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BUSS2 – Mr Pryer People • Organisation structure • Workforce effectiveness • Recruitment, selection, training • Employee motivation Marketing • Effective Marketing • An effective marketing mix • Product • Promotion • Pricing • Place • Marketing & competitiveness Objectives: • To understand the terms organisational structure, span of control, hierarchy • To be able to explain the advantages and disadvantages of tall and flat organisational structures • Be able to evaluate an proposal to change an organisational structure Stationery Partners • 3 friends started a company selling stationery to offices around North London. It was successful and soon they rented an office and needed to hire people to sort out accounts, customer service, secretaries, cleaning, ordering stock packing orders and despatch. • They need you to organise an organisation chart showing how it could be achieved – how many people do you think they need. • Use some of the words from the starter to explain how it would work What are the pros and cons of these two structures? Consider: Promotion prospects Job variety Communication Decision Making Control/co-ordination of staff activities Cost Tall Structure Advantages: • More promotion opportunities • Tighter control due to narrow spans of control • Possibly less stressful with greater specialisation Disadvantages: • Larger gap between directors and ‘coal-face’ (communication up and down difficult) • Longer to implement decisions • Less job rotation/ development in the role • Expensive – managers are generally paid more Flat Structure Advantages: Encourages delegation and with it variety and on the job development Communication up and down the chain of command improves Decision making may be more accurate and implemented more quickly Cheaper labour costs Disadvantages: May be more stressful as there is wider delegation/ variety Staff may not receive adequate supervision Staff may not see a chance to progress and so they leave Key terms • Organisational Structure – the relationship between different people and functions in an organisations • Organisation chart – shows this structure in a diagram • Organisational hierarchy – the vertical division of responsibility and authority • Levels of hierarchy – the layers of supervisory/ management levels in an organisation • Span of control – the number of individual employees under the control of one manager High Class Furnishings (Page 204) 1. How is the chart useful to the business? 2. Discuss the production director’s view that a change of structure might ‘adversely affect the current clear lines of accountability and responsibility’ – Points in agreement – Points against this view Peter’s Problems P208 Q 5 Find a partner one face the board the other face your partner. Explain the following without actually using the word... • • • • • Maslow Job rotation Commission Piece Rate Salary The extent to which a named individual is held responsible for the success or failure of a particular policy project or piece of work Delegation The ability or power to carry out a task Responsibility Being accountable for ones actions Authority The process of passing authority down the hierarchy from a manager to a subordinate Accountability