Learning Outcomes  To explain what is meant by an organisation structure  To explain different ways businesses can be structured

How are they structured?  govchart/  gcht.htm   s/UNICEF_high- level_structure_2010.pdf

 Key term: organisational chart – a diagram showing job titles, lines of communication and responsibility with a business  shows where responsibility and authority for decision making lies  The job titles/roles of positions in the business  Lines of authority – who each employee is accountable to and who they are responsible for  The lines of communication through the business Organisational Charts

 Levels of hierarchy – number of layers of management and supervision  Chain of command – the lines of authority within the business  Lines of communication – how information is passed up down or across an organisation  Span of Control – number of subordinates one job/post holder is responsible for  Workload – how much work one employee, dept or team have to complete in a give period of time Key elements of an organisational structure

 Hierarchical structures (tall or flat) Allow specialist functional roles to develop Can see promotional opportunities Work load for managers determined by span of control Sometimes can have slow communication (many layers) Types of organisation structure

Purpose of organisation structures  To divide up the work to be done  Establish lines of control How is SIS broken down? Makes it clear who does what in the organisation Line of control – who is responsible for who Look at how communication takes place

Task  Create organisation chart for South Island School – ensure you show clear lines of communication and control

 Matrix structure Based around tasks or projects and involve creation of teams Employees use their individual talents and job roles likely to be more varied Workload could be unevenly spread Types of organisation structure

 Entrepreneurial structure Found in competitive markets – quick decision making is needed Core team of decision makers supported by a number of general employees Can only work in small businesses Types of organisation structure

 Informal structure No obvious need for formal structure Everyone works as part of a team If decisions need to be made you arrange a staff meeting Types of organisation structure

 Can also structure organisations by: Function (marketing, finance etc) Geographical area Product groups Type of customer (e.g. banking – business accounts, personal accounts etc)

 Draw the organisation chart based on the information given to you  Then have a go at answering the questions Organisation Chart Activity

1.Why are the span of controls different? 2.Which has the greatest? 3.Why do you think this is?

Activity  Complete the handout