Need to have some sting for last activity

1

• Need to have some sting for last activity
• Handouts
• Internet connection for lesson

2
More Organisational charts!
3
Homework owing.

• Draw an organisational chart using the following
  information
• The business has 4 levels of hierarchy.
• The MD has a span of control of 4.
• There are 4 functional managers Finance,
  Marketing, Operations and Human Resources.
• Each functional manager has 2 supervisors.
• Each pair of supervisors is jointly responsible
  for 10 staff.

• Using your Textbook page 143 146.
• State TWO uses of an organisational chart.
• Using diagrams, explain the difference between a
  Tall and a Flat organisational chart. Include the
  benefits and weaknesses in both models in your
  explanation.
• What are the differences between a Director and a
  Manager?

4
The Day Chocolate Company
A TALL organisation chart One manager per
function area who might be assisted by
supervisors who are in charge of workers
5
Lings Car

• LINGsCARS.com is an equal 50-50 partnership
  between my husband, Jon, and me.
• He is the rear end of the pantomime horse, doing
  everything that is non-customer facing.
• I am the face, interacting with customers.

A FLAT organisation chart Two managers who share
the supervision of all other staff!
6
Tall Chain Narrow Span!
Any problems with this structure?
Any benefits of this structure?
7
Tall Chain Narrow Span!

• Advantages
• Clear lines of formal authority
• Managers control fewer people.
• Promotional opportunities.

• Disadvantages
• Slow communication
• Slow decision making process
• More supervisors required

So What ?
8
Tall Chain Narrow Span!

• Advantages
• Clear lines of formal authority you know who to
  go to, to solve a problem.
• Managers control fewer people can spend more
  quality time with each.
• Promotional opportunities encourages staff to
  improve..

• Disadvantages
• Slow communication once a decision has been
  made the time it takes to go from top to bottom
  layer!
• Slow decision making process may have a lot of
  managers to discuss options with.
• More supervisors required costs money!

So What analysis
9
Flat Short Chain and Wide Span.
Any benefits of this structure?
Any problems with this structure?
10
Flat.Short Chain and Wide Span.

• Advantages
• Fast communications
• Workers have a wider job role.
• Low number of managers / supervisors needed.
• Less supervision of staff.

• Disadvantages
• Blurred lines of authority
• Manager has less time for staff under their
  control.
• Lack of promotional opportunities.

So What ?
11
Flat.Short Chain and Wide Span.

• Advantages
• Fast communications decisions passed on to all
  quicker reaction!
• Workers have a wider job role develop and use
  more skills
• Low number of managers / supervisors needed
  reduces costs
• Less supervision of staff more independent
  staff feel trusted/motivation.

• Disadvantages
• Blurred lines of authority unsure of who is
  responsible for different areas of the business.
• Manager has less time for staff under their
  control quality control becomes an issue do
  the managers know what their staff are doing?
• Lack of promotional opportunities staff will
  look elsewhere for promotion.

So What analysis
12
Delegation
Flat organisational businesses will use
delegation.
You will need access to the internet to watch
this clip
Clip via laptop

• What is it?

13
Delegation

• Delegation involves the passing of authority down
  the hierarchy.
• Authority occurs when an employee is given the
  right to do something by their superiors.
• This will
• - Free up time for management
• - Motivate workers by providing them with
  greater responsibilities

14
Communication flow

• Communication is the exchange of information
  between individuals or groups
• Communication can flow in different directions
  and in different ways both internally within a
  business and externally from sources outside of
  the business
• Feedback occurs when the person sending the
  original message receives a response

Communication problems in the hotel industry!
Clip via laptop
15
Communication flow

• Communication can come through a variety of
  communication channels
• Open channels are available to all staff members,
  closed channels are restricted to certain
  employees
• Formal communication occurs through official
  company channels, informal communication through
  unofficial channels

16
Communication flow

CHINESE WHISPERS Your teacher will provide the
person sitting at the front of the class with a
written saying. That person must whisper the
saying to the next person and so on until the
last person in the class. They must write down
what they think they heard and pass it on to the
teacher to read out. You are not allowed to ask
for a class member to repeat the saying.
Did the class face problems with
communications? What was the cause of this
problem? What was the result of the problem? How
could this problem be solved? Use your
understanding gained from this activity to
explain how communication problems can occur in
businesses. Remember to use business terminology.
17
Chinese whisper.. Message was

• Mrs Gordon has decided that the next 4 lessons
  will all be posted on the Fronter software
  through the school website. All you will have to
  do is log on at home using your password, or log
  in using you first name, surname and date of
  birth, go to the Business page and download for
  your own revision purposes!

18
How to improve an organisation's structure?

• What will it take?

19
How organisational structure affects business
performance

• Different organisational structures suit
  different businesses. Firms will have to take
  into account
• Finance delayering can remove a level within
  the hierarchy but increase the span of control.
• Communication how important is efficient
  communication within the organisation?
• Growth a larger business needs a more formal
  structure
• Ownership as the legal structure of the
  business changes so too will the organisational
  structure. A sole trader will have a different
  structure than a partnership
• Business culture an informal entrepreneurial
  culture will have a different structure than a
  formal organisation

Reasons for re-organisation at Business Link
20
Communication flows are the lines short and
efficient
Levels of hierarchy- how many are necessary?
Delegation can it be used to motivate
employees?
Organisational Structure
Spans of control are they broad or narrow?
Job allocation how many people are needed to
complete the tasks?
Workloads make sure that the work is spread
evenly
21
Delayering

• To reduce the size of a business hierarchy,
  especially in terms of a reduction in management.
  
• This creates a flatter (less layered)
  organisational structure.
• But what does this involve?

22
Homework
You have a whole week to do this.. Not due in
next lesson

• Textbook p 150 DO Analysis Evaluation Q 2
  Vals Bakery
• Examine the effect that delegation will have on
  the jobs of senior shop assistants (8)
• To what extent might delegation improve the
  performance of Vals Bakery? (15)

23
Plenary

• Hand out job title cards.
• Students to organise themselves into the correct
  hierarchy structure.
• Using a piece of string get the MD to
  co-ordinate the laying of the string to show
  HIS/HER span of control.
• Using the same piece of string get the MD to
  co-ordinate the laying of the string to show the
  levels of hierarchy (chain of command).

24
Tutor2U have more BS quizzes.

• GO to the BS Blog.. Organisation Structure
  tag.. Find the QUIZ.
• http//www.tutor2u.net/business/quiz/organisationa
  lstructure/quiz.html
• Try this quiz

25
Managing Director
26
Operations Manager
27
Head of Sales
28
Accounts Manager
29
HRM manager
30
Assistant to the MD
31
HRM Supervisor
32
Sales team leader
33
Marketing Team Leader
34
Finance Supervisor
35
Accountant
36
Shop floor worker
37
Sales staff
38
Market Researcher
39
Sales staff
40
Accountant