Presentation on theme: "What would be the features of your perfect job?. Theme 1: Marketing & People This theme enables students to understand how businesses identify opportunities."— Presentation transcript:
Theme 1: Marketing & People This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders. 1.4 Managing people Subject content 1.4.3 Organisational design What students need to learn: a) Structure: hierarchy chain of command span of control centralised and decentralised b) Types of structure: Tall flat matrix c) Impact of different organisational structures on business efficiency and motivation
Organisational design Organisational structure is the way in which the workforce within a firm is organised, including job roles and communication flows Organisational charts provide a visual representation of the organisational structure Managing Director Finance Manager Accounts Supervisor Sales Supervisor Production Manager Production supervisor
Hierarchy Hierarchy is the structure of the workforce within an organisation showing who is accountable to whom 1.Which one is going to result in quicker communication? 2.Which one means that supervision is going to be closer of subordinates?
Chain of command Chain of command is the way authority and power is passed down the levels of hierarchy
Span of control Why do you think there are so many ranks within the armed forces? The span of control shows the number of subordinates that a manager or supervisor is directly responsible for.
In pairs Using A3 paper produce an organisational chart for your school or college On your chart show the various departments, year groups and staff Try to work out: the height of the hierarchy – is it tall or flat? the span of control of the different members of staff are there any areas of contradiction? how efficient is this structure?
Authority Authority is the power of an employee to instruct subordinates, make decisions and control the use of resources Authority can act as a motivator
Centralised and decentralised Centralisation is when the responsibility for decision making is maintained, by a limited number of senior managers, at the top of the hierarchy Few decision makers Decisions are made by those at the top of the hierarchy Speeds up decision making Maintains tight control Bureaucratic
Centralised and decentralised Decentralisation is when the responsibility for decision making is delegated to a number of middle managers throughout the hierarchy Delegates decision making Decisions made at many levels within the hierarchy Frees up management time Provides motivation Reduces bureaucracy What could be the issues?
Influences on delegation, centralisation and decentralisation Attitudes and priorities of leaders and their preferred leadership styles Organisational design The skills and attitudes of the workforce The nature of the decisions to be made Legal form Business objectives Response to changes in technology Degree of confidence and stability in the economic environment In pairs discuss how each of these will influence centralisation and decentralisation.
Types of structure A tall structure Many levels of hierarchy Long chain of command Narrow span of control A flat structure Few levels of hierarchy Short chain of command Wide span of control AdvantagesDisadvantagesAdvantagesDisadvantages Work in pairs to complete the table below.
Types of structure A matrix structure is one where teams are put together from different functional areas to work on specific projects Advantages Communication across functional areas Range of view points considered Functions support and understand each other Motivational Disadvantages Potential loss of control Dependent upon effective delegation Teams may take time to work together effectively Can cause conflict
Impact on efficiency and motivation Speed of decision making Flow of communication Degree of supervision Opportunities for promotion Cross functional relationships Clarity of roles Employee motivation Discuss how each of these points will be affected by the type of structure.