Internal environment of large-scale organisations
Understand the role of management in ensuring that the internal environment of an organisation enables it to meet its objectives This includes creating and maintaining a positive corporate culture and managing the organisation ethically and with social responsibility Learning Objectives
Internal environment includes the factors inside an organisation that has a direct impact on its performance such as organisational structure, policies, corporate culture, the role of management and the performance of all staff. (page 45) Organisational (or management) structure refers to the way an organisation formally arranges its staff and resources so that it can achieve its objectives. Most organisations will display their management structure in an organisational chart. (page 46) Key Terms
Organisational chart shows the key positions of responsibility and accountability, and how information is communicated within the organisation Key Terms
The Pyramid on page 46 shows a traditional management hierarchy It consists of different management levels, and shows the job titles/positions and responsibilities associated with each management level Hierarchical management structure
There is greater authority, responsibility and accountability at the higher levels of the structure So senior managers have the most power and responsibility and lower level managers have less There are many levels of management Communication flows from top to bottom, with little flexibility Positions, roles and responsibilities are clear and identifiable Features of traditional management structures
Chain of command or line authority shows who is directly responsible to whom. Under the principle of unity of command, each employee takes orders from one supervisor only Advantage: only one person is ultimately in charge – this makes it clear and reduces confusion Span of control the number of employees a manager is directly responsible for Key features of a management hierarchy