unit 2 business organizations n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Unit 2- Business Organizations PowerPoint Presentation
Download Presentation
Unit 2- Business Organizations

Loading in 2 Seconds...

play fullscreen
1 / 42

Unit 2- Business Organizations - PowerPoint PPT Presentation


  • 147 Views
  • Uploaded on

Unit 2- Business Organizations. Chapter 10 – Organizational Structure. You will learn…………. Why businesses need an internal structure How structure changes when businesses expand How organizational charts describe internal structures of an organization Ideas of Hierarchical Structure

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Unit 2- Business Organizations' - kiaria


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
unit 2 business organizations

Unit 2- Business Organizations

Chapter 10 – Organizational Structure

you will learn
You will learn………….
  • Why businesses need an internal structure
  • How structure changes when businesses expand
  • How organizational charts describe internal structures of an organization
  • Ideas of
    • Hierarchical Structure
    • Chain of Command
    • Span of Control
    • Line and Staff Managers
    • Delegation
you will learn1
You will learn………….
  • Business that are
    • Centralized
    • Decentralized
  • Different forms of decentralization
what is an organizational structure
What is an Organizational Structure?
  • It refers to the
    • Levels of management
    • Division of responsibilities

…… within an organization

  • Shown on an Organizational Chart
job description shop assistant
Job Description – Shop Assistant
  • Main Tasks
  • Working Conditions
delegation
Delegation
  • Giving a subordinate the authority to perform tasks
  • NOT THE FINAL RESPONSIBILITY

Authority to arrange the shelves in the store.

Authority to order the stock.

delegation1
Delegation

Delegation

Authority to arrange the shelves in the store.

A reduction in directcontrol by supervisors & managers once the tasks are done by workers.

Increased trust in workers by supervisors & managers.

Delegation must mean:

delegation2
Delegation

Authority to arrange the shelves in the store.

  • Managers
    • look after more important jobs
    • make less mistakes
    • measure success of staff more easily

Advantages

delegation3
Delegation

Authority to arrange the shelves in the store.

  • Subordinate
    • work more interesting & rewarding
    • feel more important
    • training for progress
    • career opportunities

Advantages

delegation4
Delegation

Authority to arrange the shelves in the store.

Risk of Failure

Task completed better

Complete Control

organizational chart features
Organizational Chart Features
  • Hierarchy
  • Departments
  • Chain of Command
organizational chart advantages
Organizational Chart Advantages
  • Linkages
  • Communication channels
  • Position in organization
  • Taking orders
  • Accountability
  • Sense of belonging
chain of command
Chain of Command
  • Structure of the organization which allows instructions to be passed down from senior management to the lower levels
span of control
Span of Control
  • The number of subordinates working directly under a manager
chain of command span of control
Chain of Command & Span of Control

Longer Chain of Command

Taller Organizational Structure

Narrower Span of Control

Shorter Chain of Command

Shorter Organizational Structure

Wider Span of Control

chain of command span of control1
Chain of Command & Span of Control

Longer Chain of Command

Taller Organizational Structure

Narrower Span of Control

Features

Supervisor/Manager responsible for low amount of subordinates

Less delegation

More control over subordinates

less watchfulness for the subordinates

chain of command span of control2
Chain of Command & Span of Control

Longer Chain of Command

Taller Organizational Structure

Narrower Span of Control

Features

Communication

Slower & less accurate

message through many levels

Workers less trusted

Make less decisions

Less job satisfaction

Less room for mistakes

chain of command span of control3
Chain of Command & Span of Control

Features

Supervisor/Manager responsible for many subordinates

More delegation

Less direct control of subordinates

Leads to job enrichment

Shorter Chain of Command

Shorter Organizational Structure

Wider Span of Control

chain of command span of control4
Chain of Command & Span of Control

Features

Communication

quicker & more accurate

message through fewer levels

Workers more trusted

Make more decisions

More job satisfaction

More room for mistakes

Shorter Chain of Command

Shorter Organizational Structure

Wider Span of Control

slide28

STAFF MANAGERS

  • Specialists in their area
  • Offer advice & support
  • Report to Board of Directors (BOD)
  • Very qualified experts
slide29

FUNCTIONAL DEPARTMENTS

  • One important responsibility
  • Specialist skills
  • Often efficient
  • Loyal to their department
  • (maybe not to the whole company)
  • MANAGERS in these departments are called LINE MANAGERS
slide30

REGIONAL DIVISIONS

  • Look after stores in other countries
  • Specialist knowledge of the local market
  • Popular products in given country
  • Legalities
slide31

FUNCTIONAL DEPARTMENTS

  • One important responsibility
  • Specialist skills
  • Often efficient
  • Loyal to their department
  • (maybe not to the whole company)
  • MANAGERS in these departments are called LINE MANAGERS
  • REGIONAL DIVISIONS
  • Look after stores in other countries
  • Specialist knowledge of the local market
  • Popular products in given country
  • Legalities
  • STAFF MANAGERS
  • Specialists in their area
  • Offer advice & support
  • Report to Board of Directors (BOD)
  • Very qualified experts
advantages of employing both staff managers line managers
Advantages of employing bothStaff Managers & Line Managers
  • Staff Managers provide advice to line managers on particular issues
  • Line managers have opportunity to concentrate on their main tasks
  • FUNCTIONAL DEPARTMENTS

REGIONAL

DIVISIONS

LINE MANAGERS

STAFF MANAGERS

disadvantages of employing both staff managers line managers
Disadvantages of employing bothStaff Managers & Line Managers
  • Conflict & frustration between the two groups
    • Different points of view on matters
  • Line employees confused about who to take orders / instructions from
  • FUNCTIONAL DEPARTMENTS

LINE MANAGERS

STAFF MANAGERS

management systems
Management Systems
  • Decentralized
    • Many decisions delegated to lower levels of management
  • Centralized
    • Most decisions by the center
      • Higher levels of management
centralized decisions
Centralized Decisions
  • Important Issues
  • Investment Projects worth a large sum of money
  • Taking over of other businesses
  • Overall aims and objectives of the business
  • Firm’s Growth Strategy
  • Environmental Objectives
decentralized management system advantages
Decentralized Management System Advantages
  • Decisions made by those that are “close to the action”
  • Delegation makes lower level management
    • Feel more trusted
    • More Job Satisfaction
  • Quicker Decision Making
are you able to
Are you able to…………
  • Draw & explain the significance of a simple organizational chart
  • Understand the changes that occurs to a business when the business expands
  • Know the difference between
    • Span of Control
    • Levels of Hierarchy
    • Line and Staff Managers
  • Understand the importance of delegation
  • Analyze the difference between a centralized and decentralized Organization
are you able to1
Are you able to…………
  • Explain the different forms of decentralization