iGCSE Business Studies 2.2.1 Organisation Charts

Learning Outcomes Draw, Interpret and understand simple organisational charts Understand the features of simple hierarchical structures: Span of control Hierarchy Chain of command Roles, Responsibilities and inter-relationships between people in organisations

Organisational Structure Refers to the ways that businesses organise their human resources (employees) As businesses grow there is a growing need for the structure to be formalised What is meant by a Hierarchy?

What is the best way to structure your business? Central Question What is the best way to structure your business?

Formal Versus Informal Structures

What do you think these terms mean….. Hierarchy Chain of command Span of control Delegation -Subordinate Line Manager

Other Employees (Operatives) Key Term: Hierarchy CEO/MD Board of Directors Management Supervisors Other Employees (Operatives) Senior management Pay and Authority Middle management Junior management

Key Term: Chain of Command Chain of command: The way authority and power are passed down in the business - Who is responsible to whom? *

Key Term: Span of Control Span of control: The number of subordinates directly reporting to a superior Short hierarchy Wide span of control Freedom for subordinates Lower cost Tall hierarchy Narrow span of control Tight supervision and control

Key Term: Organisation Chart Managing Director Purchasing Manager Production Manager Finance Manager Marketing Manager Personnel Manager Training Officer Industrial Relations Buyer Logistics Officer Warehouse manager Wages Clerk Cost Accountant Marketing Manager Sales Production Control Manager Quality Sales Representatives Identify the span of control of: the Managing Director the Purchasing Manager Would you describe this as a wide or a narrow hierarchy?

Task – Based on this Pastoral chart, can you draw a curriculum chart

Homework Task Describe the Organisation Structure of BSM. Make sure you use the words: Span of Control Chain of Command

Task – Sinbad Plc Using the information from the sheet draw an organisational chart for Sinbad Plc

Sinbad Plc task answers  = Span of control Managing Director Sales Representatives Public Relations Officer Manager Marketing Director Public Relations Staff    Training Team  Manager Human Resources Personnel Director Purchasing Director Drivers Senior Buyer Transport Officer Warehouse Manager Buyers Staff   Wages Clerk Cost Accountant Finance Director Accounts Staff   Shift Manager x3 Quality Manager Production Director Production Line Workers  

Key Term: Delegation Refers to passing authority & control on to others. Manager retains responsibility, but the subordinate does the work. What are the benefits of delegation?

Benefits of Delegation Makes work more interesting Increases Job satisfaction Prepares staff for promotion Gives managers more time for other issues Subordinate feels trusted

Why might a manager be reluctant to delegate?

Key Terms: Centralisation and decentralisation Centralisation: Retaining control within the top levels of the hierarchy – at head office Decentralisation: Delegating authority down the hierarchy Centralisation Retains tight control at the top of the organisation Employees are not able to show flair and initiative Decentralisation Motivates employees by giving them more freedom and responsibility Employees may not have the experience/training to carry out tasks effectively Would you rather work in an organisation that was centralised or decentralised?