Introduction To Business Organisations

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Information about Introduction To Business Organisations
Education

Published on February 16, 2008

Author: Marcus9000

Source: slideshare.net

Introduction to Business Organisations Organisation of Departments

What does an Organisation Chart show? The management structure and main departments of an organisation The names and job titles of people within each department The relationship between posts The reporting structure Number of people accountable to each manager

The management structure and main departments of an organisation

The names and job titles of people within each department

The relationship between posts

The reporting structure

Number of people accountable to each manager

Organisation Chart

Key Terms Organisation Chart – management structure of an organisation shown as a diagram Accountability – the duty an employee has to explain his/her decisions Authority – the power an employee has to receive and give instructions Responsibility – the duty an employee has to carry out a range of tasks

Organisation Chart – management structure of an organisation shown as a diagram

Accountability – the duty an employee has to explain his/her decisions

Authority – the power an employee has to receive and give instructions

Responsibility – the duty an employee has to carry out a range of tasks

Benefits of Organisation Charts Customers/Visitors can: Gain a quick impression of organisation’s size Gain a quick impression of the work carried out Give idea of who to contact

Customers/Visitors can:

Gain a quick impression of organisation’s size

Gain a quick impression of the work carried out

Give idea of who to contact

Benefits of Organisation Charts Employees can: See the size and structure of organisation and departments View the reporting structures and lines of communication within organisation See number of people accountable to senior managers See the relationship between departments and managers within organisation Know the activities of departments

Employees can:

See the size and structure of organisation and departments

View the reporting structures and lines of communication within organisation

See number of people accountable to senior managers

See the relationship between departments and managers within organisation

Know the activities of departments

Levels of Management This is how we would normally see an organisation structure. This is an organisation chart of a business. There is another way we can view the same organisation.

Organisation Pyramid Chief Executive Board of Directors Senior Managers Managers Junior Managers Supervisors Assistants

Span of Control Span of Control means the number of people who report to a manager Narrow span of control Wide span of control Employees Employees Manager Manager

Span of Control means the number of people who report to a manager

Teamwork in Organisations Everyone has a common goal Everyone is committed to realising goal Team planning and tactics discussed Members pull together Members help each other Win or lose as a team Team greater than sum of their parts

Everyone has a common goal

Everyone is committed to realising goal

Team planning and tactics discussed

Members pull together

Members help each other

Win or lose as a team

Team greater than sum of their parts

Organisation Structures Organisations can have either a tall or flat structure Tall Flat

Organisations can have either a tall or flat structure

Tall Flat

Tall Structures Many levels of management Managers will have narrow span of control Management posts usually specialised

Many levels of management

Managers will have narrow span of control

Management posts usually specialised

Cost/Benefit Analysis of Tall Structures Benefits Easier for managers to supervise staff More promotion opportunities Employees will know immediate boss Clear lines of responsibility and communication Costs Many layers of communication Slow decision-making High labour costs due to many levels of management Workers may have little freedom or responsibility

Benefits

Easier for managers to supervise staff

More promotion opportunities

Employees will know immediate boss

Clear lines of responsibility and communication

Costs

Many layers of communication

Slow decision-making

High labour costs due to many levels of management

Workers may have little freedom or responsibility

Flat Structures Few levels of management Managers have wider spans of control

Few levels of management

Managers have wider spans of control

Cost/Benefit Analysis of Flat Structures Benefits Employees have more authority and responsibility Better communication between managers and workforce Decision-making is quicker Communication channels less complicated Better team spirit Costs Employees have greater workload Employees may need training for multi-tasks Fewer promotion opportunities If span of control is too wide people may feel isolated or ignored

Benefits

Employees have more authority and responsibility

Better communication between managers and workforce

Decision-making is quicker

Communication channels less complicated

Better team spirit

Costs

Employees have greater workload

Employees may need training for multi-tasks

Fewer promotion opportunities

If span of control is too wide people may feel isolated or ignored

Chain of Command Chain of command is the way instructions are passed down from one level of post to another within an organisation Think of the Armed Forces and how orders are passed down by rank from Generals to eventually the Privates.

Chain of command is the way instructions are passed down from one level of post to another within an organisation

Line and Lateral Relationships There are two types of relationships within an organisation: A Line Relationship exists between a manager and the employees immediately below them, illustrated by vertical lines in an organisation chart A Lateral Relationship exists between employees on the same level and report to the same line manager

There are two types of relationships within an organisation:

A Line Relationship exists between a manager and the employees immediately below them, illustrated by vertical lines in an organisation chart

A Lateral Relationship exists between employees on the same level and report to the same line manager

Key Terms Span of Control – number of employees who report to a superior Chain of Command – way instructions are passed down through an organisation Line Relationship – relationship between manager and staff directly below them Lateral Relationship – relationship between employees on same level of organisation

Span of Control – number of employees who report to a superior

Chain of Command – way instructions are passed down through an organisation

Line Relationship – relationship between manager and staff directly below them

Lateral Relationship – relationship between employees on same level of organisation

Organisation Change Growth Downsizing Delayering Outsourcing

Growth

Downsizing

Delayering

Outsourcing

Growth What happens? Sales of goods/services increases More staff employed to meet increased sales Organisation may need more floor space Effect on Org. Chart More staff at various levels New departments? New specialists? More levels of management?

What happens?

Sales of goods/services increases

More staff employed to meet increased sales

Organisation may need more floor space

Effect on Org. Chart

More staff at various levels

New departments?

New specialists?

More levels of management?

Downsizing What happens? Staff ‘laid-off’ Wages (labour costs) are reduced Effect on Org. Chart Greater workload for departments Some posts will disappear Workers have more duties

What happens?

Staff ‘laid-off’

Wages (labour costs) are reduced

Effect on Org. Chart

Greater workload for departments

Some posts will disappear

Workers have more duties

Delayering What happens? Levels of management are reduced (move from tall to flat structure) Wider spans of control Savings in management wages Effect on Org. Chart Flatter structure Fewer management posts Increased worker responsibilities

What happens?

Levels of management are reduced (move from tall to flat structure)

Wider spans of control

Savings in management wages

Effect on Org. Chart

Flatter structure

Fewer management posts

Increased worker responsibilities

Outsourcing What happens? Sub-contractors come in to do activities Sub-contractors bring their expertise Organisation can focus on core activities May result from downsizing Effect on Org. Chart Simpler organisation chart (fewer departments & fewer specialist members of staff)

What happens?

Sub-contractors come in to do activities

Sub-contractors bring their expertise

Organisation can focus on core activities

May result from downsizing

Effect on Org. Chart

Simpler organisation chart (fewer departments & fewer specialist members of staff)

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