1. Human Resources
• The department within a business that is responsible for the
employees within a company.
• Hiring and firing of employees.
• Training of new and existing employees.
• Dealing and helping with any employees problems such as illness.
2. Marketing and Sales
• Responsible for selling the companies products and maintaining the
relationship with the customer.
Marketing – Promoting a companies product, advertising, getting
people interested in a product.
• Money, money, money.
• The measurement and reporting of all things relating to the money within a
• Responsibilities include raising money to start a business, paying taxes on time and
paying for goods, services or wages.
• Any action concerning the finance within a business must be recorded and stored by
the accounting department.
the management of money
the money required to start and run a business
• We shall now take a look at the organisation inside a
company or business.
• The business can be broken down into separate
departments that each provide a separate yet important
1. Centralisation and Decentralisation
• In centralized organizations the top management makes all the key
In decentralized organization the lower-level personnel have a greater say
in decision making.
2. Span of Control
• Span of control is the number of subordinates in an organisation who are
supervised by managers.
The span of control determines the number of levels and managers in an
• Formalization is the degree to which jobs within an organization are
On highly formalized jobs employees are merely expected to follow rules
and instructions laid down without much or any freedom.
In departmentalisation jobs are grouped together so that common tasks
can be coordinated.
What is an Organisation Chart?
• An Organisation Chart is used to show the structure of a business.
• An example is shown below:
What does an Organisation Chart Show?
The management structure of the organisation.
The relationship between departments.
The reporting structure of the organisation.
The Span of Control: The number of staff a manager has the
Who would use an Organisation Chart?
Visitors to an Organisation
New members of staff
Organisation Chart – Example
An Organisation Chart
will also show all of
the positions of
employee’s within the
Organisation. It will
give their names,
and often a photograph
There are 2 main types of Organisational
Many levels of management
Managers has a narrow Span of Control.
Fewer levels of management
Managers have a wider Span of Control.
Advantages and disadvantages of flat
Employees have more responsibility making
them feel more motivated.
Employees are involved in decision making.
More efficient communication as there are
less levels of management.
Increased workload for employees can cause
Fewer management opportunities.
Wider responsibilities may require additional
training which can be costly.
• Organisation by type
• Global businesses – complex organisation structures
• National – organisation possibly stretches throughout the
• Regional – could be through a county or wider area (North
West, South East, etc.)
• Local – small organisations serving local area or community
Lines of Communication
The Chain of Command shown opposite is