1. iGCSE Business Studies
2.2.1 Organisation Charts

2. Learning Outcomes
Draw, Interpret and understand simple organisational charts
Understand the features of simple hierarchical structures:
Span of control
Hierarchy
Chain of command
Roles, Responsibilities and inter-relationships between people in organisations

3. Organisational Structure
Refers to the ways that businesses organise their human resources (employees)
As businesses grow there is a growing need for the structure to be formalised
What is meant by a Hierarchy?

4. What is the best way to structure your business?
Central Question
What is the best way to structure your business?

5. Formal Versus Informal Structures

6. What do you think these terms mean…..
Hierarchy
Chain of command
Span of control
Delegation
-Subordinate
Line Manager

7. Other Employees (Operatives)
Key Term: Hierarchy
CEO/MD
Board of Directors
Management
Supervisors
Other Employees (Operatives)
Senior management
Pay and Authority
Middle management
Junior management

8. Key Term: Chain of Command
Chain of command: The way authority and power are passed down in the business - Who is responsible to whom? *

9. Key Term: Span of Control
Span of control: The number of subordinates directly reporting to a superior
Short hierarchy
Wide span of control
Freedom for subordinates
Lower cost
Tall hierarchy
Narrow span of control
Tight supervision and control

10. Key Term: Organisation Chart
Managing Director
Purchasing Manager
Production Manager
Finance Manager
Marketing Manager
Personnel Manager
Training
Officer
Industrial
Relations
Buyer
Logistics
Officer
Warehouse
manager
Wages
Clerk
Cost
Accountant
Marketing
Manager
Sales
Production
Control
Manager
Quality
Sales Representatives
Identify the span of control of:
the Managing Director
the Purchasing Manager
Would you describe this as a wide or a narrow hierarchy?

11. Task – Based on this Pastoral chart, can you draw a curriculum chart

12. Homework Task
Describe the Organisation Structure of BSM. Make sure you use the words:
Span of Control
Chain of Command

13. Task – Sinbad Plc
Using the information from the sheet draw an organisational chart for Sinbad Plc

14. Sinbad Plc task answers
= Span of control
Managing Director
Sales
Representatives
Public
Relations
Officer
Manager
Marketing Director
Public Relations
Staff   
Training
Team 
Manager
Human
Resources
Personnel Director
Purchasing Director
Drivers
Senior
Buyer
Transport
Officer
Warehouse
Manager
Buyers
Staff  
Wages
Clerk
Cost
Accountant
Finance Director
Accounts
Staff  
Shift
Manager x3
Quality
Manager
Production Director
Production
Line Workers  

15. Key Term: Delegation
Refers to passing authority & control on to others. Manager retains responsibility, but the subordinate does the work. What are the benefits of delegation?

16. Benefits of Delegation
Makes work more interesting
Increases Job satisfaction
Prepares staff for promotion
Gives managers more time for other issues
Subordinate feels trusted

18. Why might a manager be reluctant to delegate?

19. Key Terms: Centralisation and decentralisation
Centralisation: Retaining control within the top levels of the hierarchy – at head office
Decentralisation: Delegating authority down the hierarchy
Centralisation
Retains tight control at the top of the organisation
Employees are not able to show flair and initiative
Decentralisation
Motivates employees by giving them more freedom and responsibility
Employees may not have the experience/training to carry out tasks effectively
Would you rather work in an organisation that was centralised or decentralised?