Unit 1a


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Unit 1a

  1. 1. Standard Grade Administration Unit 1a Organisations of Departments
  2. 2. What is an Organisation Chart? <ul><li>An Organisation Chart is used to show the structure of a business. </li></ul><ul><li>An example is shown below: </li></ul>Mr Smith Managing Director Miss Jones Finance Manager Miss Murphy Sales Manager Miss Jackson Marketing Assistant Mr McPherson Accounts Assistant Miss Simpson Purchases Manager Miss Brown Buyer Mr Spacey Human Resources Manager Mr Philip Training Officer
  3. 3. What does an Organisation Chart Show? <ul><li>The management structure of the organisation. </li></ul><ul><li>The relationship between departments. </li></ul><ul><li>The reporting structure of the organisation. </li></ul><ul><li>The Span of Control: The number of staff a manager has the responsibility for . </li></ul>
  4. 4. Who would use an Organisation Chart? <ul><li>Visitors to an Organisation </li></ul><ul><li>New members of staff </li></ul><ul><li>Receptionist </li></ul>
  5. 5. Advantages of an Organisation Chart <ul><li>Employees can see who they are responsible for </li></ul><ul><li>Employees can see who they report to </li></ul><ul><li>Customers or visitors can gain an immediate impression of the company </li></ul><ul><li>New employees can get an overall feeling for the organisation. </li></ul>
  6. 6. Disadvantages of an Organisation Chart <ul><li>The chart can quickly become out of date as employees start and leave the company. </li></ul><ul><li>It can be difficult to understand if it contains too much information. </li></ul><ul><li>An organisation chart may not be big enough to show all of the employees in a large organisation. </li></ul>
  7. 7. What information does an organisation chart show? <ul><li>Span of Control: How many people a manager directly supervises. </li></ul><ul><li>Chain of Command: This shows who is responsible for who and how instructions are passed down the organisation. </li></ul><ul><li>Levels of Responsibility: This is the employee’s position within the organisation. The further up the “Chain of Command” the greater the responsibility. </li></ul>
  8. 8. <ul><li>Authority: How much power an employee has in the organisation. </li></ul><ul><li>Line Relationships: Shows the direct link between a supervisor and an employee. </li></ul><ul><li>Lateral Relationships: Describes the relationship between employees at the same level in the same department. </li></ul>
  9. 9. Organisation Chart – Example <ul><li>An Organisation Chart </li></ul><ul><li>will also show all of </li></ul><ul><li>the positions of </li></ul><ul><li>employee’s within the </li></ul><ul><li>Organisation. It will </li></ul><ul><li>give their names, </li></ul><ul><li>position, room </li></ul><ul><li>numbers, </li></ul><ul><li>telephone extension </li></ul><ul><li>and often a photograph. </li></ul>Mr Smith Managing Director Room: 101 Ext: 007
  10. 10. Lines of Communication <ul><li>Organisations must communicate their </li></ul><ul><li>information effectively and efficiently in </li></ul><ul><li>order to survive and grow. </li></ul><ul><li>When an organisation has many </li></ul><ul><li>levels there is more chance of </li></ul><ul><li>communication breaking down as </li></ul><ul><li>information is handled by more </li></ul><ul><li>people. </li></ul><ul><li>The Chain of Command shows who is </li></ul><ul><li>in charge of who. The higher an </li></ul><ul><li>employee is within the organisation the </li></ul><ul><li>greater the responsibility they </li></ul><ul><li>have. </li></ul><ul><li>The Chain of Command shown opposite is </li></ul><ul><li>Managing Director </li></ul><ul><li>Finance Manager </li></ul><ul><li>Accounts Assistant. </li></ul>Managing Director Finance Manager Accounts Assistant
  11. 11. Line Relationships <ul><li>Line Relationships exist between line managers and staff directly below them. Staff always </li></ul><ul><li>report to their line manager directly with and problems they may have. </li></ul><ul><li>E.g. Miss Murphy and Miss Jackson have a Line Relationship. </li></ul>Miss Murphy Sales Manager Miss Jackson Marketing Assistant
