2.5 business

• What is an organisational structure

  The way in which a business is structured through its employees via their jobs and responsibilities.
• Why does a business have an organisational structure

  So that people can communicate better in a business as well as employees understanding their role and responsibility.
• what is a chain of command

  The flow of authority through the business. People higher up the chain have more power and responsibility. They delegate tasks to their subordinates (people in the lower chain)
• What is span of control

  Refers to how many people are working for you. E.g s manager has 6 people working for him so his chain of command is 6
• what is delegation

  This is when a task is given to a subordinate in an organisation. There will often be a timescale for this task to be completed.
• what is a subordinate

  This is an employee who is in a job which is lower ranked. A manager can delegate tasks to their subordinates.
• what is a hierarchical structure

  The further up the hierarchy the more responsibility the employee has
• Advantages of heirarchical structure

  • Lots of opportunities for promotion
  • Smaller spans of control. Get to know your employees strengths
  • Knowing subordinates allows you to delegate tasks
• Disadvantages of a hierarchical structure

  • Long chain of command
  • Communication is slow from top to bottom
  • Expensive to implement as there are more managers and supervisors
• What is a flat structure

  Some companies make use of a flat structure, businesses such as a restaurant have a wide span of control and a short chain of command. This allows information to flow quickly.

  
• Advantages of a flat structure

  • Smaller chains of command mean it is easier to communicate between different levels
  • More delegation, staff are given more responsibility which means they get to work to their full potential
  • Fewer levels of management

  encourage a quicker decision making
• Disadvantages of a flat structure

  • Staff can be overworked as there is less supervision. This can lead to demotivation and increased staff for the members of staff
  • Can create confusion amongst staff if a manager is not present. Staff may not know their roles and responsibilities
  • Wide span of control means that managers may have too many staff to manage
• What is a centralised structure

  A centralised structure leaves decision making to the employees higher up the hierarchy (senior managers)
• Advantages of a centralised structure

  • Easier to implement policies for the whole business
  • Prevents other parts of the business becoming too independent
  • Easier to coordinate items such as budgets
  • Quicker decision making at the top of the hierarchy. Do not need consult staff lower down.
• Disadvantages of a centralised structure

  • Senior leaders may not know what's best for the operations that occur lower down the chain of command
  • Team leaders and floor staff more likely to understand customer needs
  • Lack of authority for managers further down can be demotivating
  • Less flexible decision making lower down. Staff at lower levels will not be able to make quick decisions.
• What is a decentralised structure

  Decisions in this structure are spread out to include more members of staff such as managers e.g. across the company from different locations.
• Advantages of a decentralised structure

  • Decisions are made which are closer to customer needs. Could result in a better service.
  • Ability to respond to local issues.
  • Improved staff motivation as they are involved in decision making process
  • Can be a way of developing staff and training them for management positions.
• Disadvantages of a decentralised structure

  • Decision making can take a longer time and not be as strategic
  • Harder to ensure that there is a consist policy at each location in a business
  • Diseconomies of scale e.g. duplication of roles
  • Can lead to confusion as to who is responsible in a crisis situation
• Importance of Effective Communication

  • Communication can take many forms in business ranging from emails, phone calls, texts, social media & video conferencing. (few examples)
  • Poor communication can have major impacts on efficiency in the workplace. Once example would be if an email is too complex or not clear enough the recipients may not understand what is being expected. This would lead to a delay in the progression of a task.
• Effects of poor communication on the employee

  • Poor performance
  • Demotivation
  • Poor relationship with peers
  • Increased levels of stress
• Effects of poor communication on the business

  • Increased costs
  • Higher staff turnover
  • Poor employee relationships
  • Lower productivity levels
• Impacts Of Insufficient Or Excessive Communication

  If communication is poor employees will lack enthusiasm at work.This leads to demotivated staff who are not performing at their most productive.
• Barriers to communication

  • Jumping to conclusions : Receiver not correctly receiving message as they assumed they understood what was mean
  • Lack of interest : Receiver is disinterested
  • Lack of feedback : Receiver not knowing where to improve
  • Distorted message : Unclear/inaccurate message
• Different ways of working (part 1)

  • Full time : Working at a place of work normally above 35 hours.
  • Part time : A worker who works less time than a full time worker / hours. Benefits would be issued on a pro rata basis to this workers.
  • Flexible (flexi time) : A way of working that suits an employees needs. E.g. working from home or starting late and finishing later in the day.
• Different ways of working (part 2)

  • Permanent : Permanent position in a company, often on a salary. Workers will be employed unless they leave, are fired or made redundant
  • Temporary : Temporary job to cover a certain period. E.g. the Christmas period as more staff may be needed during this time.
  • Freelance : A self employed worker that works on a contract to contract basis. They set their own rates of pay. E.g. a cameraman
• Impact of technology on work

  • Organises the work environment by providing payroll, stock control and other software
  • Allows for easy production of documentation such as invoices and letters
  • Enables conferencing calling between multiple participants
  • Enables video conferencing to have meetings with peers, saving on plane fares, fuel and being more cost effective
  • Enables remote working from home, allowing people to fit work around family commitments and work on their own hours, with less travel and no need to commute
• Advantages of remote working

  • Fit work around family commitments
  • Work on own hours
  • Less travel
  • No need to commute
• Disadvantages of remote working

  • No socialisation with other workers
  • Hard to switch off from work
  • Lack of discipline
  • Becoming lazy
• Different Roles & Responsibilities

  • Directors
  • Senior Managers
  • Operational Staff
  • Support Staff
• Directors

  • Make strategic decisions
  • Ensure a business is successful for all the stakeholders involved
  • In charge of when to provide dividends to their shareholders. They can withhold dividends if a low profit is made as this can cause issues for the business in the long term
• Senior Managers

  • Operate at the top of the business and make tactical decisions on a day to day basis
  • Appointed by the board of directors to help meet objectives
• Operational Staff

  • Take care of the day to day running of the business
  • Not involved in any strategic management decisions
• Support Staff

  • Carry out a specific role which helps the business function e.g. IT support
• The process of recruiting a new employee follows these

  steps:

  1. The business identifies the need for a new member

  of staff e.g. this may be because someone is leaving

  or there is an increased workload

  2. The business writes a job description

  3. The business writes a person specification

  4. The job is advertised

  5. Candidates fill in application forms and the

  successful ones are interviewed and a selection is made.
• Job Description

  ❑ Describes the roles and responsibilities of a role

  ❑ It would also describe what the employee would do

  on a day to day basis
• Person specification

  ❑ Outlines what qualities the employer is looking for this can include:

  ❑ Persona qualities ❑ Skills

  ❑ Qualifications

  ❑ Experience
• Application form

  When a candidate would like to apply for a job they fill in an application form. This allows an employer to compare applicants and identify which ones are suitable for the position.
• CV

  ❑ This is a summary of a candidates working life to date, this will summarise all their experiences so employers can get an overview of their working life.
• Recruitment methods

  • Internal recruitment
  • external recruitment
• Internal Recruitment

  ❑ This is recruiting staff that already work in a business

  ❑ It can be applications for a promotion

  ❑ These tend to be advertised via notice boards

  and staff emails.

  ❑ These candidates are known to the business and require less training, therefore it is less expensive to train them. There is also less advertising costs.