Chapter 11 - Management activity 2 - ORGANISING

• definition - occurs when he manger co-ordinates all business resources into the most effective formation to achieve organisational goals
• functional organisation structure - most common organisation structure used - firm is divided into departments based on the functions they perform - each department has a manger who is responsible for achieving the department goal
• advantages of functional organisation structure - employee motivation, expert knowledge and responsibility
• disadvantages of functional organisation - focus on department goals, slow communication and lack of teamwork
• geographic organisation structure - the business is divided into geographical areas
• advantages of geographic organisation structure - local managers, friendly competition and promotion
• disadvantages of geographic organisation structure - duplication of work, conflict between management and communication
• product organisation structure - the business is divided into units based on the type of product it provided to consumers
• advantages of product organisation structure - consumer demand, monitor product performance and expert knowledge
• disadvantages of product organisation structure - duplication, product competition and poor communication
• matrix (team) organisation structure -combines elements of a functional organisation structure with a team-based structure - employees work in various departments and the come together to work in cross-functional teams to complete business projects
• advantages of matrix organisation structure - increased motivation, improved communication and improved deision-making
• disadvantages of matrix organisation structure - multiple managers, training costs and lack of trust
• span of control - shows the line of authority and communication in a business
• span of control - relates to the number of employees who report directly to a manager
• factors affecting span of control - trust, employee skill, tasks and managerial workload
• shareholders - individuals or organisations that have purchases share in the firm - entitles to a share of the business profits, known as dividend
• board of directors - appointed by the shareholders of the business - responsible for creating the firm's mission statement and appointing a CEO to achieve it
• senior management - CEO hold the most senior management position - sets the overall strategic plan for the firm and reports to the board of directors
• middle management - tends to be head of specific departments - responsible for implementing the plans and policies set by senior management
• superisor - assign tasks to front-line staff and monitoremployee progress - responsible for recruiting staff for their department and for providing training
• front-line staff - employees who carry out the day-to-day duties and tasks within a department - assigned roles by their supervisor
• delayering involves removing one or more management layers in an organisaton structure
• advantages of delayering - improved communication and reduced costs
• disadvantages of delayering - decreased motivation and managerial span of control
• advantages of organising - clear chain of command, improved communication, management workload and employee motivation