2. Organisational Structure
In order to achieve its objectives, a firm relies on 2 types of
relationship between personnel. One is “formal” and the other
is “informal”.
Organisational Structure is concerned with official lines of
communication followed by employees in carrying out
management decisions.
It is influenced by the size of the organisation. There are four
forms of organisational structure:
1. Line organisation
2. Staff organisation
3. Functional organisation
4. Committee organisation
3. Line Organisation
Line organisational structure shows authority directed and
delegated from top to bottom.
Each person is directly responsible to the person above him/her
The higher the person in authority the greater is the
responsibility and those in authority can assign tasks in order to
achieve objectives
1. Line organisation is suited for small businesses since it is:
2. Simple and easy to understand
3. Quick decisions can be made
4. Flexible and can adapt to change
5. Easy to control
However, it restricts the inclusion of specialist personnel
services that may be required.
5. Functional Organisation
This organisational structure seeks to separate the basic
functions of a business into specialist departments e.g.
sales, production
The head of each department is ultimately responsible
for all aspects of his department
This is used in bigger businesses and is like a pure line
organisation within a larger firm
6.
7. The difference between line and
functional
Under functional the individual departments and department
managers are expected to communicate and instruct each other
The heads of department supervise and control but sometimes may
be acting under the advice of another HOD
The span of control is ‘wide’
Conflict can come about if different departments disagree over
issues
8. Line and Staff Organisation
As a company grows there is need for specialist help and
support staff to work with managers and departments
For example an advertising expert may assist a
marketing manager to develop a sales strategy for a
new product
The staff adviser has no authority over line workers but
may be empowered to manage workers from
departments.
9. Committee Organisation***
A committee is a group of persons delegated by higher
authority to achieve an objective.
They are usually a group of specialist empowered to
investigate a problem/area, and recommend solutions.
Types
Ad hoc committee is appointed to achieve one task and is
disbanded when the task is complete. E.g. School Book
Committee
A standing committee has a more permanent role in the
organisation and would meet at regular intervals.
10. Chain of Command
A chain of command is established from higher authority
to those of lower status.
Most companies are organised in the form of a pyramid
The person at the top of the pyramid has the most
authority and as we move down the pyramid less
authority
11.
12. Span of Control
The span of control looks at the relationship between
those in authority and those whom they manage
It is the number of subordinates a manager supervises
A number of factors influence the span of control:
Complexity of work
Self discipline/motivation of workers
Method of communication
Frequency of supervision
Capability of the manager
See diagram on page 55.
15. Organisational Charts
Organisational Charts illustrate how an organisation is
structured and reveal the links between the different
functions of the organisation.
The size of the firm influences the content of the chart
Charts may be vertical, circular or horizontal
19. Leadership
Leadership is the action of leading.
A leader is someone who inspires passion and motivation
in followers.
Leadership style refers to a leader’s pattern of behavior,
and the ways in which leaders take decisions, manage
change and deal with their staff.
20. Characteristics of a Good
Leader
Knowledge of the business in general
Exert influence
Dedication and ability to work hard long hours
Efficiency
Ability to get the cooperation of subordinates
Integrity
Ability to work with people
Setting a good example
See more on page 57.
21. Types of Leadership styles***
Autocratic – one who takes decisions alone, with no discussion
Democratic – one who engages in discussion with workers before taking
decisions
Paternalistic – this lead ‘decides what is best’ for the business but seeks
the opinion of staff and will explain decisions to them. He does not allow
them to make the final decision.
Bureaucratic – one who uses rigid and complex rules and procedures to
direct and lead, there is no flexibility and job roles are well defined.
Laissez-Faire – one who leaves colleagues to do their own work, without
supervision or control.
22.
23. Causes of Conflict
Conflict means disagreement. This can cause serious
problems for an organisation if they are not settled or
resolved quickly. The main causes of conflict are:
Management Style
Competition for scarce resources
Lack of communication
Clash of personalities
Working conditions
Conflict resolution-
https://www.youtube.com/watch?v=QyXFirOUeUk
24. Management Style
A manager’s style of managing or communicating with
employees can be a cause for conflict.
Managers who practice autocratic leadership, leaving no
room for consultation or discussion tend to have
conflicts, especially if employees are highly educated.
25. Competition for scarce
resources
Conflicts often occur when more resources are allocated
to one department or manager than others
Within the department conflict may arise if two workers
working on similar tasks are allocated unequal amounts
of resources
26. Lack of communication
When communication breaks down it often leads to
misunderstandings and misperceptions
This may lead to disagreements about goals, roles or
intentions, which result in conflict
Sometimes one person may deliberately withhold
information so as to sabotage or embarrass a colleague
27. Clash of Personalities
Some people have quiet, reserved personalities and are
always polite and try to keep peace, even if it means
taking the blame for something
Others may be combative, and prefer an argumentative
approach and always try to win arguments by being
aggressive
If two argumentative people meet in an organisation it
may lead to conflicts.
