting an copying of documents and forms H andling incoming and outgoing mail P roviding a telecommunications service M anaging the systems used for bookkeeping K eeping the statistics of the business

Providing an efficient and effective reception area

O ffering personal assistance to managers

F iling

P rinting an copying of documents and forms

H andling incoming and outgoing mail

P roviding a telecommunications service

M anaging the systems used for bookkeeping

K eeping the statistics of the business

Interaction with other departments Human resources department Marketing department Purchasing department

Human resources department

Marketing department

Purchasing department

Human resources department Telephone contact with n ewspapers / recruitment agencies Receiving telephone calls from applicants Receiving and filing applications forms Copying documents, forms Filing information of new staff members Induction of new employees in administrative procedures

Telephone contact with n ewspapers / recruitment agencies

Receiving telephone calls from applicants

Receiving and filing applications forms

Copying documents, forms

Filing information of new staff members

Induction of new employees in administrative procedures

Marketing department Telecommunication support – handling telephone calls relating to the products and services. Printing and copying services Keeping the sales statistics of the business Handling of mail related to products and services Reception

Telecommunication support – handling telephone calls relating to the products and services.

Printing and copying services

Keeping the sales statistics of the business

Handling of mail related to products and services

Reception

Purchasing department Notification phase Order phase Post-order phase

Notification phase

Order phase

Post-order phase

Specific steps in the purchasing cycle Development and description of a need Choice of suppliers Determine prices Placing an order and concluding a contract Expediting and follow-up Receipt, inspection and distribution Handling errors and discrepancies Paying for the order Closing the order

Development and description of a need

Choice of suppliers

Determine prices

Placing an order and concluding a contract

Expediting and follow-up

Receipt, inspection and distribution

Handling errors and discrepancies

Paying for the order

Closing the order

Steps and documents Identification of a need – requisition form, order card, specification form Choice of suppliers – database of suppliers Determining prices – database of suppliers Determining prices – price lists, catalogues, quotations Issue order, sign contract - order form, specifications Follow up – Reminder form

Identification of a need – requisition form, order card, specification form

Choice of suppliers – database of suppliers

Determining prices – database of suppliers

Determining prices – price lists, catalogues, quotations

Issue order, sign contract - order form, specifications

Follow up – Reminder form

Steps and documents Handling errors – order form and consignment note Paying for the order – order form, delivery not, proof of receipt, invoice Closing the order – order form, delivery not, invoice, cheque

Handling errors – order form and consignment note

Paying for the order – order form, delivery not, proof of receipt, invoice

Closing the order – order form, delivery not, invoice, cheque

Value of the administration department Reception Management and administrative assistants Handling of mail Distributed early in the working day Not damaged Not lost or delivered to the wrong people Maintain an information system

Reception

Management and administrative assistants

Handling of mail

Distributed early in the working day

Not damaged

Not lost or delivered to the wrong people

Maintain an information system

Different types of work done in the administration department After completing this outcome, you will be able to: Identify the different roles in the department Discuss the importance of each category of work Identify the most senior person in the department, with a title where applicable Describe the line of authority from the most senior person in the department to the Board of Directors

After completing this outcome, you will be able to:

Identify the different roles in the department

Discuss the importance of each category of work

Identify the most senior person in the department, with a title where applicable

Describe the line of authority from the most senior person in the department to the Board of Directors

Work done in the administration department Reception area A good receptionist will have the following qualities: Personal neatness and a good posture Professional clothing Good communication skills Helpfulness Tact Friendliness Pleasant tone of voice Thorough knowledge of people Balanced personality Good listening skills Good human relations Knowledge of the company Good memory

Reception area

A good receptionist will have the following qualities:

Personal neatness and a good posture

Professional clothing

Good communication skills

Helpfulness

Tact

Friendliness

Pleasant tone of voice

Thorough knowledge of people

Balanced personality

Good listening skills

Good human relations

Knowledge of the company

Good memory

Reception area The reception area must be located in a central and easily accessible part of the building Visitors must be able to find the reception area easily – signs must be put up to direct visitors People with disabilities should have easy access to the reception area The reception area must be spacious so that everyone can move easily Adequate seating should be provided If there are security doors, they should not obstruct entrance to the reception are a

