there are fivefunctions of management and leadership which are: planning, organizing, staffing, coordinating and controlling. these functiokns separate the managementprocess from other businessfunctions such as marketing, accounting and finance.
planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. planning requires that managers be aware of environmental conditionsfacing their business. after assessing these environmental conditions, business managers must be now in a position to make forecasts about futuresituations.
the organising function of management controls the overall structure of the company. Without this structure, the day-to-day operations of the business becomes difficult.organizing involves designating tasks and responsibilities for employees with the specific skill needed to complete the tasks. organizing also involves developing the organizational structure and chain of command within the company.
an organizational chart is a diagram that shows a reporting or relationship hierarchy. organizational charts have a variety of uses and can be structured in many different ways.
organizational charts are useful as they: show work responsibilities and reporting relationships, allow leaders to more effectively manage growth or change, allow employees to better understand how their work fits into the organization's overall structure, improve lines of communication and create a visual employee directory.
there are four main types of organizational charts which are: functional, line, line and staff and product based.
the functional organizational structure is the mostcommonmodel found in most organizations.organizations with such a structure are divided into smaller groups based on specialized functional areas. functional organizational chart is structured where there are few managers at the top and most employees at the bottom. in this type of organisation, job classification is well defined and authority is from the top to the bottom.
advantages of a functional organizational structure are specialisation, increased efficiency, scope for expansion and flexibility.
disadvantages of a functional organizational structure are conflict in authority, difficultly in pinpointing responsibility, expensive and discipline is slackened.
the line organsational structure has only direct, vertical relationships between different levels in the firm. There are only line departmentsdirectlyinvolved in accomplishing the primarygoal of the organisation. in a lineorganisation,authority follows the chain of command.
advantages of the line structure are simplicity and efficiency.
disadvantages of the line structure are negligence and overwork.
Line and staff organizational structure consists of:
Line:managers that make business decisions for their respective departments
Staff: members who perform tasks in support of the decisions issued by the line
Line/front office comprises of professionals whose day-to-day tasks directly work toward accomplishing the organization's mission and goals
Employees in the line/front office produce and sell goods for the firm
Example: Research and development team creates the products, while the supply chain manufactures them
Actions of the line/front office generate the organization's revenue
Staff comprises of every non-revenue generating department
Staff's actions make the actions of the line possible
Example: Legal department ensures the actions of the line are within the scope of the law, accounting department balances the books
Alternative names for the staff include support groups or the back office
advantages of the line and staff organizational structure are specialisation, better decisions, lesser burdens on line officers and advancement of research.
disadvantages of the line and staff organizational structure are conflict between line and staff members/authorities, lack of responsibility, the system is quite expensive and over reliance on staff.
a product based organizational structure is organized by a specific product type. each product category is considered a separate unit and falls within the reporting structure of an executive who oversees everything related to that particular product line. for example, a retail business would be grouped according the product lines.