  12. 12. Lateral Relationships A lateral relationship describes the relationship of employees who are at the same level and report to the same line manager. A lateral relationships are shown by HORIZONTAL lines on an organisation chart. E.g. Miss Jones, Mr Murphy, Miss Simpson and Mr Spacey have a Lateral Relationship. They have the same level of responsibility and cannot give each other an order. Mr Smith Managing Director Miss Jones Finance Manager Miss Murphy Sales Manager Miss Simpson Purchases Manager Mr Spacey Human Resources Manager
  13. 13. Organisation Structure <ul><li>There are 2 main types of Organisational </li></ul><ul><li>Structure </li></ul><ul><li>TALL </li></ul><ul><li>FLAT </li></ul><ul><li>Tall Organisations </li></ul><ul><li>Many levels of management </li></ul><ul><li>Managers has a narrow Span of Control. </li></ul><ul><li>Flat Organisations </li></ul><ul><li>Fewer levels of management </li></ul><ul><li>Managers have a wider Span of Control. </li></ul>M.D. Team Leader Production Manager Office Manager Office Junior M.D. ProductionManager Assistant
  14. 14. Tall Organisation <ul><li>Examples of Tall Organisations are: </li></ul><ul><li>Police </li></ul><ul><li>School </li></ul><ul><li>Army </li></ul><ul><li>Advantages: </li></ul><ul><li>Easier for managers to supervise staff. </li></ul><ul><li>More promotion opportunities. </li></ul><ul><li>Employees will know their immediate boss personally. </li></ul><ul><li>Disadvantages : </li></ul><ul><li>It will take longer to announce decisions in the organisation. </li></ul><ul><li>Employees may not get the chance to use initiative or initiate their own ideas. </li></ul><ul><li>It may be costly to pay all the levels of management meaning less money being spent on staff wages and bonus. </li></ul>M.D. Team Leader Production Manager Office Manager Office Junior
  15. 15. Flat Organisation <ul><li>Examples of Flat Organisations are: </li></ul><ul><li>Small shops </li></ul><ul><li>Small organisations </li></ul><ul><li>Take-away Restaurants </li></ul><ul><li>Advantages: </li></ul><ul><li>Employees have more responsibility making them feel more motivated. </li></ul><ul><li>Employees are involved in decision making. </li></ul><ul><li>More efficient communication as there are less levels of management . </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Increased workload for employees can cause stress. </li></ul><ul><li>Fewer management opportunities. </li></ul><ul><li>Wider responsibilities may require additional training which can be costly. </li></ul>M.D. ProductionManager Assistant
  16. 16. Changing the Organisational Structure <ul><li>A organisational structure may change in </li></ul><ul><li>many ways. The main ways this can </li></ul><ul><li>happen are: </li></ul><ul><li>Growth </li></ul><ul><li>This occurs when the organisation has been </li></ul><ul><li>successful and decides to expand. They will </li></ul><ul><li>employ more people, produce more products and may move to larger premises. </li></ul>
  17. 17. <ul><li>Downsizing </li></ul><ul><li>This occurs when the organisation becomes smaller. </li></ul><ul><li>staff are made redundant in order for the organisation </li></ul><ul><li>to reduce costs to make the organisation more </li></ul><ul><li>efficient. Other staff may have to take on addition </li></ul><ul><li>responsibility. </li></ul><ul><li>De-layering </li></ul><ul><li>This occurs when the organisation feels their current </li></ul><ul><li>structure is no longer working very well. This will </li></ul><ul><li>result n managers having a wider Span of Control and </li></ul><ul><li>employees taking on more responsibility. </li></ul>
  18. 18. <ul><li>Outsourcing </li></ul><ul><li>This occurs when the organisation wants to </li></ul><ul><li>concentrate on its CORE activities instead of undertaking certain activities. In this case an organisation will sell their activities to another company. </li></ul><ul><li>For example , a company may decide that instead of doing their own accounts they will outsource them to an accounting firm. </li></ul>
  19. 19. <ul><li>Centralisation of Departmental Function </li></ul><ul><li>This will happen certain activities that are undertaken </li></ul><ul><li>in all departments are centralised in one department. </li></ul><ul><li>For example, the administrative function may be </li></ul><ul><li>centralised by moving all of the administration </li></ul><ul><li>assistants from each functional department to a </li></ul><ul><li>centralised department. </li></ul><ul><li>Decentralisation of Departmental Function </li></ul><ul><li>This occurs when one department closes and the staff </li></ul><ul><li>are assigned to other departments. </li></ul>