Organization and Management

People in business
Teacher: Hanan Salman
High Level Academy

People in business/ Motivating workers
:Lesson 6 :Lesson 7 :Lesson 8 :Lesson 9
Motivating workers Organization and Recruitment, selection and Internal and external
management training of workers communication
Section 2: People in business / motivating workers
Introduction
Everyone in the business - even if it is just two partners - needs to know their roles and responsibilities and what the
roles and responsibilities are of others in the business. This will help the business to operate efficiently.
 We need some form of organizational structure.

Section 2: People in business / Organization and management
Objectives
Objectives:
All In this chapter you will learn about:
 simple organization charts

 the role of management
 leadership styles.
 trade unions.
Simple organizational charts
Organizational structure: the

The functional departments formal, internal, framework of a
business that shows how it is
managed and organized.
Functional departments: the

main activities of business:
finance, marketing, operations,
human resources and research
and development.
Simple hierarchical structure

The main features of simple hierarchical structure are:
 Hierarchy
 Chain of command
 Delegation
 Span of control

 Hierarchy : the number of levels in an organizational structure.
 This chart has 5 levels

 Production workers are at the lowest level of the
hierarchy.
 Chief executive is at the top level.
 Middle managers are needed to control
employees
 Hierarchy : the number of levels in an organizational structure.
 The tasks become simpler as you move down

the hierarchy so a wider span of control is
possible at the bottom than it is at the top.
 People who are on the same level in the

organizational structure have the same status.

 Chain of command: the route through which authority is passed down through an organization. of
levels in an organizational structure.
 Each person in the chain of command is directly

responsible to the person immediately above
them and directly responsible for the person(s)
directly below them.

 Chain of command: the route through which authority is passed down through an organization. of
levels in an organizational structure.
 Instruction are passed down the chain of

command.
 Information about performance are passed up

the chain of command.
Activity 7.1
Finance director & HR Director


Activity 7.2

 Delegation: Passing authority down through the organizational hierarchy t subordinate
 For example: marketing director delegates

authority for specific tasks to he two sales
managers.
 Sales manager delegates authority for the
performance of certain tasks to the sales staff.

 Delegation: Passing authority down through the organizational hierarchy t subordinate
 If mistakes are made, the manager who

delegated the task will have o take the blame.

Activity 7.3
True
True

 Span of control: the number of subordinates reporting to each supervisor/manager
 Each manager is in charge of a number of

employees or subordinates.
 e.g. CEO has a spam of control of 5


 Can be described as ‘wide’ or ‘narrow’
 e.g. the factory manager has a spam of control

of 2
 While the supervisor of team A has a span of
control of 11 production workers.

 There are a number of factors that affect the size of the span of control including:
 The difficulty of tasks.

 The experience and skills of workers.
 The size of the business
 Levels of hierarchy
 Management style.

Activity 7.4
Supervisor of factory manager B

Tall or flat
 Organizational structures may be tall or flat, depending on the number of levels in the hierarchy.
Tall or flat
• Tall organizations have many levels of hierarchy.

• Each level – except the bottom level – is a layer of
management.
• Span of control will be narrow
• The chain of command is long.
• Communication and decision making are often
slower. ( because they must pass through several
layers).
Tall or flat
• Flat organizations have few levels of

hierarchy.
• Span of control will be wide (fewer manager)
• The chain of command is short.
• Communication and decision making are much
quicker. ( because they must pass through less
layers).
Delayering
 Reducing the size of the hierarchy by removing one or more levels-most often middle management- to
reduce cost.
Delayering
 Reducing the size of the hierarchy by removing one or more levels-most often middle management- to
reduce cost.
Centralized and decentralized

• who makes the decisions?
• Do senior managers make all the decisions? (centralized)
• Or is some of this authority for decision-making delegated to lower level managers?
(decentralized)
Centralized: one where all the important Decentralized: one where the important
decision –making power is held at head decision –making powers are passed
office, or the center. down the organization to lower levels.
Centralized and decentralized

.Roles, responsibilities and inter-relationships
 Directors and Chief Executive Officer.
 Managers
 Supervisors and other workers.

 Managers
 Directors are the most senior level of management in any limited company. They may be employees of
the business and be responsible for a specific function.
 Some directors are elected by the shareholders at the Annual General Meeting (AGM).
 Managers
 Annual General Meeting (AGM): a meeting for
shareholders that limited companies must hold
once every year.

 Managers
 The responsibilities of directors include:
 setting strategy-the long-term plans for the business.
 making sure that the resources are available to achieve objectives.
 reviewing the performance of managers protecting the interests of shareholders and other
stakeholders.
 providing leadership to ensure the success of the business.

