1. Organisation of Departments

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

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

4. Organisation Chart

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

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

7. 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Information can soon be out of date ie people leave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

8. 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

9. Levels Of Responsibility
High
Low

10. 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

11. 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

12. 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

13. Types Of Organisational Structures
Many levels of management
Tall Organisation

14. 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

15. Flat Organisation
Few levels of management
Flat Organisation

16. 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

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

18. 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

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

20. 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

21. 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

22. 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