28. Working Conditions
When workers are displeased to their working conditions
this can lead to conflict – safety concerns, health
hazards, long work hours etc
If salaries are inadequate, it causes conflict
These conflicts can result in industrial action being
taken and Trade Union involvement
29. Trade Unions
Explain to students that workers standing together asking for pay
increases or better working conditions stand a better chance at being
heard than an individual worker asking for the same thing.
Trade Union – is an association of workers, of the same occupation, or with
a common employer, who have come together to protect and seek the
interests of all the members.
Examples: TTUTA – Trinidad and Tobago Unified Teacher’s Association, PSA
Public Services Association, OWTU Oilfield Workers’ Trade Union
30. Collective Bargaining
Collective Bargaining is the process by which trade union officials
representing workers meet with employers to negotiate for higher wages
and better terms and conditions of work
The word “collective” is used since workers do not go individually to make
requests, the union bargains for all workers as a group
Usually there is discussion and compromise, often there is disagreement
Collective Bargaining seeks to ensure:
1. Higher wages, bonuses and overtime benefits
2. Improved terms and conditions of employment
31. Industrial Unrest/Action
Industrial Unrest is the term used to describe activities
undertaken by workers when they protest against pay or
terms and conditions of work. It includes:
1. Strikes – mass refusal by employees to work
2. Sit-Ins – persons non-violently occupying an area for
protest
3. Sit-downs – workers on strike occupying the area in
which they would be working and refusing to leave
4. Work to Rule – workers ‘follow the rules’ obeying each
and every rule to the letter, reducing productivity
32. Role of Trade Unions**
1. TUs secure higher wages for their members.
2. TUs secure improved terms and conditions of employment – safer,
healthier working environment, hours of work, time-off periods,
maternity leave etc.
3. TUs hold training sessions for workers – motivational lectures or
education on the rights of workers.
4. TUs ensure there is equity of treatment of all workers.
5. TU’s meet with government to represent worker’s view with respect to
issues that affects workers.
33. Employer Strategies to gain an
upper hand
Negotiations – face to face negotiations with workers or union leaders to
reach a compromise solution
Public Relations – using the media to try to gain public support for
employer’s position in the dispute
Threats of redundancies – these put pressure on unions to agree to a
settlement, but this could be seen by the employees as ‘bullying’
Scab Labour: a scab worker is one who is employed temporarily to
replace a worker who is on strike. Also called “strike breakers”
34. Employer Strategies to gain
an upper hand
Changes of contract – if employees take advantage of their
contracts to work to rule or ban overtime, then new
contracts would be issued that may insist on higher work
rates or overtime working
Closure – closure of the business/factory would certainly
stop the dispute. This is extreme, and would only be done
if the demands of the union would lead to a serious loss
being made for the business
Lockouts – short term closure of the business to prevent
employees being paid, workers who are not keen o losing
pay may pressure the union to agree to a settlement
35. Mediation and Arbitration*
When an industrial dispute cannot be resolved by
negotiations between union and employer, the
government provides a mechanism to overcome the
conflict.
This approach is based on mechanism (or conciliation)
and arbitration.
https://www.youtube.com/watch?v=TfT1bgsyYGM
36. Mediation
Mediation or conciliation is a process whereby a
neutral third party, agreeable to both the union and the
employers, attempts to find ways to facilitate a
continuation of the negotiation process.
Arbitration
This is only possible if both parties agree to it.
This involves bringing in a neutral third party to hear
arguments on both sides and impose a final solution.
The decision of the arbitrator is binding on the parties.
The industrial court serves as an arbitrator.
37.
38. How can good relations between managers and
employees be achieved?
Treat each other with respect and mutual understanding.
Workers and employers need to understand each other’s needs and goals
and work together to attain them.
Enable frequent two-way communication to discuss issues of common
interest. This reduces misunderstandings.
Adopt a good leadership style that is appropriate for the workers being
managed.
Provide good working conditions for employees and managers.
Management should work towards satisfying workers’ motivational needs
for varied work that allows job enrichment.
Clear conflict resolution procedures should be followed when
disagreements occur.
39. The value of teamwork
Teamwork – grouping workers together to work cooperatively to achieve
the same goal.
Teamwork is essential for success.
Teamwork is about selecting people who can work well together.
40. Advantages and Disadvantages
Groups are likely to come
up with more ideas than
individuals.
Members learn useful and
social and discussion skills.
Shared responsibility for
work and decisions.
Less experienced workers
benefit from experienced
staff.
Communication within the
business is improved
This is a form of job
enrichment.
Disagreement and lengthy
discussion may be time
consuming.
One or two members may
dominate team discussions
Some member may not do
their share of the work
Personality clashes may
exist.
Conflict may arise between
groups which is damaging
to the business.
41. Communication
Communication is described as the sharing of information and
understanding between or among agents.
Effective Communication – the exchange of information between people
or groups, with feedback.
44. Solutions to Communication
failure
The use of appropriate channels.
Feedback such as suggestion boxes.
Formal and informal meetings.
Notices and bulletins to inform employees.
