Organisation and

Management
UNIT 2 CHAPTER 2
  A group of people who come
Organisation together with a particular
purpose
 E.g. A business, Government
department.
  Refers
to the levels of
management
Organisational  With division of responsibilities
Structure
 Within an organisation
 Itchanges as the business
expands.
  A diagramthat outlines the internal
management structure.
Organisational  A breakdown of the positions.
Chart  Advantages:
 Communication flow
 Shows who has the power
 Sense of belonging
 Designing of Org chart (Activity)
Hierarchy
 Levels of management.
 From highest to lowest.
 Shows where the authority lies.
  How many levels?
Level of Hierarchy
 Depends upon the type of
business and organisation
structure it follows
 Top level – responsible for
major planning and setting up
of corporate goals
 Layer of authority.
Chain of command

 Refers to the hierarchy of an organisation

 Lays out order of power
 In Decision-making
 And undertaking responsibility
 The person on TOP of the chain has the most
responsibility.
 Has the final say in decision-making.
 The level of power decreases with every step
down of the chain of command.
 Information flows from Top to Bottom.
Span of Control

 Number of subordinates directly working

under a manager.
 Types:
 Wide span on control
 No. of employees per manager is
high
 Narrow span of control.
 No. of employees per manager is low
 Link between Chain of command and Span of control

In recent days, the

modern
organisation
prefers shorter
chain of
Longer - Chain of command Shorter - Chain of command command and
Taller - Organisational structure Shorter - Organisational structure wider span of
control

Narrow - Span of control Wider - Span of control

  Removing layers of hierarchy
Delayering  Between the highest to lowest
 Removinga whole level of
management
 To boost efficiency
 Decreases wage bills.
 E.g. middle managers
Advantages of Short
chain of command  Communication is quick and accurate
 Lesser direct control of each worker and they
feel trusted
 However, this could also be a disadvantage
if they are poorly trained.
Usefulness of Organizational
Structure
An organizational structure is
helpful in many ways:
 Can determine specialist areas.
 Determines who is the supervisor; form of
accountability.
 Determines who has authority and their
responsibilities.
 Explains how all areas in the business are linked.
 Can verify your own position in the company.
 Identifies the channels of communication in an
organization.
  Planning
 Gives direction and purpose to the business
 Organising
The role and functions of  People and resources
management  (Here organisation chart helps)
 Coordinating
Managers / who manages the business –
titles can be whatever  Bringing-together
 Creating connections between departments
 Commanding
Those who manage the business has to do
the following  Guiding, leading and supervising
 Targets, deadlines, instructions
 Controlling
 Measure and evaluate
 Basically to keep a check on targets
 Along with discipling the staff
What happens when there
is no manager /  Employees lack sense of control and
management? direction
 Waste of effort and efficiency
 No coordination
 Low output and sales
 The business will drift and eventually fall.
Delegation
 Givingyour subordinate the
authority to perform a task.
 Authority is given only to
perform the task and not the
final responsibility.
 Advantages of
delegation  Afterdelegating , he can
concentrate on other
important managerial tasks
 Less mistakes
 Evaluation of performance is
easier

For the Manager

Advantages of
 The work is interesting and
delegation
rewarding
For the subordinate  Trust
 Trainingand more career
oppurtunities
 When will a manager
NOT delegate?

Good managers:  Failure of task

1. Motivate and guide the  Control
employees
 Subordinates doing a better job
2. Manage resources
effectively
3. Increase in profitability
 Leadership

 The act of leading a group of people or

organisation.
 Styles of leadership:
Leader:
1. Someone who inspires
 Autocratic Leadership
2. Get the best out of the workforce  Democratic Leadership
3. Getting them work towards a common  Laissez-faire Leadership
goal
 Why we have leadership styles?
 Different approaches of dealing with people
  Manager expects to be In-charge of the
business
Autocratic Leadership  Have other follow his orders
 Keeps information to himself and just give out
orders
 Communication here is only One-way
 Advangtage:
 Quick decision making
 Disadvantage:
 No opportunity for employee to input key-
decisions
 No motivation
  Involves other employees in decision
making process
Democratic Leadership
 Future plans are discussed openly
 Advantage:
 Better decisions , creativity, encourages
honesty
 Motivating factor and better relationship
 Disadvantages:
 No responsibility over failure of tasks
 Procrastination
 Gives a chance to question the capabilities of
the leader.
 Laissez-faire Leadership

 In French “Leave to do”

Advantages:  Own decisions
1. Creativity
 Organise their own work
2. Responsibility
Disadvantages:
 No clear direction
3. Not appropriate for certain  Leader has very limited role to play
organisation. Eg: Customer service
  A group of people who come together to
Trade Union ensure their interests are protected.
 Aspects/interests of employee:
 Improvised pay
 Pleasant environment
 Treated fairly
 Proper training
 Safe environment
 Workers pay annual subscription
 Benefits received in exchange for the
subscription
  Majority of vote
benefits of employees  Holidays, hours of work
being union members  Healthy and safe environment
 More benefits for retired, redundant and sick
employees
 More training and job satisfaction
 Advice / financial support towards unfair
treatment/dismissal/made redundant
 Group discounts for union members
 An extra hand with government officials
 Secure employment in closed shop
 Closed shop- employees must be members of the
same trade union.
Disadvantages of Trade
Union
 Costs money to become a member
Advantages to the employer:
 Required to take industrial action even f
Better communication between workers
1.
and management
they don’t agree.
2. Wage agreements are easier to negotiate
than with individual employees
Disadvantages to the employer:
3. Trade Unions can organise a strike if the
needs are not met
4. Wage will be slightly higher when the
employees are trade union members which
in turn adds up to the business cost