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Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
Orgstructures (2)
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Orgstructures (2)

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  • 1. http://www.bized.co.ukOrganisational Structures BTEC Business Copyright 2006 – Biz/ed
  • 2. http://www.bized.co.uk Why Have a Structure?• All businesses have to organise what they do• A clear structure makes it easier to see which part of the business does what• There are many ways to structure a business Copyright 2006 – Biz/ed
  • 3. http://www.bized.co.uk Some Key Terms• Flat or tall structure• Span of control• Chain of command• Hierarchy• Delegation• Empowerment Copyright 2006 – Biz/ed
  • 4. http://www.bized.co.ukWays to Structure a Business• By function: arranging the business according to what each section or department does• By product or activity: organising according to the different products made• By area: geographical or regional structure Copyright 2006 – Biz/ed
  • 5. http://www.bized.co.ukWays to Structure a Business• By customer: where different customer groups have different needs• By process: where products have to go through stages as they are made• What are the advantages/disadvantages of different types of business structure? Copyright 2006 – Biz/ed
  • 6. http://www.bized.co.uk Pros and Cons of Different Structures • This depends on the business type, size and structure used • Let’s look at a functional structure: Chief Executive Board of DirectorsProduction Marketing Accounts Personnel IT Copyright 2006 – Biz/ed
  • 7. http://www.bized.co.uk Functional Structure Advantages Disadvantages• Specialisation – each • Closed department focuses communication on its own work could lead to lack of focus• Accountability – • Departments can someone is become resistant responsible for the to change section • Coordination• Clarity – know your may take too long and others’ roles • Gap between top and bottom Copyright 2006 – Biz/ed
  • 8. http://www.bized.co.uk An Example of Organisation by Product/Activity Hewlett Packard Imaging and Personal Enterprise HP Financial HP ServicesPrinting Group Systems Group Systems Group Services Copyright 2006 – Biz/ed
  • 9. http://www.bized.co.uk Organisation by Product/Activity Advantages Disadvantages• Clear focus on • Duplication of market segment functions (e.g. helps meet different sales force customers’ needs for each division)• Positive competition between divisions • Negative effects of• Better control as competition each division can act • Lack of central as separate profit control over each centre separate division Copyright 2006 – Biz/ed
  • 10. http://www.bized.co.uk Organisation by Area Hewlett-Packard’s Headquarters Worldwide Hewlett Packard Americas Europe, Middle East, Africa Asia PacificHouston, Texas Geneva, Switzerland Hong Kong Copyright 2006 – Biz/ed
  • 11. http://www.bized.co.uk Organisation by Area Advantages Disadvantages• Serve local needs • Conflict between better local and central• Positive competition management• More effective • Duplication of communication resources and between firm and functions local customers Copyright 2006 – Biz/ed
  • 12. http://www.bized.co.uk Other Organisational Structures• By Customer: Similar effects to structuring by product• By Process: Similar to structuring by function Copyright 2006 – Biz/ed
  • 13. http://www.bized.co.uk Organisational Structures• Now go to the Activity for more…… Copyright 2006 – Biz/ed

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