2. Learning Objectives
This chapter will explain:
Organizational charts
Simple hierarchical structures
The main leadership styles
The benefits of membership of a trade union.
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3. What is organizational
structure?
Organizational structure refers to the levels of
management and division of possibilities within an
organization
Chain of Command – The structure in an organization
which allows instructions to be passed down from senior
management to lower levels of management.
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4. Advantages of an organisation chart
The chart shows how everybody is linked together within the
organization. All employees are aware of which
communication channel is used to reach them with messages
and instructions.
Each individual can see their own position within the
organization. They can identify who they are accountable to
and who they have authority over. Employees can see who
they should take orders from.
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5. Cont---
It shows the links and relationships between different
departments within the organization.
Everyone is in a department and this gives them a sense
of belonging.
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6. Chain of command and span of
control
The span of control is the number of subordinates working
directly , under a manager.
Look at the two organizational charts. There are two essential
differences between them.
Business A has a tall structure and a long chain of command
Business B has a wide structure and a short chain of
command.
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8. Advantages of short chains of
command
Communication is quicker and more accurate. Each message
has fewer levels to pass through before reaching the
intended destination.
Top managers are less remote from the lower level of the
hierarchy. These top managers should be more in touch with
people below them as there are fewer management levels
to get to know.
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9. CONT..
Spans of control will be wider. This means that each
manager is responsible for more subordinates.
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12. Line Managers and Staff Managers
Line Managers – They have direct responsibility over
people below them in the hierarchy of a business.
Staff Managers - Specialists who provide support,
information and assistance to line managers.
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13. The Role and functions of
Management
Planning: Planning for the future of the organization
involves setting aims or targets, e.g.: ‘we should plan to
increase sales of our new fruit juice range by 50% in the
next 3 years’.
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14. Organizing
Organizing : A manager cannot do everything. Tasks must
be delegated to others in the organization. These people
must have the resources to be able to do these tasks
successfully, . It is therefore the manager’s responsibility to
organize people and resources effectively.
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15. Coordinating
Coordination : This means ‘bringing together’. A manager
may be very good at planning and organizing but may
have failed to ‘bring people in the organization together’.
Commanding : Many people think that this is all that
managers do! In fact, the task of management is more
concerned with guiding, leading and supervising people
than just telling them what to do – although this is
important too.
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16. Controlling
Controlling: This is a never-ending task of management.
Managers must try to measure and evaluate the work of
all individuals and groups to make sure they are on target,
There is little point in planning and organizing if managers
then fail to check that the original aims are being met.
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19. Advantages of delegation for the
manager
Managers cannot do every job themselves
Managers are less likely to make mistakes if some of
the tasks are being performed by their subordinates.
Managers can measure the success of their staff more
easily. They can see how well they have done in
performing the tasks delegated to them.
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20. Advantages of delegation for the
subordinate
The work becomes more interesting and rewarding
The employee feels more important and believes that
trust is being put in them to perform a job well.
Delegation helps to train workers and they can then
make progress in the organization, giving them career
opportunities.
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21. Why might a manager not
delegate?
Despite the advantages of delegation, there are some
managers who are reluctant to delegate.
Some may be afraid that the subordinates might fail
and the manager wants to control everything by
themselves.
22. CONT..
Also, there is a risk that the subordinates might do a
better job than the manager! This could make the
manager feel very insecure.
There needs to be an increase in trust in order to
reduce control over workers
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24. Why is it important to have good
managers?
A good manager should:
Motivate employees
Give guidance and advice to employees they manage
Inspire employees they manage to achieve more than
they thought possible
Manage resources effectively and keep costs under
control
Increase profitability of the business.
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25. Revision Summary – Effective Managers
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Intuitive
Coordinate
Departments
Plan for the
future
Intelligence
Tasks
Self-confidence Determination
Organise and
delegate
Command and
guide others
Control and assess the
work of departments
Qualities
Good
Communication
Skills
Intuitive
EFFECTIVE MANAGERS
26. Styles of Leadership
There are different approaches to leadership that are
adopted and these can be summarized into three main
leadership styles.
Autocratic leadership
Democratic leadership
Laissez-faire leadership
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27. Cont---
Autocratic Leadership - Where the manager expects to
be in charge of the business and to have their orders
followed. (See book)
Democratic Leadership - Gets employees involved in the
decision-making process. (See book)
Laissez-faire – Makes the broad objectives of the
business known to employees, but then they are left to
make their own decisions and organize their own work.
(See book)
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28. Trade Union and Closed Shop
Trade Union – A group of workers who have joined
together to ensure their interests are protected.
Closed Shop – All employees must be a member of the
same trade union.
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