1. Thought for the day:
‘Watchout for the fellow who talks about putting things in order! Putting things in order always means getting other people under your control.’ Denis Diderot (1713 – 1784)

2. Get an A Level 4 Evaluation Level 3 Application & Analysis Level 2
Grade
To what extent, Evaluate, discuss, justify, advise, recommend.
Level 4
Evaluation
Apply, Examine, Analyse, Interpret, Formulate.
Level 3
Application & Analysis
Compare, Contrast, distinguish, prepare, construct, calculate, explain, comment
Level 2
Understand
Define, Identify, Complete, Outline, describe, Classify
Level 1
Knowledge

3. 2.2 Pre-read Chapter ALL Accountability Level 1 De/Centralisation
Lesson 5: Revison- Using the Specimen question paper
2.2 Pre-read Chapter
Target
Learning Objective
Who?
Keywords 
To construct different types of organization chart and describe the nature of their structure, for example, flat, tall.
Explain how organizational structures affect employee motivation, communication and performance (HL).
Identify why firms need to organize employees in particular ways, for example, by function and geography.
ALL
Level 1
Accountability
De/Centralisation
Chain of command
Delayering
Delegation
Offshoring
Outsourcing
Organisational chart
Responsibility
Span of control
Analyse changes in organizational structures and their effects.
Discuss factors influencing the degree of centralization and decentralization (HL).
Discuss the development of more flexible organizational structures. Apply the theories of writers such as Mintzberg and Peters (HL).
Analyse methods of organizing human resources that are used by organizations.
Analyse the reasons and evaluate the benefits from outsourcing, offshoring human resource to external organisations located nationally or globally.
MOST
Level 2
Evaluate the role and importance of the informal organization (HL).
Evaluate whether firms will befit from outsourcing, off shoring and the migration of human resource functions.
SOME
Level 3
& 4 3

4. What is the difference between
Accountability
&
Responsibility? 4

5. School Organisation Chart
Organisation Charts
All business have an internal structure – the way human resources are organised. This is known as the formal organisation of the business. It takes into account:
The relationship between individuals
Who is in charge
Who has the authority to make decisions
Who carries out decisions
How information is communicated
School Organisation Chart

6. Organisation Charts
Organisational charts are used to illustrate the structure of the business.

7. Structure and Hierarchy
.. Are shown by an organisational chart
Traditional business have a series of levels, where each level has a responsibility and authority over level below them. This is called a hierarchy.
An organisational chart sets out who has authority to make decisions and the responsibility for making them.

8. Structure and Hierarchy
It shows who individuals are accountable to – who is directly above them in the hierarchy.
The chart also shows how the organisation is divided up. It can be divided by function (department), product or geographical area.

9. Organisation Charts Why have a chart?
Why do business draw such charts:
To spot communication problems.
Help individuals see their position in a business
Pinpoint areas where specialists are needed
Show how different sections of the firm relate together

10. Structures can be ‘tall’ or ‘flat’
Organisations that has lots of levels in their hierarchy are called ‘tall’. They have a large number of people between the ‘top’ and the ‘bottom’.
Tall structures have a long ‘chain of command’

11. Levels of Hierarchy Ranking system
What are the advantages and disadvantages of hierarchy structure?
Pg 109

12. Chain of command
The HIERARCHY in a business is the order or levels of management in a business from the lowest to the highest rank.
It shows the CHAIN OF COMMAND within the organisation – the way the authority is organised. Orders passed down the levels the information passed up.
The chain of command is the communication and authority up and down the hierarchy.

13. Structures can be ‘tall’ or ‘flat’
If the structure is too tall, it affect communication.
Messages take a long time to get from one end of the chain of command to the other, and they can get distorted along the way.
Decision take a long time to make.
And.. There is a lot of paper work.

14. Structures can be ‘tall’ or ‘flat’
‘Flat’ organisations only have a few levels in the hierarchy.
If the structure is too flat, then managers can get overwhelmed by too many people reporting to them.

