1. The management of people within a business
Internal Organisation

2. How & why business organise themselves
Internal organisation tells us how the business is structured for decision making and communication.
Head teacher
Pastoral leader
Form tutor
Deputy Head
Head of department
Subject teacher

3. Why Organise?
What would happen if nobody organised anything at school?

4. Formal or Informal
Formal organisation states what jobs people have, what responsibilities and how much power & authority. It states the channels of communication
Head teacher
Pastoral leader
Form tutor
Deputy Head
Head of department
Subject teacher
Is this formal or informal?

5. Formal or Informal
The informal structure is based on social groupings:
Informal groupings
Common interest groups
Semi-formal groups
Friendship groups

6. Hierarchy Pyramid

7. Delegation
If the head teacher wanted a new display-board, they would tell the deputy head who would tell the head of department, who would tell the subject teacher.

8. Delegation Requests or complaints Orders or Instructions
Passing authority down to lower levels is called delegation
Orders or Instructions
Requests or complaints

9. Span of control
The span of control refers to the number of people over whom a person has direct authority. There are two types:
Narrow span of control
Wide span of control
Head of department
Head teacher

10. Centralised or Decentralised

12. Centralised or Decentralised?
In a centralised organisation, everything is controlled by one person.
In a decentralised organisation, people are responsible for their own actions, and have increased responsibility.

13. Organisational Charts
1) The hierarchical pyramid
2) The family tree
3) The circular organisation

14. How do you structure? Division by function
This is when a firm is divided up by the jobs people do. (Sales / Finance / HR / Production)
Division by geography
This is when the firm is divided up by geographical area. (Europe / America / Asia / Africa)
Division by product
This is when the firm is divided up by the type of product being made. (Ford  Fiesta / KA / Mondeo / Galaxy / Escort)

15. 6 KEY POINTS
Good organisation is essential to the smooth _____________ of the company
Both __________ and informal structures will exist in the firm
A ______________ pyramid is a structure which is narrow at the top and wide at the bottom
A hierarchical pyramid has a clear chain of __________ and channels for ________
Firms can be organised centrally of __________
Drawing organisational _________ helps to understand organisation structures
charts / running / hierarchical / communication / formal / command / de-centrally