Organisation of Departments

Why Are There Organisations? In order for a business to survive and grow it must Be organised And have good communications

Organisation Charts These are used to show the structure of a Business (see next slide)

Organisation Chart

Other Information On An Organisation Chart Employee Names Job Titles Room Numbers Groupings within the organisation Photographs Telephone Numbers

Who Uses An Organisation Chart Visitors to the organisation New members of staff Receptionist

Advantages And Disadvantages Of Using An Organisation Chart Useful for visitors to see the overall size of the business and where people fit in Information can soon be out of date ie people leave Useful for new employees to get an overall feel for the business Employees can see an overview of the business

What Information Does An Organisation Chart Show? Employees can see an overall picture of the organisation The position of employees within the organisation Lines of communication flowing up and down the organisation Lines of authority – managing director to departmental manager Lines of responsibility – sales director in charge of the the work of the sales manager

Levels Of Responsibility High Low

Lines Of Communication Board of Directors Organisations must communicate information efficiently Information must flow up and down the organisation The more levels the more chance of information breaking down Managing Director Sales Director Sales Manager

Lines Of Authority Personnel Director Personnel Manager These show who is allowed to give instructions and who will receive them In the example, the Personnel Manager reports to the Personnel Director. The Personnel Director gives instructions to the Personnel Manager Personnel Director Personnel Manager

Lines Of Responsibility Sales Director Sales Manager Marketing Manager These show people in the organisation who oversee the work of other members of staff In the example, the Sales Director is in charge of the work carried out by the Sales Manager and Marketing Manager

Types Of Organisational Structures Many levels of management Tall Organisation

Tall Organisation Features More levels of management There are many lines of communication Tends to be seen in longer-established organisations Examples University/College Hospital Large multi-national oil company School

Flat Organisation Few levels of management Flat Organisation

Flat Organisation Features Fewer levels of management There are fewer lines of communication Tends to be seen in more modern organisations Examples Charity Employment agency Nursing home Local shop

Line Relationships Line relationships in an organisation show those employees who are in charge of the work of other members of staff

Line Relationships This section of chart shows the following Chief Executive This section of chart shows the following line relationships Chief Executive – Finance Director Finance Director – Cost Accountant Cost Accountant – Senior Accounts Assistant Senior Accounts Assistant – Accounts Assistant Finance Director Cost Accountant Senior Accounts Assistant Line Relationship Accounts Assistant

How Do Lateral Relationships Work? Lateral relationships exist in organisations where members of staff are directly responsible to the same immediate supervisor or manager

Lateral Relationships The Chief Executive is directly responsible for 3 members of staff The lateral relationship exists between the Finance Director, Marketing Director and Human Resources Director All have the same level of responsibility Chief Executive Finance Director Marketing Director Human Resources Director Lateral Relationship

Organisation Restructuring Organisations often change their structure to improve their efficiency Or due to business expansion or contraction This can involve relocating to different offices It could also involve staff redundancies

Restructuring Possible benefits To reduce costs To become more efficient To delegate tasks to other departments To contract-out key activities eg cleaning To improve communications within the organisation Possible problems Low staff morale Staff may not want the change Cost of restructuring – new departments Initial communication problems – who is in charge of who Customers may be unfamiliar with the new structure