Unit 1a - Organisation of Departments

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Unit 1a - Organisation of Departments

  1. 1. Unit 1a Organisation of Departments
  2. 2. Learning Outcomes <ul><li>Introduction to Organisations </li></ul><ul><li>Introduction to Organisation Charts </li></ul><ul><li>Caledonian Health & Fitness Organisation Chart </li></ul><ul><li>Lines of Responsibility </li></ul><ul><li>Lines of Authority </li></ul><ul><li>Lines of Communication </li></ul><ul><li>Relationships within an Organisation </li></ul><ul><li>The Chain of Command </li></ul><ul><li>Benefits and Costs of an Organisation Chart </li></ul><ul><li>Types of Organisational Structure </li></ul><ul><li>Change of Organisational Structure </li></ul>
  3. 3. In order for a business to SURVIVE it must be: ORGANISED and have GOOD COMMUNICATIONS This will enable it to GROW and become more successful
  4. 4. What is an Organisation Chart? <ul><li>An organisation chart is used to provide a ‘picture’ of who is in the business. </li></ul><ul><li>It is used to show the STRUCTURE of the business. </li></ul>
  5. 5. What Information do Organisation Charts Show? <ul><li>Organisation charts are used to show the following: </li></ul><ul><ul><li>Lines of RESPONSIBILITY (who you will look after; be responsible for) </li></ul></ul><ul><ul><li>Lines of AUTHORITY (the way in which instructions are passed down) </li></ul></ul><ul><ul><li>Lines of COMMUNICATION (the way in which information is passed throughout the organisation) </li></ul></ul>
  6. 6. Caledonian Health & Fitness 12 Mr Burns Managing Director Mr B Wallace Personnel Manager Mrs A MacDonald Sales/ Marketing Manager Miss J Montrose Purchases Manager Mr H Nichols Buyer Mrs L McKenna Finance Manager Mr N Millar Admin Manager Mr Ray Cruit Recruitment Officer Miss T Raynor Training Officer Mrs R Ambleon Marketing Assistant Mr V Smart Sales Rep Mr B Goodman Wages Officer Miss H Munro Admin Assistant
  7. 7. Lines of Responsibility <ul><li>The lines of responsibility show WHO exactly is in charge of others. </li></ul><ul><li>The example above shows that Mrs MacDonald is in charge of all the work that is carried out by both Mrs Ambleon and Mr Smart </li></ul><ul><li>Mrs MacDonald is their LINE MANAGER </li></ul>Mrs R Ambleon Marketing Assistant Mrs A MacDonald Sales/Marketing Manager Mr V Smart Sales Rep
  8. 8. Lines of Authority <ul><li>In an organisation chart the lines of authority show us who gives instructions to others so that they carry out certain tasks </li></ul><ul><li>The person who gives you direct instructions is called your LINE MANAGER i.e the person who you report to </li></ul>What was the first thing your teacher asked you to do when you entered the class today? (Sit down quietly? Get your resource book out quickly? Hand in your homework?) Your teacher gives you instructions to enable you to get ready to learn and to get the most out of the lesson. The example here shows that Mr Burns gives Mr Wallace instructions on how he wants the Personnel Department to operate Mr R Burns Managing Director Mr B Wallace Personnel Director
  9. 9. Lines of Communication <ul><li>Mr Burns is considering buying new equipment for the gymnasiums and has asked Mr Nichols to find the best supplier. </li></ul><ul><li>Having carried out his research, Mr Nichols finds a new supplier offering amazing discounts. </li></ul><ul><li>Should Mr Nichols go ahead and order from the new supplier? </li></ul>In order for information to be communicated effectively it is important that information flows UP and DOWN throughout the organisation. This is key to allowing good decision-making. In which direction should information flow? Mr H Nichols Buyer Miss J Montrose Purchases Manager Mr R Burns Managing Director