The reception area must be located in a central and easily accessible part of the building

Visitors must be able to find the reception area easily – signs must be put up to direct visitors

People with disabilities should have easy access to the reception area

The reception area must be spacious so that everyone can move easily

Adequate seating should be provided

If there are security doors, they should not obstruct entrance to the reception are a

Layout of reception area The décor should be tasteful and create a peaceful atmosphere There must be enough seating The space must be used sensibly and effectively A peaceful atmosphere must be created so that visitors can relax while they wait The reception area must always be clean and fresh

The décor should be tasteful and create a peaceful atmosphere

There must be enough seating

The space must be used sensibly and effectively

A peaceful atmosphere must be created so that visitors can relax while they wait

The reception area must always be clean and fresh

Main activities of the reception area Reception of parcels Check that the parcel is addressed to your organisation Make sure that the addressee works at your organisation Distribute it to the relevant person as soon as possible If the parcel looks suspicious, do not open it, but rather take it to the security personnel for investigation

Reception of parcels

Check that the parcel is addressed to your organisation

Make sure that the addressee works at your organisation

Distribute it to the relevant person as soon as possible

If the parcel looks suspicious, do not open it, but rather take it to the security personnel for investigation

Main activities of the reception area Reception of visitors Receiving visitors and directing them to the right person Assisting those visitors who do not know where to go or whom to see Bringing visitors to your senior once he or she is ready to receive them Serving tea and refreshments when required Co-ordinating your diary to ensure it corresponds with that of your senior so that you do not make appointments when he/she is already committed somewhere else Answering the senior’s telephone and to screen calls by making sure that he/she is the right person to speak to Making appointments for the senior with visitors who want to see him/her or when he/she must see another person Displaying information about the organisation, its services, products, staff and policies in the reception area.

Reception of visitors

Receiving visitors and directing them to the right person

Assisting those visitors who do not know where to go or whom to see

Bringing visitors to your senior once he or she is ready to receive them

Serving tea and refreshments when required

Co-ordinating your diary to ensure it corresponds with that of your senior so that you do not make appointments when he/she is already committed somewhere else

Answering the senior’s telephone and to screen calls by making sure that he/she is the right person to speak to

Making appointments for the senior with visitors who want to see him/her or when he/she must see another person

Displaying information about the organisation, its services, products, staff and policies in the reception area.

Management Assistant Junior administrative assistant Receiving and making telephone calls and take messages Sending and receiving faxes and e-mail Maintaining a paper and electronic filing system Photocopying and duplicating documents Keeping the office and/or reception area tidy Typing documents on the computer Handling all office equipment.

Junior administrative assistant

Receiving and making telephone calls and take messages

Sending and receiving faxes and e-mail

Maintaining a paper and electronic filing system

Photocopying and duplicating documents

Keeping the office and/or reception area tidy

Typing documents on the computer

Handling all office equipment.

Management Assistant Senior administrative assistant Receiving visitors Answering the telephone, screening calls and redirecting them if necessary Making telephone calls and liaising with clients Maintaining and updating the manager’s diary Co-ordinating meetings and making arrangements for such meetings Making travel arrangements

Senior administrative assistant

Receiving visitors

Answering the telephone, screening calls and redirecting them if necessary

Making telephone calls and liaising with clients

Maintaining and updating the manager’s diary

Co-ordinating meetings and making arrangements for such meetings

Making travel arrangements

Taking responsibility for stationery, petty cash Filing of the manager’s documents Preparing minutes and agendas for meetings Planning meetings and functions Dealing with confidential matters Supervising the manager’s office

Filing of the manager’s documents

Preparing minutes and agendas for meetings

Planning meetings and functions

Dealing with confidential matters

Supervising the manager’s office