1. The Nature of Organisation Chapter 2, page 55

2. Structure of Part 1: The Nature of Organisations The concept and role of organisations Elements of an organisation

3. The Concept and Role of Organisations What is it? What does it serve? Why do organisations need it?

4. An Organisation is: Allows individuals to come together to achieve a common goal An organized group of people with a particular purpose, such as a business or government department A group of people who come together to achieve something they have in common ◦Can be informal – parents meeting ◦Can be formal – A school offering education to the community Whether informal or formal – it has developed to provide its members with means to fulfil their goals

5. Elements of Organisation

6. Elements of an organisation To function effectively and achieve goals – organisations require a combination of elements: ◦People who can work together ◦A formal organisation structure ◦Strategies to help guide decision making ◦Environmental understanding ◦Technological understanding and access

7. Elements of an organisation to remember – write in work books…. THE PEOPLE THE STRUCTURE THE STRATEGY ENVIRONMENT TECHNOLOGY

8. Activities page 56 Answer questions 1 -4 in your work books Once you have finished remain silent so I know we can continue on

9. The People Organisation = collection of people achieving similar goals and objectives How people work together is the essence of the organisation ◦Remember the concept of ‘corporate culture’

10. The structure Every organisation needs a formal structure to coordinate work activities and to set out the roles and responsibilities of members of the organisation. Formal structure usually represented as an organisational chart (visual representation of the formal structure that coordinates work activities and sets out roles and responsibilities)

11. Structure continued… Structures can be developed over time based on ideas Structures can be based on a particular model Some structures are a mixture of different ideas and models http://www.youtube.com/watch?v=0ghoia9_ B0Y http://www.youtube.com/watch?v=0ghoia9_ B0Y

12. The Structure… Structure must be linked to organisations strategies Without close fit between structure and strategies, inefficiencies occur Structural design should be evaluated against the purposes it is intended to serve ◦Does the structure assist the organisation to achieve its particular objectives, would a different structure work better?

13. The Structure – Vertical Specialization Hierarchy of formal authority and decision making power within the organisation ◦Chain of command from top management down to front line operations ◦With vertical specialization, the main difference between organisations is the extend to which decision making power is centralized at the top or decentralized throughout the organisation

14. Vertical Specialization

15. The Structure – Horizontal Specialization Divisions of people and resources within the organisation (departmentation) Departments can be organized on the basis of: ◦Function: Staff organized in to different departments based on functions such as production, HR, finance, marketing, sales ◦Decision: Staff organized into divisions – product, service, customers ◦Matrix: Combination of function and divisions. It allows specialisation by product while each member of staff remains part of a department. Matrix is useful in very complex or fast moving businesses

16. Horizontal Specialisation

17. In your work books Copy down the vertical structure on page 58 Copy down the 3 types of horizontal structures on page 69-70 In pairs, complete a SWOT chart for the different types of organisation structures – you will need to read pages 58-60 provide a more in depth response ◦Strengths ◦Weaknesses ◦Opportunities ◦Threats

18. The Strategy Managers daily tasks including making decisions May be long term strategic decisions about business direction or may be day to day operational decisions To make informed, reliable decisions – a variety of techniques may be used ◦Cannot simply make a decision based on how they feel – there must be a specific process followed and reasoning behind the choice

19. Decision making and Problem solving… Decision making is central to management activities Top management makes decisions about matters such as expansion of organisation, financial, what products will be marketed etc Operational level management – decisions made regarding what and how to source raw materials to develop products Front line management decisions – technical or practical natured decisions such as output levels or control of inputs

20. Decision making continued… Decisions are made either to solve a problem or to take up a new opportunity Decision making involves making choices among possible courses of action whereas problem solving consist of making a series of decisions

21. Difference between decision making and problem solving.. Problem solving consists in looking at the potential causes of the problem. Decision making consists in the method of approaching to resolve the problem

22. Decision Making and Problem Solving continued… No decisions in business are based on accidents Managers use a step by step approach for making decisions and solving problems

23. Step by Step approach Step by step approach guarantees the best quality decision making Page 64-65 – six step approach to decision making

24. 6 step approach to decision making and problem solving Define the objective Outline the facts Decide on the cause/s Develop several solutions Select the preferred alternative and implement it Evaluate the effectiveness of the solution

25. Create ‘decision making model’ p. 64 in WORD on laptop. Email kelsie.huntly@ais.aekelsie.huntly@ais.ae Guided Reading p. 64 – 65 Complete Activities 2-3 p. 67-69 Copy Q4 table as your example for the exam Complete Q4 as this is a practice exam Q Decision Making & Problem Solving Review

26. SWOT Analysis When strategic planning – SWOT analysis is often used: Strengths of the organisation (Internal) Weaknesses of the organisation (Internal) Opportunities available to the organisation (External) Threats to the organisation (External) ◦Check list for the SWOT analysis on page 69 – copy this down as will assist in exam

27. SWOT analysis Strengths and weaknesses are within the organisation Opportunity and threats are outside the organisations

28. Strengths and Weaknesses Strengths Strengths may include the range of skills among staff, the range of work related training they have experienced and positive attitudes or cultures among staff Weaknesses Weaknesses may include shortage of necessary skills, lack of specific training and less than positive attitudes within the organisation

29. Opportunities and Threats Opportunities may include developing new markets in popular products Threats may include declining markets or competitors whose products are more popular

30. Activities Conduct an individual SWOT Analysis on the case p. 68 also practice exam Q Question 2 page 70 Question 4 as a class

31. Environment Internal/external environments have a major impact on the way organisation operate How organisations responds to environment determines success

32. Technology To remain competitive or to produce a service more efficiently and effectively, large organisations have to make creative use of modern technology available to them The introduction to new technology aims to achieve greater productivity in the workplace