 Directors and Chief Executive Officer(CEO).
 Managers
 Chief Executive Officer(CEO).  The responsibilities of (CEO):
• the most senior manager • He has overall responsibility for the day-to-day
responsible for the overall management of the business and implementing the
performance and success of a decisions of the Board of Directors.
company
 Managers
 Managers : an individual who is in charge of a certain group of tasks, or a certain area or department of
a business, for example Factory Manager.
 The day-to-day running of a department is usually the responsibility of a manager.

 Managers
The main responsibilities of all departmental managers include:

 making sure that the decisions of the directors are carried out.
 delegating tasks to members of their department
 taking the decisions needed to achieve departmental targets
 motivating workers in the department so that they work hard to achieve the department's and the company's objectives.
 Solving day-to-day problems that may arise within the department.

 Managers
Main responsibilities for supervisors include:
• giving out tasks to the workers,

• making sure they carry out the tasks
• and checking the quality of the work.
Main responsibilities of workers include:
• Workers must work together and with their manager to: complete their tasks efficiently and at the
required quality standard set by managers work towards achieving individual, group or departmental
targets.
Activity 7.6

Activity 7.6
1. Person responsible for certain group of tasks or area of a business, e.g. manager of each restaurant is
responsible for making sure that all tasks for that restaurant are completed and workers have resources
needed to complete tasks
2. a. Number of levels in business. Four levels in Mohinder's business.

b. Number of subordinates who report directly to supervisor/manager. Chef in restaurant C has span of
control of six.
c. Route through which authority is passed down in organization. In Mohinder's business from Mohinder
to restaurant managers to chefs and finally to other employees.

Activity 7.6
3. Shows their position in organization, who they report to and who they are responsible for
4. Less important tasks delegated - gives Mohinder more time to concentrate on more important
decisions; restaurant managers can respond more quickly to factors that affect their restaurant motivates
workers improves business performance; helps to train workers and prepare them for promotion.

Activity 7.6
5. Answers should discuss advantages/disadvantages of centralization. Advantages: faster decision making:

Mohinder can make decisions for whole business; benefits of economies of scale; easier for Mohinder to
control business. Disadvantages: centralization might demotivate restaurant managers who are not able to make
decisions; communication slower; restaurant managers unable to respond quickly to local factors opportunities
missed. Answers should include decision whether advantages outweigh disadvantages or vice versa.
The role of management
In most organizations managers are responsible for:

• setting objectives
• motivating workers
• making sure workers have the resources they need to complete their tasks.
Managers need also to:

• understand the people who work for them.
• set a good example.
• treat subordinates fairly.
• delegate tasks communicate effectively.
Function of management
For definition go to p.98
Delegation
Delegation can benefit both the manager and subordinates.
 Managers have time to focus on more complex tasks of greater importance.
 It can motivate workers who are given the opportunity to take on responsibility and develop their skills.
 Delegation is a way of developing the skills of workers and increasing the flexibility of the workforce.
 The quality of the work is often improved because lower level workers have better skills than their managers for
completing certain tasks.


Activity 7.7
1. Giving authority to subordinates to perform certain tasks
2. Answers should identify and explain organizing and commanding as these are functions of
managers at local level. Other three functions of managers probably specific to senior management,
e.g. reference to planning function of country director.

Activity 7.7
3. Advantages: local managers can respond to factors that are local to their offices, used to motivate managers; used
to prepare managers for promotion; gives country director more time to concentrate on more important decisions.
Disadvantages: local managers might not have skills or experience to make good decisions; communication
problems; loss of control by senior managers; decisions taken might not support overall objectives of business.
Leadership style
There are three main leadership style

Leadership style
Features of the main leadership style
Leadership style
Choosing a leadership style
There is no one best leadership style that fits every business situation. Each of the styles discussed above have their
strengths and weaknesses and which one is the best will depends on a number of factors, including:
 The skills and experience of the workforce - the more skilled and experienced workers are, the less important it is
for the manager to make all decisions and supervise workers. A more democratic leadership style may be 'best.
 The time available to make a decision -if a decision needs to be taken quickly, then there will be no time to discuss
the situation with workers. This will require an autocratic approach to management
Leadership style
Choosing a leadership style
There is no one best leadership style that fits every business situation. Each of the styles discussed above have their
strengths and weaknesses and which one is the best will depends on a number of factors, including:
 The personality of the manager-some managers are naturally autocratic or naturally democratic. It can be very
difficult to use a management style which is opposite to their own personal style.
 The task to be completed -you have already seen how workers whose tasks require them to be innovative and
creative may be more motivated with a laissez- faire leadership style. The nature of the task, for example complex,
simple or creative, may require different leadership styles.
Leadership style
Case study p.102
a. Secondary and tertiary sectors
b. Someone who has responsibility

