1. Tuesday 11th March 2014 Mr Nicholls
Year 11 Business
Tuesday 11th March 2014
Mr Nicholls

2. Objectives
To consider the different sorts of organisational structure that we might find in the world of business.
To identify how structure could link to the idea of motivation within a business.

3. Firstly… This week – Saturday – G28 – Business Booster!
As stated last week there are 3 of these sessions lined up to get us going –
- 15th March
- 26th April
- 3rd May
Please note – if you wish to attend you need to let me know and complete the slip attached to the letter – if none come back and if I don’t hear anything, I won’t be here!

4. Coursework… Next week – FINAL push.
We’re going to dedicate our week next week to Coursework – making sure it’s all done, dusted and ready to go.
Anything not completed during lesson time next week will need to be completed in after school sessions.

5. Today – 2 parts…
1). Organisational Structure – we’re going to revisit certain points just to make sure we’re 100% sure on everything.
2). Linking structure to motivation – is there a link?
We’ll then revisit the career plans to continue tying that work into motivation.

6. Structure
When hiring large numbers of staff – organisation is important.
Organisational structure helps everyone in the company to understand their role.
One method of doing this is to set up departments – so for example:
Finance
Human Resources
Marketing
Operations

7. Organisational Charts
To help make this clear, a business might use an organisational chart such as this one.
This makes it clear who is in charge of who, and what peoples roles within the business are.

8. Key Terms…
In relation to organisational structure there are certain key terms you MUST be aware of:
Hierarchy
Line Managers
Subordinates
Authority
Delegation
Empowerment
Span Of Control
Chain of Command
Lines of Communication

9. What do they mean? Hierarchy: Line Managers: Subordinates: Authority:
The management levels within an organisation.
Line Managers:
Responsible for overseeing the work of other staff.
Subordinates:
Report to other staff higher up the hierarchy. Subordinates are accountable to their line manager for their actions.
Authority:
Refers to the power that managers have to direct subordinates and make decisions.
Delegation:
Where managers entrust tasks or decisions to subordinates.

10. What do they mean? Empowerment: Span of Control: Chain of Command:
This is where managers pass authority to make decisions down to subordinates. Empowerment can be an incredible motivational tool.
Span of Control:
This is the number of subordinates that report directly to a manager.
Chain of Command:
This is the path of authority along which instructions are passed from the CEO downwards.
Lines of Communication:
These are the routes that messages travel along when passed down.

11. Types of Organisation
There are two key types of organisation that we need to be aware of:
Tall Organisations
Flat Organisations
There are key differences that we need to make sure we’re aware of in relation to each of them.

12. Tall Organisations These have many levels of hierarchy.
The span of control is narrow.
Many opportunities for promotion.
Lines of communication are long.
Unresponsive to change.

13. Flat Organisations Few levels of hierarchy.
Lines of communication are short.
Responsive to change.
Wide span of control.
Lots of delegation.
Potential for managers to feel over stretched.

14. Centralised/Decentralised
In centralised organisations – the majority of decisions are taken by senior managers and then passed down the organisational hierarchy.
In decentralised organisations, authority is delegated down the chain of command thus reducing the speed of decision making.
In order to reduce costs, a business might remove a layer of management in a hierarchy but will expect staff to produce the same level of output – we call this delayering.

15. Motivation…
How might structure link to motivation within a business? Is there a particular structure that might be more or less motivating to staff? Why?