Organisational Structures (P2/M1/D1) BTEC Firsts Level 2 Award in Business Miss Vincent

Learning Objectives By the end of the lesson, you should be able to… LO1) Draw and label a flat and tall organisation chart (guided) LO2) Explain what is meant by the terms Span of Control, Chain of Command and Delayering (regular-strong) LO3) Compare different organisational structures including tall, flat, matrix, functional and divisional (advanced).

Competency Focus Self-reliance (C5): by completing this unit, pupils will learn how to independently seek and apply for a job that they want and attend an interview for that job. Coping with change (S2): pupils will look at how their life will change when they leave school and investigate the feelings and emotions that they may encounter during this life changing experience.

I understand the different jobs that exist in different organisations and which jobs are more senior that I may apply for when I leave school: Competence level Descriptor Autonomous I can delve deeper into what jobs exist in organisations, the role that they perform and how valuable each role is to the organisation and make a reasoned judgement as to why I think a particular role is more important than others. I will begin to conduct my own independent research on the salary, qualifications and responsibilities of each role. I will then apply these to the four different organisational structures and explain how each one applies to different organisations and why. Advanced I can identify at least 6 different jobs that exist in one named organisation and the role each job has and evaluate how valuable each job is to the organisation. I can draw and explain 3 different organisational structures and explain each one. Strong I can identify at least 5 different jobs that exist in one named organisation and the role each job has. I can also draw one hierarchy and explain who is more senior in the organisation. Regular I can identify at least 5 different jobs that exist in an organisation and which roles are more senior than others. Guided I can recognise at least 3 different jobs that exist in one named organisation and which roles are more senior than others.

More authority/responsibility LO2: Flat Structure More authority/responsibility Chain of Command Span of Control

LO2: Flat Structure ADVANTAGES DISADVANTAGES Faster communication between management and workers (small chain of command). Larger span of control – Manager has more responsibility for more workers. Better team spirit. Jobs roles are not clear therefore may cause conflict. Faster decision making. Structure limited to small organisations such as partnerships, co-operatives and some private limited companies.

LO2: Hierarchical Structure (Tall) Chain of Command More authority/responsibility Layer Span of Control

LO2: Hierarchical Structure (Tall) Chain of Command More authority/responsibility Delayering Layer Span of Control

LO2: Hierarchical Structure (Tall) Advantages of a tall structure: There is a narrow span of control i.e. each manager has a small number of employees under their control. This means that employees can be closely supervised. Clear progression, promotion route Clear lines of responsibility & control

LO2: Hierarchical Structure (Tall) Disadvantages of a tall structure: High management costs because managers are generally paid more than subordinates. Each layer will pay it’s managers more money than the layer below it. Longer communication as has to go through many layers of management. Slower decision-making as approval may be needed by each of the layers of authority.

LO3: Matrix Structure Project A Project B Project C Finance Manager HR Marketing Manager Production Manager Distribution Manager Project A Project B Project C

LO3: Matrix Structure Most used in IT companies, construction companies and marketing consultants. One-off projects. When a contract is won, a project team is assigned to work together on the project. The team is headed by a project manager and the team may consist of someone representing each different dept. When the project is finished, the team break up and go and work on another project with a different team.

LO4: Functional Areas Organisation is split into different functional areas. Functional areas of a typical business- Marketing & Sales HR Distribution Production Finance Functional areas may be different depending on the business. For example a hospital may be split up into maternity, ICU, Outpatients, A&E

LO4: Divisional Structure Different divisions based on location, types of customer or what they do/products they sell. For example: L’Oreal has 5 divisions by what they sell – Professional products, consumer products, luxury products, active cosmetics and body shop.

LO4: Divisional Structure Managing Director Professional Products Division Division Director Division Manager Finance Manager HR Manager Marketing Manager Consumer Products Division Luxury Products Division Active Cosmetics Division Body Shop Division

INDIVIDUAL TASK Imaginary business start-up start a business of your choice design a structure who will work for you and their job functions draw organisation structure and include key terms [30mins]

MULTIPLE-CHOICE The chain of command goes from... a) Top-down b) Bottom-up c) Left to right d) Right to left

MULTIPLE-CHOICE 2) Delayering is... a) Adding a layer to the structure b) Decreasing the span of control c) Removing a layer from the hierarchy d) Removing responsibility from a manager

MULTIPLE-CHOICE 3) In a flat structure, the span of control is... a) Smaller b) Longer c) Larger d) Shorter

MULTIPLE-CHOICE 4) An advantage of a flat structure is... a) Larger span of control b) Job roles are unclear c) Limited structure d) Faster communication

MULTIPLE-CHOICE 5) A layer can be described as... a) A level in the hierarchy b) One manager having control over workers c) The number of workers a manager is responsible for d) The communication channel

MULTIPLE-CHOICE 6) A tall structure has... a) A larger span of control b) Faster decision-making c) Clear lines of communication d) Lower management costs

MULTIPLE-CHOICE The chain of command goes from... a) Top-down b) Bottom-up c) Left to right d) Right to left a) Top-down

MULTIPLE-CHOICE 2) Delayering is... a) Adding a layer to the structure b) Decreasing the span of control c) Removing a layer from the hierarchy d) Removing responsibility from a manager

MULTIPLE-CHOICE 3) In a flat structure, the span of control is... a) Smaller b) Longer c) Larger d) Shorter

MULTIPLE-CHOICE 4) An advantage of a flat structure is... a) Larger span of control b) Job roles are unclear c) Limited structure d) Faster communication

MULTIPLE-CHOICE 5) A layer can be described as... a) A level in the hierarchy b) One manager having control over workers c) The number of workers a manager is responsible for d) The communication channel a) A level in the hierarchy

MULTIPLE-CHOICE 6) A tall structure has... a) A larger span of control b) Faster decision-making c) Clear lines of communication d) Lower management costs

I understand the different jobs that exist in different organisations and which jobs are more senior that I may apply for when I leave school: Competence level Descriptor Autonomous I can delve deeper into what jobs exist in organisations, the role that they perform and how valuable each role is to the organisation and make a reasoned judgement as to why I think a particular role is more important than others. I will begin to conduct my own independent research on the salary, qualifications and responsibilities of each role. I will then apply these to the four different organisational structures and explain how each one applies to different organisations and why. Advanced I can identify at least 6 different jobs that exist in one named organisation and the role each job has and evaluate how valuable each job is to the organisation. I can draw and explain 3 different organisational structures and explain each one. Strong I can identify at least 5 different jobs that exist in one named organisation and the role each job has. I can also draw one hierarchy and explain who is more senior in the organisation. Regular I can identify at least 5 different jobs that exist in an organisation and which roles are more senior than others. Guided I can recognise at least 3 different jobs that exist in one named organisation and which roles are more senior than others.

Learning Objectives By the end of the lesson, you should be able to… LO1) Draw and label a flat and tall organisation chart (guided) LO2) Explain what is meant by the terms Span of Control, Chain of Command and Delayering (regular-strong) LO3) Compare different organisational structures including tall, flat, matrix, functional and divisional (advanced).