2.2 Organisation and Management Flashcards
Define the ‘organisational structure’.
Organisational Structure is like the skeleton and nervous system of a business. It shows where power, authority, responsibility and status lie, and how communication flows throughout.
Illustrate a real life example of an Organisational Structure.
Illustrate an example of an Organisational Structure in a business.
Define a Hierarchy. Give an example.
A Hierarchy shows who is the boss of who. Put simply, who gets to tell someone else what to do.
The managing director has authority over the operations, marketing and finance managers, but must follow the instructions of the board of directors.
Define ‘Chain of Command’.
Chain of command is how authority is passed down in an organisation.
So if the operations manager is responsible for the overall production of cars an individual employee may be responsible for quality control.
What are the benefits of a chain of command?
It brings order to an organisation. Employees know who they take instructions from, managers and leaders know what their authority is, what they can and can’t do without permission from their boss.
It also means individuals can be held accountable. If sales start to fall the marketing manager will have to explain why, and take action to solve the problem.
Define ‘Span of control’
Span of control is the number of employees one manager or leader has authority over.
In Higher Arch the marketing manager has a span of control of two employees, while the operations manager has a span of control of 3 employees.
What happens if there is a larger span of control?
A larger span of control will mean less control for the manager or leader as they will have more subordinates to supervise.
A larger span of control usually leads to more delegation of authority to subordinates. The manager or leader will not be able to directly control many subordinates.
What happens if there is a narrower span of control?
A narrow span of control will mean more control and less delegation. This is the conflict between trust and control.
What is a larger span of control associated with?
A larger span of control and greater delegation is usually associated with highly skilled and experienced employees who need less direct supervision.
What are the benefits of delegation?
Managers may be reluctant to delegate, as they don’t trust subordinates to do a good job and fear losing control. However, delegation can be hugely beneficial to a skilled leader who can delegate effectively. It means increased motivation among subordinates and managers can focus on more important tasks.
What are the roles and responsibilities of a director?
Directors are responsible for the big picture, setting out the vision and the long term goals for the business and providing inspiring leadership to get there.
They are ultimately responsible to the shareholders (owners of the business) so need to protect their interests.
What are the roles and responsibilities of a manager?
Managers are responsible for delegating tasks, motivating employees, and solving day to day problems, so that the goals of the directors are achieved.
What are the roles and responsibilities of a supervisor.
Supervisors, more often known as team leaders, and employees, work efficiently towards smaller goals set by managers.
If there is a big problem or issue they need to pass the information up through the organisation.
Many managers or supervisors will hope to perform well so they can gain promotion to a higher position in the hierarchy.
List the functions of management in a business.
In reality, managers or leaders may complete many functions at the same time or situation. For example, an operations manager at a meeting with other department heads will be planning further steps, but also co-ordinating plans with other managers and controlling, through reviewing if previous targets have been met.
To help we will go through a day in the life of Richard who is a marketing manager
In the morning he plans for the next marketing campaign.
He will then coordinate with the finance manager to make sure there is sufficient budget for the campaign.
Organise the different task to be carried out and delegate to the marketing team
Then command the photographer to complete the publicity shots – and motivate by setting a target for completion date.
Control by looking at the sales figures from the last campaign and checking if targets have been met.
