Chapter 4 - Internal Environment Management Structure 1. Senior or Executive Management High level responsibility, High level decision making 2. Middle Managers In charge of designated departments Store managers etc 3. Front Line Managers Responsible for day to day operations Supervisors / team leaders SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Division of Labour Refers to the segmentation and coordination of activities Traditionally Hierarchical structures - many levels of specialisation with workers becoming experts Changing to: Flatter structure – employees are becoming multi skilled, increasing motivation and productivity SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Organisational Departments or Divisions Divisions are key to organisational structure and can be broken into: - Function – operations, finance, human resources - Geographic – based on location of employees for example manufacturing in various locations - Product based – a sporting manufacturer may separate clothing & footwear, or AFL & NRL - Customer based – separate customers who require different services, Retail & Wholesale SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Chain of command Authority - the legal or moral right to control something or someone Span of control - is the term that refers to the number of people a manger has direct responsibility The larger the number of people the manager is responsible for the flatter the structure (horizontal structure) Narrow span of control will see a hierarchical structure in place SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Pattern of decision making Hierarchical structure Have a centralised decision making pattern Flatter structure Have a more decentralised decision making pattern Organisational Chart(page 67) SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Hierarchical Management (Organisational) Structure 2 Types of Structures 1 Bureaucratic Structure 2 Flatter structure SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Hierarchical Management (Organisational) Structure 1. Traditional Structure – Bureaucratic model (vertical) Features: (Page 68) - Employees arranged into layers Levels, powers responsibilities. - Rigid lines of communication downward pattern, orders, instruction - Clearly identifiable positions roles responsibilities and accountablility - Clearly defined command of control - Centralised Decision Making - The Principle of unity of Command Each employee is responsible to one manager SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Hierarchical Management (Organisational) Structure The Term Bureaucratic literally means to ‘Rule from the Desk’ SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Hierarchical Management (Organisational) Structure Flatter Structure Features: (Page 68) - More flexibility - Provides employee creativity - Responsive to change Effects of Flatter Structure: - Fewer level between staff - Employees actively involved in decision making - Better use of employee knowledge, skills experience - Greater flexibility - Reduction in management costs (fewer managers) - Increased training and multiskilling SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Forms of Hierarchical Organisation Structure Functional Structure Diagram (page 69) Geographical Structure Diagram (page 70) Product Based Structure Diagram (page 70) Customer Based Structure Diagram (page 71) SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Consequences of less hierarchical organisational structures Discuss Page 71 table 4.1 SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Other forms of Organisational Structures Matrix Structures - Best used when an organisation undertakes a project of assignment - Employees under this structure remain as part of their functional department but also have a responsibility to respond to the project team leader ADVANTAGES - improve communication channels - reduces interdepartmental rivalries - greater level of cross-pollination of ideas SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Other forms of Organisational Structures Network Structures this structure sees organisations outsource most of the work to other organisations creating its products in co- operation with others. The administrative control is done by the core business and ownerships of the product is also held by them. SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture YouTube: SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture is: - A pattern of basic assumptions shared within organisation - Developed and shared by a group - Represents things that have worked well in past - Taught to newcomers as the correct way of thinking, feeling & doing SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment To Recognise Corporate Culture look at: - Formally written company policy or objective - Physical environment - Organisational structure - Organisational Processes - Rituals, symbols or whats celebrated - How people address each other - The language used - Official company documentation SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment CORPORATE CULTURE ACTIVITY 4.3 SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture The Differences in Corporate Culture: - Degree to which people are encouraged to become risk takers and innovators - Attention to detail - People orientation - Task or Process orientation - Team orientation - Level of competitiveness - Degree of emphasis on ethical and Social Responsibility - Diversity among employees - Age of the organisation SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture ACTIVITY 4.4 SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture How does a new employee learn the culture? - Stories / narratives - Rituals - Mateial symbols - Behaviour management - Communication - Specialist language - Training - Written documentation - SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture - ACTIVITY SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture Pressure to change Corporate Culture The following are positive benefits of a positive Corporate Culture: - Increased productivity - Greater employee work ethic - Reduced staff absenteeism & turnover - Reduced cost of recruitment & Training - Greater profitability - Positive public perception SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Corporate Culture Ways to change corporate culture: 1 determine type of culture it should adapt 2 Establish what aspects of organisational culture need to go/stay 3 Plan the proposed change development 4 use leadership skills to bring about cultural change 5 set objectives and work to achieve them 6 monitor the level of acceptance and practice of the culture 7 Evaluate the outcome of the change and compare with the desired behaviours SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Policy Development and its application Policy is: a written statement detailing processes, procedures, rules and regulations that must be observed in a given situation. SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Policy that are based on an organisation’s mission and goals will: - - A conststant interpretation of the intentions of senior management - - Include procedures - - Offer guiding principles for action - - Reflect the mission and objectives - - Assist with compliance and acceptance of desired behaviours - - Recognise the rights and obligations of people within the organisation - - Identify means and procedures for resolution of conflict SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Effective Policies are: - Clearly expressed - Clearly communicated - Often introduced at employee training SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Pressure on policy development: External - Legal / Legislative - Social responsibility - Changing markets & other international pressures - Changes in Technology SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Pressure on policy development: ACTIVITY 4.7 ACTIVITY 4.9 SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Pressure on policy development: Operating Environment: - Lobby Groups - Trade Unions SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Pressure on policy development: Internal Environment - Owners / Shareholders - Management / Employees SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Policy Development Process 1 Issue Identification ‘This is wrong we need to fix it’ 2 Research and analysis ‘what exactly needs to change and what are the possibilities for the exact form of change’ 3 Stakeholder Input ‘What do those affected by a new policy think?’ 4 Policy development ‘Preparation of a proposed policy’ SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Policy Development Policy Development Process 5 Draft policy is posted ‘This is what is being proposed’ 6 Policy Approval ‘This is what the policy is going to be’ 7 Evaluation ‘Did the new policy help achieve organisational objectives?’ SCSC Year 12 Business Management. Weebly. com
Chapter 4 - Internal Environment Chapter Summary Questions Examination Preparation Questions Some text found on this presentation has come from: SCSC Year 12 Business Management. Weebly. com