3.4.1 Organisation structure I have two grandparents, who had two children, who both got married and had 2 more children each - 10 people in all (Alan, Ben, Callum, Diane, Eddie, Freddie, George, Hannah, Isobel and Julie). 1. One of Callum's ancestors was Ben. 2. Eddie's sister gave birth to Julie. 3. Isobel went bowling with her nephew last Saturday. 4. Alan is cousins with one of the girls. 5. Freddie married Isobel. 6. Diane is not an ancestor, nor cousin of Julie. 7. George's brother showed Freddie's son his football cards. Can you draw a family tree for me? B and H gave birth to E and I. E married D; I married F. D and E’s children were A and G; F and I’s children were C and J. 3.4.1 Organisation structure 3.4.1. Organisation structure

Internal organisational structure 3.4.1. Organisation structure Internal organisational structure Organisational Structure Provides answers to the following questions: Who does each worker report to? Who is each manager responsible for? How many levels are there? How many departments are there? How does communication flow? Organisational Trees A visual representation of the organisational structure Levels of hierarchy The number of levels in the organisational structure The layers of management The Professor on organisation structure http://www.youtube.com/watch?v=o4sKuvRboaY Prof on organisational structure

Organisational Trees – functional structure 3.4.1. Organisation structure Organisational Trees – functional structure Director Marketing Manager Sales Supervisor 3 assistants Promotions Manager 6 assistants Overseas Sales 5 assistants Finance Manager HR Manager Operations Manager At the top of the hierarchy The Overseas Sales Manager has a span of control of 5 The widest span of control = 6 There are 4 levels of management

Organisational Trees – divisional structure 3.4.1. Organisation structure Organisational Trees – divisional structure Director Product A Sales Supervisor 3 assistants Promotions Manager 6 assistants Overseas Sales 5 assistants Product B Product C Product D At the top of the hierarchy The widest span of control = 6 The Overseas Sales Manager has a span of control of 5 There are 4 levels of management

Divisional organisational structure A divisional organisational structure groups its operations by products, markets or customers. This can be compared to functional structures that look after all products or customers through marketing, finance, people and operations management Each division will have the independence to run its own operations This allows the business to specialise As a result there is a more flexible service provided to customers 3.4.1. Organisation structure

Span of Control/ chain of command 3.4.1. Organisation structure Span of Control/ chain of command A span of control is the number of people a manager is directly responsible for. People beneath the manager are known as subordinates: Who is the head teacher at your school? Who are the deputy heads/assistant principals? How many teachers are there? How many support staff are there? How many students are there? What is the head teacher’s span of control? The chain of command shows how authority is passed down the hierarchy from top to bottom

Organisational Structure Has _____ levels of hierarchy Has a ______ span of control Has a _____ communication flow A _ _ _ _ organisational structure A _ _ _ _ organisational structure Has _____ levels of hierarchy Has a ______ span of control Has a _____ communication flow Use the words given below to fill in the blanks Flat Many Short Long Few Narrow Tall Wide

Maslow and communication The structure of the organisation will affect many aspects of how the workers are managed and treated. This will impact on communication and the motivation of the workforce according to Maslow: Degree of responsibility Level of supervision Training required Motivation Flow of communication Speed and accuracy Opportunities for promotion Would you prefer to work in a business with a tall or flat organisational structure? Justify your answer. 3.4.1. Organisation structure

3.4.1. Organisation structure Whole Class Activity How many departments or faculties are there in your school? Divide the class into teams and allocate each team A department e.g. Maths One team should have the senior management team i.e. the head and deputies etc On A3 paper each team draws an organisational chart for their allocated department On a wall or board fit all parts of the organisational chart together Who has the widest span of control? Does anyone appear in the structure in more than one place? What does this mean for them? For their manager(s)? How would the structure change if you drew the tree by tutor responsibilities rather than subjects?

Centralisation and Decentralisation 3.4.1. Organisation structure Centralisation and Decentralisation Where the decisions are made Centralisation Decisions are made in one place such as head office Decentralisation Decision making is spread across the organisation such as different branches, departments or geographical locations How much control do the managers at the top of the structure want to maintain? Can decision making be passed to workers lower down the structure?

Centralisation and Decentralisation 3.4.1. Organisation structure Centralisation and Decentralisation Add a sentence of your own to explain how centralised or decentralised decision making can impact on each of the following: Management control Employee motivation Speed of decision making Flow of ideas Quality of decisions

Question time Max has been appointed as a new branch manager at Million Banks Ltd. He previously worked for one of the bank’s competitors' Southern Sands Ltd where he was responsible for a team of 5 employees and for the hiring and firing of all his own staff. Million Banks Ltd is a much larger organisation and now Max has a span of control of 10 but is concerned that he no longer has responsibility for recruitment as this is all done by the HR department at Head Quarters. Question time What is meant by ‘span of control’? (2 marks) Explain two drawbacks to Max of having a larger span of control in his new position at Million Banks Ltd. (5 marks) Explain two benefits to Million Banks Ltd of having a policy of centralised recruitment. (5 marks)

End 5 Minute Test What is an organisation chart? 3.4.1. Organisation structure 5 Minute Test What is an organisation chart? What is meant by the term span of control? Does a flat structure have a wide or narrow span of control? State one possible danger of a manager’s span of control being too large Distinguish between centralisation and decentralisation End