1.4.3 Organisational design Flashcards
Formal Organisation
The internal structure of a business as shown by an organisation chart
Organisational chart
A diagram chart that shows different job roles in a business and how they relate to each other
Organisation charts in a business provides the following:
- Roles of employees & their job titles
-route which decisions are made
-Who’s responsible for whom
-Relationships between positions in a business - Communication systems & how info is passed
- the splits of different departments
What does every structure in a business have
hierarchies
Hierarchy
A system in which members of an organisation are ranked according to status, authority & responsibility
Chain of command
The flow of information and authority through the organisation
Span of control
The number of employees that a manager is directly responsible for
Businesses with wide span of controls means that a person controls…
Wide span of control=
Relatively more subordinates
= More subordinates
Narrow span of control =
Less subordinates
Delegation
what is it used for?
Passing on work/authority to others
used to lighten the workload of key personnel
Roles within a business organisation
Directors
Managers
Supervisors
Team leaders
Roles within a business organisations jobs/descriptions
Directors - appointed to run the business in the interests of its owners.Have ultimate authority.Usually a board of directors ->who carry out different functions e.g directors of finance
Managers - take responsibility for managing and controlling aspects of the business and make day to day decisions -> they report back to directors
Supervisors - monitor and regulate work of other employees
Team leaders - members of a team who take leadership roles to guide the work of team and ensure employees are motivated/working effectively