  10. 10. Copy Caledonian Health & Fitness’ Organisation Chart into your jotter and answer the following questions <ul><li>List the people who work in the Sales/Marketing Department. </li></ul><ul><li>Who is Mr Nichols’ line manager? </li></ul><ul><li>Mrs Ambleon has been asked to design a leaflet to recruit new members. She is considering promoting a special offer however is unsure how much discount to give. Mrs A MacDonald is out at a meeting – who should Mrs Ambleon report to? </li></ul><ul><li>Mr Burns recently purchased new software to enable customer records to be stored more efficiently however is aware that staff will need training. Who should Mr Burns speak to first regarding the training program? Who will be responsible for the training program? Justify your answer? </li></ul>
  11. 11. Solutions <ul><li>List the people who work in the Sales/Marketing Department. Mrs A MacDonald; Mrs R Ambleon; and, Mr V Smart </li></ul><ul><li>Who is Mr Nichols’ line manager? Miss J Montrose, Purchases Manager </li></ul><ul><li>Mrs Ambleon has been asked to design a leaflet to recruit new members. She is considering promoting a special offer however is unsure how much discount to give. Mrs A MacDonald is out at a meeting – who should Mrs Ambleon report to? Mr R Burns, Managing Director </li></ul><ul><li>Mr Burns recently purchased new software to enable customer records to be stored more efficiently however is aware that staff will need training. Who should Mr Burns speak to first regarding the training program? Mr B Wallace, Personnel Manager </li></ul><ul><li>Who will be responsible for the training program? Justify your answer? Mr R Cruit as he is responsible for delivering the training programs to all the members of staff and recording their level of progress </li></ul>
  12. 12. Relationships within Departments <ul><li>LINE RELATIONSHIP </li></ul><ul><ul><li>Relationship between managers and the staff directly below them </li></ul></ul><ul><li>LATERAL RELATIONSHIP </li></ul><ul><ul><li>Relationship between people on the same level who report to the same Line Manager </li></ul></ul><ul><li>Identify the LINE and LATERAL relationships which exist at Caledonian Health & Fitness </li></ul>
  13. 13. Solutions <ul><li>LINE RELATIONSHIPS </li></ul><ul><ul><li>Mr Burns and Mr Wallace </li></ul></ul><ul><ul><li>Mr Burns and Mrs MacDonald </li></ul></ul><ul><ul><li>Mr Burns and Miss Montrose </li></ul></ul><ul><ul><li>Mr Burns and Mrs McKenna </li></ul></ul><ul><ul><li>Mr Burns and Mr Millar </li></ul></ul><ul><ul><li>Mr Wallace and Mr Ray Cruit </li></ul></ul><ul><ul><li>Mr Wallace and Miss T Raynor </li></ul></ul><ul><ul><li>Mrs MacDonald and Mrs Ambleon </li></ul></ul><ul><ul><li>Mrs MacDonald and Mr V Smart </li></ul></ul><ul><ul><li>Miss Montrose and Mr Nichols </li></ul></ul><ul><ul><li>Mrs McKenna and Mr Goodman </li></ul></ul><ul><ul><li>Mr Millar and Miss Munro </li></ul></ul><ul><li>LATERAL RELATIONSHIPS </li></ul><ul><ul><li>Every Manager has a lateral relationship with one another </li></ul></ul><ul><ul><li>Mr Ray Cruit and Miss T Raynor </li></ul></ul><ul><ul><li>Mrs Ambleon and Mr Smart </li></ul></ul>
  14. 14. What is the CHAIN OF COMMAND? <ul><li>The CHAIN OF COMMAND is the way in </li></ul><ul><li>which instructions are passed down through </li></ul><ul><li>each level in the organisation. </li></ul>Mr Burns is unhappy with the current supplier of the Gym equipment as he feels the quality of the equipment is poor. WHO DOES MR BURNS CONTACT TO DISCUSS THIS ISSUE? Mr Burns informs Miss Montrose that a new supplier needs to be found WHO DOES MISS MONTROSE CONTACT TO DISCUSS THIS ISSUE? Miss Montrose explains to Mr Nichols that he must find a better supplier – one which is reliable and offers high quality products Mr R Burns Managing Director Miss J Montrose Purchases Manager Mr H Nichols Buyer
  15. 15. Activities <ul><li>Complete the following tasks in your activities booklet: </li></ul><ul><ul><li>Question 1: What is an organisation chart? </li></ul></ul><ul><ul><li>Question 2: The Power & Light Company </li></ul></ul><ul><ul><li>Question 3: Identifying relationships in an organisation </li></ul></ul><ul><ul><li>Question 4: Constructing an organisation chart </li></ul></ul><ul><li>GROUP ACTIVITY </li></ul><ul><ul><li>Create an organisation chart of your Admin class! You could pick names out of a hat to decide roles and job titles. Who can come up with a creative name for your company? </li></ul></ul>
