1. 3.4.1 Organisation structure
I have two grandparents, who had two children, who both got married and had 2 more children each - 10 people in all (Alan, Ben, Callum, Diane, Eddie, Freddie, George, Hannah, Isobel and Julie). 1. One of Callum's ancestors was Ben. 2. Eddie's sister gave birth to Julie. 3. Isobel went bowling with her nephew last Saturday. 4. Alan is cousins with one of the girls. 5. Freddie married Isobel. 6. Diane is not an ancestor, nor cousin of Julie. 7. George's brother showed Freddie's son his football cards.
Can you draw a family tree for me?
B and H gave birth to E and I. E married D; I married F. D and E’s children were A and G; F and I’s children were C and J.
3.4.1 Organisation structure
Organisation structure

2. Internal organisational structure
Organisation structure
Internal organisational structure
Organisational Structure
Provides answers to the following questions:
Who does each worker report to?
Who is each manager responsible for?
How many levels are there?
How many departments are there?
How does communication flow?
Organisational Trees
A visual representation of the organisational structure
Levels of hierarchy
The number of levels in the organisational structure
The layers of management
The Professor on organisation structure
Prof on organisational structure

3. Organisational Trees – functional structure
Organisation structure
Organisational Trees – functional structure
Director
Marketing Manager
Sales Supervisor
3 assistants
Promotions Manager
6 assistants
Overseas Sales
5 assistants
Finance Manager
HR Manager
Operations Manager
At the top of the hierarchy
The Overseas Sales Manager has a span of control of 5
The widest span of control = 6
There are 4 levels of management

4. Organisational Trees – divisional structure
Organisation structure
Organisational Trees – divisional structure
Director
Product A
Sales Supervisor
3 assistants
Promotions Manager
6 assistants
Overseas Sales
5 assistants
Product B
Product C
Product D
At the top of the hierarchy
The widest span of control = 6
The Overseas Sales Manager has a span of control of 5
There are 4 levels of management

5. Divisional organisational structure
A divisional organisational structure groups its operations by products, markets or customers. This can be compared to functional structures that look after all products or customers through marketing, finance, people and operations management
Each division will have the independence to run its own operations
This allows the business to specialise
As a result there is a more flexible service provided to customers
Organisation structure

6. Span of Control/ chain of command
Organisation structure
Span of Control/ chain of command
A span of control is the number of people a manager is directly responsible for. People beneath the manager are known as subordinates:
Who is the head teacher at your school?
Who are the deputy heads/assistant principals?
How many teachers are there?
How many support staff are there?
How many students are there?
What is the head teacher’s span of control?
The chain of command shows how authority is passed down the hierarchy from top to bottom

7. Organisational Structure
Has _____ levels of hierarchy
Has a ______ span of control
Has a _____ communication flow
A _ _ _ _ organisational structure
A _ _ _ _ organisational structure
Has _____ levels of hierarchy
Has a ______ span of control
Has a _____ communication flow
Use the words given below to fill in the blanks
Flat
Many
Short
Long
Few
Narrow
Tall
Wide

8. Maslow and communication
The structure of the organisation will affect many aspects of how the workers are managed and treated. This will impact on communication and the motivation of the workforce according to Maslow:
Degree of responsibility
Level of supervision
Training required
Motivation
Flow of communication
Speed and accuracy
Opportunities for promotion
Would you prefer to work in a business with a tall or flat organisational structure? Justify your answer.
Organisation structure

9. 3.4.1. Organisation structure
Whole Class Activity
How many departments or faculties are there in your school?
Divide the class into teams and allocate each team
A department e.g. Maths
One team should have the senior management team i.e. the head and deputies etc
On A3 paper each team draws an organisational chart for their allocated department
On a wall or board fit all parts of the organisational chart together
Who has the widest span of control?
Does anyone appear in the structure in more than one place?
What does this mean for them? For their manager(s)?
How would the structure change if you drew the tree by tutor responsibilities rather than subjects?

10. Centralisation and Decentralisation
Organisation structure
Centralisation and Decentralisation
Where the decisions are made
Centralisation
Decisions are made in one place such as head office
Decentralisation
Decision making is spread across the organisation such as different branches, departments or geographical locations
How much control do the managers at the top of the structure want to maintain?
Can decision making be passed to workers lower down the structure?

11. Centralisation and Decentralisation
Organisation structure
Centralisation and Decentralisation
Add a sentence of your own to explain how centralised or decentralised decision making can impact on each of the following:
Management control
Employee motivation
Speed of decision making
Flow of ideas
Quality of decisions

12. Question time
Max has been appointed as a new branch manager at Million Banks Ltd. He previously worked for one of the bank’s competitors' Southern Sands Ltd where he was responsible for a team of 5 employees and for the hiring and firing of all his own staff. Million Banks Ltd is a much larger organisation and now Max has a span of control of 10 but is concerned that he no longer has responsibility for recruitment as this is all done by the HR department at Head Quarters.
Question time
What is meant by ‘span of control’? (2 marks)
Explain two drawbacks to Max of having a larger span of control in his new position at Million Banks Ltd. (5 marks)
Explain two benefits to Million Banks Ltd of having a policy of centralised recruitment. (5 marks)

13. End 5 Minute Test What is an organisation chart?
Organisation structure
5 Minute Test
What is an organisation chart?
What is meant by the term span of control?
Does a flat structure have a wide or narrow span of control?
State one possible danger of a manager’s span of control being too large
Distinguish between centralisation and decentralisation
End