15. Delayering
- is when a business removes a layer of the hierarchy from its organisational structure – usually managers in the middle
Delayering helps lowering costs.
After delayering the structure becomes flatter with a broader span of control. (don’t over do it it could stress managers out)
Delayering can give employees enhanced roles with more responsibility
Some business use delayering as an excuse to cut jobs.
Pg 213 – 214 Hoang

16. Span of control
This refers to the number of subordinates working under a superior or manager.
A narrow span of control has the advantage of a firm of close supervision, better coordination of activities, better communication – monitor more closely
A wide span of control allows independent decision making. – hard to manage effectively

17. Broad (wide) vs Narrow span of control
Too narrow – staff become de-motivated – being over-managed
Too broad – hard to manage effectively.

18. Activity Construct an organisation chart of AIS. Identify:
Chain of command
Span of control
Delegation
responsibility

19. Activity Job Roles Investigate:
The key responsibility of the following person –
CEO/Chair Person
Board of Directors (BoD)
Management
Supervisors & team leaders
Other employees (operatives)

20. Delegation & Accountability
Higher Level
Delegate
What is it?
Why do it?
What are the problems with doing it?
Pg 111

21. Channel of communication
Purpose of communication in Business: Communication is essential to the achievement of business objectives.
This is because the basic purpose of any communication is to influence the actions of others.
Effective communication is therefore an essential aspect of management

22. Purpose of communication in Business:
Goals must be established for the organisation and then communicated to objectives
Communication is vital to the development of plans
Communication is also essential in the organisation of both human and non-human resources
Leading, directing and motivating inevitably require communication skills
The control function cannot be effective without the communication of accurate and up-to-date data

23. Different types of communication: Direction
Recap:
Chain of command
Span of Control

24. Classification of communication: Direction
Vertical and Lateral
Vertical: Up and down the organisation
Lateral: Communication across the organisational

25. Communication by direction
Downward – giving orders, instructions, communicating objectives
Upward – reporting back, expressing views
Horizontal – co-ordinating, problem solving

26. Classification of communication: Formality
Formal and Informal
Formal – Using channels of communication
Informal– Channels established by the employees themselves (passes information quickly but usually distorted).

27. Direction
Where there is no facility for a reply (feedback), it is called one-way communication
Feedback built into two-way communication is a feature of a democratic leadership style
Sender
Receiver
Sender
Receiver

28. Feedback
Sender receives feedback e.g manager discusses an issue with an employee at a meeting.
This is slower than one way but sender gains more information.
Sender
Receiver

29. Why is the facility for feedback important?
Feedback ensures message is fully understood
Feedback enables subordinates to contribute to the process of decision making

30. Different structures -
Activity
Different structures -
Investigate:
Organisation by Product
Organisation by Process
Organisation by Geography

31. Factors influencing structures
Pg 111

32. Summary Why do organisations need formal structure?
What are the benefits of having a hierarchal structure?
What are the drawbacks of having a hierarchal structure?
What is meant by ‘a wide span of control?’
What does ‘tall’ and ‘flat’ mean in relation to organizational structures?

33. Bureaucracy
Higher Level
Pg 215

34. Centralised and Decentralised
Higher Level Pg
Centralisation and decentralisation refer to the extent to which authority is delegated in a business.
If there was complete centralisation, then subordinates would have no authority at all.
Complete decentralisation would mean subordinates would have all the authority to take decisions.

35. Centralised
Advantages
Disadvantages

36. Decentralised
Advantages
Disadvantages

37. Centralised and Decentralised
Question on which to become would depend on –
Size
Scale
Level of Risk
Corporate culture
Management attiudtes and compentecies
The use of ICT
Pg 218

38. Matrix structure/Project Teams/Flexible Structure/The informal
Higher Level

39. Mintzberg/Peters
Clarke

40. Outsourcing, off shoring and the migration of HR
Higher Level Pg
Outsourcing – the act of finding external people or businesses to carry out non-core functions of a business, such as cleaning or ICT maintenances.
Offshoring – a form of outsourcing that involves relocating buisness functions and processes to another country
Migration refers to the international movement of labour

41. TOK
To what extent can great military leaders of the past guide chief executives officers who are shaping the structure of their organisation?

42. Plenary Level achieved_____
What do you now know as a result of today’s lesson?
What are your areas for improvement? What are you going to do about this? 42