for a group of tasks or
area/department of a business.
implemented and communicated to
all employees.
Leadership style
Case study p.102
C. Because of the nature of the work
and the fact that an Installations
Manager is responsible for health and
safety issues, it could be argued that a
more autocratic style is the most
appropriate However, a democratic
leadership style might also be used if
there is a need to discuss with others
the health and safety issues and how
best these might be implemented and
communicated to all employees.
Trade unions
What is a trade union?
Trade union: an organization of workers aimed at improving pay and working conditions and
providing other services, such as legal advice, for members.
Trade unions help their members by carrying out the following roles:
 Negotiating with employers to improve pay and working conditions this is the main
role of trade unions. They will represent their members in talks with employers at national or
local level on issues such as pay, hours of work, holidays, health and safety in the workplace.
Negotiations between trade unions and employers are known as 'collective bargaining.
Trade unions
 Resolving conflict- when there is disagreement between an employer and its workers
which the workers themselves have been unable to resolve then the trade union will try to
negotiate a solution on behalf of its members.

Trade unions
 Providing legal support and advice - a trade union will provide its members with advice
about their legal rights as an employee. If a worker is treated unfairly by an employer, for
example dismissed without good reason, then their trade union will offer the services of
legal specialists so that they are able to take legal action against the employer.
Trade unions
 Providing services for members - many trade unions provide a range of benefits for
members including pension schemes, insurance schemes, holiday schemes and many other
benefits.
Trade unions
Benefits of being a trade union member
The main benefits of trade union membership for workers are:
 Workers who join together in a trade union have greater power when dealing with
employers than if they were to do so as individuals. Collective bargaining is the best
example of this 'strength in numbers. The trade union negotiates with employers on behalf
of all its members in a business or industry. The collective power of all the members of the
trade union, acting as one, achieves much better improvements in pay and conditions than if
they were to negotiate with their employers on an individual basis.

Trade unions
Benefits of being a trade union member
The main benefits of trade union membership for workers are:
 Trade unions provide support and legal advice to members who are being unfairly
treated by employers, or who have been injured at work. This legal advice would often be
too expensive for individual workers to afford themselves.

Trade unions Activity 7.9
1. Organization formed and financed by workers

to protect their interests and negotiate with
employers on their behalf for improvements in
pay and conditions of work
2. Union will negotiate with employer to try and

get pay increase for workers. Easier for trade
union to negotiate with employer than individual
workers.
3. Strike would mean workers do not go to work

and this would stop production of sugar and
could affect sales and profits of companies who
are MSPA members.
4. Physical environment of workplace and how

well it meets health and safety of worker, eg.
temperature, noise, cleanliness, washroom
facilities, rest areas, drinking water, canteen
facilities
5. Answers should consider how important dock
workers and work they do is to economy of
Argentina. According to article they are very
important and, because of this, likely that any strike
action could have damaging effect on economy.
Government will want to avoid this. However, will
also depend an cost of improving working conditions
and whether employers can afford these. Some idea
of strength of union because of type of worker they
represent and their importance to economy, but
balanced against cost of meeting union's demands
HW
Exam practice questions p. 105

Organization and Management

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People in business

Teacher: Hanan Salman

High Level Academy

:Lesson 6 :Lesson 7 :Lesson 8 :Lesson 9

 We need some form of organizational structure.

 simple organization charts

Simple organizational charts

Organizational structure: the

Functional departments: the

Simple organizational charts

Simple hierarchical structure

Simple organizational charts

The main features of simple hierarchical structure are:

Simple organizational charts

The main features of simple hierarchical structure are:

 This chart has 5 levels

Simple organizational charts

The main features of simple hierarchical structure are:

 Hierarchy : the number of levels in an organizational structure.

 The tasks become simpler as you move down

 People who are on the same level in the

Simple organizational charts

The main features of simple hierarchical structure are:

levels in an organizational structure.

 Each person in the chain of command is directly

Simple organizational charts

The main features of simple hierarchical structure are:

levels in an organizational structure.

 Instruction are passed down the chain of

 Information about performance are passed up

Simple organizational charts

Finance director & HR Director

Simple organizational charts

Simple organizational charts

The main features of simple hierarchical structure are:

 For example: marketing director delegates

Simple organizational charts

The main features of simple hierarchical structure are:

 If mistakes are made, the manager who

Simple organizational charts

Simple organizational charts

The main features of simple hierarchical structure are:

 Each manager is in charge of a number of

 e.g. CEO has a spam of control of 5

Simple organizational charts

The main features of simple hierarchical structure are:

 Can be described as ‘wide’ or ‘narrow’

 e.g. the factory manager has a spam of control

Simple organizational charts

The main features of simple hierarchical structure are:

 The difficulty of tasks.

Simple organizational charts

The main features of simple hierarchical structure are:

Simple organizational charts

Supervisor of factory manager B

Simple organizational charts

Simple organizational charts

• Tall organizations have many levels of hierarchy.

Simple organizational charts

• Flat organizations have few levels of

Simple organizational charts

Simple organizational charts