http://www.bized.co.ukOrganisational Structures      BTEC Business                         Copyright 2006 – Biz/ed
http://www.bized.co.uk    Why Have a Structure?• All businesses have to organise  what they do• A clear structure makes it...
http://www.bized.co.uk        Some Key Terms• Flat or tall structure• Span of control• Chain of command• Hierarchy• Delega...
http://www.bized.co.ukWays to Structure a Business• By function: arranging the business  according to what each section  o...
http://www.bized.co.ukWays to Structure a Business• By customer: where different customer  groups have different needs• By...
http://www.bized.co.uk      Pros and Cons of Different             Structures • This depends on the business type,   size ...
http://www.bized.co.uk       Functional Structure  Advantages                  Disadvantages• Specialisation – each   •   ...
http://www.bized.co.uk      An Example of Organisation          by Product/Activity                                 Hewlet...
http://www.bized.co.uk          Organisation by          Product/Activity  Advantages                Disadvantages• Clear ...
http://www.bized.co.uk  Organisation by Area         Hewlett-Packard’s      Headquarters Worldwide                      He...
http://www.bized.co.uk       Organisation by Area   Advantages               Disadvantages• Serve local needs      • Confl...
http://www.bized.co.uk      Other Organisational          Structures• By Customer:  Similar effects to structuring  by pro...
http://www.bized.co.uk  Organisational Structures• Now go to the Activity for more……                              Copyrigh...
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Orgstructures (2)

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Orgstructures (2)

  1. 1. http://www.bized.co.ukOrganisational Structures BTEC Business Copyright 2006 – Biz/ed
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 13. http://www.bized.co.uk Organisational Structures• Now go to the Activity for more…… Copyright 2006 – Biz/ed

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