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2.-Organisation-and-Management (BST, IGCSE)

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0% found this document useful (0 votes)
322 views12 pages

2.-Organisation-and-Management (BST, IGCSE)

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© © All Rights Reserved
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Organisation and

Management
IGCSE Business Studies
Definition of Organisation Structure

Organisation structure refers to how


responsibility and authority is shared in a
business organisation.
This is often displayed in the form of an
Organisati organisational chart. The 2 common type of
charts are
on • Tall organisational charts – These have a long chain of
command and a small span of control
Structure • Flat organisational charts – Short chain of command, wide
span of control
Advantages of an organisational chart
• Shows how everybody is linked together in a business
• Lines of communication are clear
• Motivational as employees can see where they belong and can
plan their career paths
•Chain of Command – is how the power and
authority is passed down from the top of the
organisation (managers) to lower employees
•Span of Control – The number of employees
working directly under a manager.
Produc •Levels of Hierarchy – Number of layers in an
organisation structure
er to
consu
mer
Advantages of short chain of
command
● Faster communication –
Communication is quicker and more
accurate since it is passed on by fewer
people.

Chain of ● Stronger relationship between


Command high-level managers and
employees – This is because there
are fewer levels between managers
and employees.

● Each manager is responsible for


more employees – This encourages
them to delegate (pass down) more
work to employees.
Delayering
Delayering involves
removing one or more levels
of hierarchy from the
organisational structure.
Frequently, the layers
removed are those containing
middle managers.

For example, many high-


street banks no longer have a
manager in each of their
branches, preferring to
appoint a manager to
oversee a number of
branches.
Video Presentation
The Roles of Management
1. Planning Set goals for the future of the organisation and
Give the business a sense of direction and
purpose (e.g. we will aim to increase sales by 10% by
next year.)
2. OrganisingOrganising of people and resources so that the
business operates efficiently (Managers can’t do
everything, they must delegate tasks to other employees)

3. Coordinating
Making sure all departments are working together
to achieve the overall objectives and plans of the
organisation. (e.g. Manager makes sure marketing and
operations department work together to plan for a new
4. Commanding product launch)

Guiding, leading and supervising of employees in


the organisation. (Managers need to make sure that
5. Controlling employees are doing their work!)

This involves monitoring performance to ensure


that objectives will be met.
Delegation – Passing down
authority and responsibility to a
subordinate (employee)

Delegati Advantages of delegation


on
• More time for manager to do other tasks
• More interesting and rewarding work for
employee (motivational)
• Employee feels trusted (motivational)
• Trains employee to do important tasks.
Leadership Styles
●Makes decision alone
Autocratic – Leader is in
●Everything depends on the leader
charge and gives orders to ●May de-motivate employees
employees ●May be an advantage for some businesses
where decision needs to be made quickly
●Communication between managers and
employees
●Future plans are discusssed
Democratic – Other with other employees
employees involved in decision ●Motivates employees because they are
making involved in making decisions.
●Sharing of ideas within the business.
●Can delay decision making.
Laissez-Faire – “let it be” ●Can be useful when creative ideas are
Leader sets objectives and needed
employees makes decision and ●Highly motivational for employees as they
organise their own work. control their own working life
Video Presentation
Trade union
– Group of
workers who
have joined
together to
ensure their
interest are
protected.

Why join a Improved conditions of employment


trade
Trade union? Improved work environment
Improved benefits

Unions Improved job satisfaction


Advice/financial support
Strength in number (many employees will join)
Disadvanta Cost money to be a member
ges

May be forced to take action e.g. strike even if you don’t


agree
Trade Union Video
Presentation

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