1. Standard Grade Administration
Area 1 Unit 1a
Organisation of Departments

2. What is an organisation?
An organisation can be described as a group of people who are working towards a common aim/goal.

3. TYPES OF ORGANISATION
Profit-making - to make a profit eg Next, Sports Division, Virgin Records, Boots etc
Not-for-profit - to provide a service eg sports centre, charity organisations, golf clubs etc
Government - to provide a public service eg education, hospitals, police, army

4. The structure of an organisation is often shown in the form of a chart.

5. What is an organisation chart?
An organisation chart is the management structure of an organisation shown as a diagram.

6. What does an organisation chart show?
Main departments
Management structure
Job titles of main posts
Relationships between posts
Reporting structure
Span of control
and…

7. Chain of Command
The way in which information or instructions are passed down from one level to another within an organisation.

8. Authority
Who an employee is responsible FOR. The power that an employee has to instruct others and take decisions

9. Accountability
Who an employee is responsible TO. The obligation/duty an employee has to justify or explain their actions or decisions to their line manager.

10. The obligation that an employee has to carry out a range of duties.
Responsibility
The obligation that an employee has to carry out a range of duties.
Now do Task 1S in your jotters.

11. Span of Control
The number of staff reporting to a manager - if too many staff the manager must delegate or seek assistance

12. Superiors
Someone in charge of others and has responsibility for others in an organisation.

13. Subordinates
Someone who is responsible to another member of staff who would be shown above them on an organisation chart.

14. Benefits of an Organisation Chart to visitors or customers
Gives
an overall impression of the size of the firm
an overall impression of the type of work that the organisation does
you an idea who to contact in the organisation

15. Benefits of an organisation chart to employees
Can immediately see the:
overall size and structure
range of activities undertaken by each department
reporting structures and lines of communication
number of people who are accountable to each senior manager
relationships which exist

16. Disadvantages of preparing an organisation chart
It can become dated very quickly.
It does not show the informal relationships in the firm.

17. Line relationships
These exist between line managers and the staff immediately below them.

18. Lateral relationship
These exist between people with the same level of responsibility - who report to the same line manager.

19. Hierarchical Structure
Pyramid Shape
Chief Executive
Posts with the same status are grouped together and shown on the same level.
Posts with more authority are shown above those with less authority.
Directors
Senior Managers
Managers
Junior Managers
Supervisors
Assistants

20. Tall Structure – one with many levels of management
Advantages
Easier to supervise staff
Better chance of promotion
Employees have more contact with their boss
Employees more likely to know their duties and responsibilities.

21. Tall Structure Disadvantages
Employees can feel isolated and undervalued
Employees may feel far removed from decision making
Complicated channels of communication.
Decision making may be slow.

22. Flat Structure - an organisation with few levels of management
Advantages
Better communication
Higher motivation levels - as jobs are more varied.
Employees have more authority
Employees involved in decision-making

23. Flat Structure Disadvantages Fewer opportunities for promotion
Harder to supervise
Employees may have heavier workloads – suffer from stress.

24. Wide Span of Control
A manager with a wide span of control will have many staff reporting directly to him/her
Managers with wide spans of control have to be able to delegate work.

25. Narrow Span of Control
A manager with a narrow span of control will have few staff reporting directly to him/her.
Where the span of control is narrow it is easier for the manager to supervise and keep control of the work of his/her staff.

26. Why do organisations use teams?
Gather expertise
Everyone is committed to the same thing
team planning and discussion of tactics

27. Organisations restructure for the following reasons:
Restructuring
Organisations restructure for the following reasons:
Losing Money
Wasting resources
Duplication
Expansion

28. Growth Increase amount/range of products sold.
More staff employed to meet increased sales.
May have to increase the size of premises.
May result in new departments.
May result in new specialist posts.
May lead to more levels of management.

29. Downsizing
Reduction in number of staff employed without aiming to reduce output.
Some members of staff likely to be made redundant.
Reduces staffing costs.
Some posts likely to disappear.
Some workers will have increased responsibilities.

30. Delayering Removes certain levels or layers of management posts.
Should lead to management cost savings.
Results in flatter structure/wider spans of control.
Some workers will have increased responsibilities.

31. Outsourcing
Buying in services – eg software design, security, office cleaning – from another firm on a contract basis instead of getting its own staff to carry out the work.
Benefit of subcontracting specialists.
Organisation focuses on its core activities
May result from downsizing
Should result in simpler organisation chart with fewer departments/specialist members of staff.

32. Levels of Responsibility
This shows each employee’s position within the organisation eg all departmental managers will have the same level of responsibility, although their jobs will be different.

33. Lines of Communication
Organisations must communicate information efficiently ie information must not be lost or misunderstood.
Information must flow up and down throughout the organisation.
If there are many levels within an organisation there is more chance of communications breaking down as information is handled by more people.