  16. 16. Who would find an Organisation Chart useful? <ul><li>VISITORS to the organisation (gives them an overall impression of the size and structure of the business and they are able to identify who they wish to see) </li></ul><ul><li>NEW MEMBERS OF STAFF (able to identify who they will be reporting to and working alongside) </li></ul><ul><li>RECEPTIONIST (useful in assisting visitors to the correct department etc) </li></ul>As the new Administration Assistant I was pleased to be given a copy of the organisation chart as it helped me to learn the names of other colleagues and to know where to find them
  17. 17. Advantages & Disadvantages of using an Organisation Chart <ul><li>Able to see the overall size of the organisation </li></ul><ul><li>Visitors can identify who it is they are going to meet with </li></ul><ul><li>Employees are able to see who they are going to be working with and reporting to </li></ul><ul><li>Can be very expensive to maintain – if new employees join the business or if current employees leave, then a new chart needs to be created </li></ul><ul><li>There may not be enough information on the chart eg. Is there a phone extension number? Is there a photo of the employee? Is there a room number? </li></ul>ADVANTAGES DISADVANTAGES
  18. 18. Activities <ul><li>Complete the following tasks in your activities booklet: </li></ul><ul><ul><li>Question 5: Word bank </li></ul></ul><ul><ul><li>Question 6: identify features of an organisation chart </li></ul></ul>
  19. 19. Types of Organisational Structures <ul><li>There are two main types of organisational structures: </li></ul>TALL FLAT FEW levels of management MANY levels of management
  20. 20. What is a TALL Structure? <ul><li>A Tall structure has many levels of management. </li></ul><ul><li>There can be a feeling in this type of organisation that there are ‘too many bosses’! </li></ul><ul><li>Tends to be seen in larger organisations eg. Civil Service; Hospitals; Universities; Armed Forces etc </li></ul>
  21. 21. A Tall Structure How many levels are in this structure? For those employees who work on level 8 there are many opportunities for promotion. There are many lines of communication which means that before a decision can be made many people have to share their ideas. This can take a very long time. 1 2 3 4 5 6 7 8
  22. 22. What is a FLAT Structure? <ul><li>A Flat structure has fewer levels of management. </li></ul><ul><li>Employees are given GREATER RESPONSIBILITY as managers have to DELEGATE tasks to reduce their own workload. </li></ul><ul><li>Egs IBM; Virgin Group; Royal Bank of Scotland; etc </li></ul>
  23. 23. A Flat Structure <ul><li>There are fewer lines of </li></ul><ul><li>Communication which results in </li></ul><ul><li>DECISION-MAKING BEING </li></ul><ul><li>VERY FAST – able to </li></ul><ul><li>respond to changes </li></ul><ul><li>quickly. </li></ul>How many levels are in this structure? Employees feel more valued and are more motivated to work. 1 2 3 4
  24. 24. Change of Organisational Structure <ul><li>Businesses may decide to change their structure for a number of reasons: </li></ul><ul><ul><li>To GROW – employ more staff; introduce new products/services etc </li></ul></ul><ul><ul><li>To DOWNSIZE – take away some of its activities </li></ul></ul><ul><ul><li>To DELAYER – get rid of a few levels of management in order to cut costs </li></ul></ul><ul><ul><li>To OUTSOURCE – this means asking other businesses to come in and do certain tasks for you because they are more skilled eg. School giving the canteen to an outside caterer to provide the meals. </li></ul></ul>
  25. 25. Activities <ul><li>Complete the following tasks in your activities booklet: </li></ul><ul><ul><li>Question 7: Advantages and disadvantages of a Tall structure </li></ul></ul><ul><ul><li>Question 8: Advantages and disadvantages of a Flat structure </li></ul></ul><ul><ul><li>Question 9: Key terms </li></ul></ul><ul><ul><li>Question 10: Effects of growth on an organisation chart </li></ul></ul>

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