Organization chart

1. What is an organization chart? Their features and advantages?

+ Organization chart refers to a diagram that outlines the internal management
structure.
+ Their features:
- It is a hierarchy. This means that there are different levels in the organization.
Each level has a different degree of authority. People on the same level of
hierarchy have the same degree of authority. There are five levels of hierarchy
from Chief Executive down to Shop Worker.
- It is organized into departments. Each of these departments has a particular job or
function.
- As there are different levels of management, there is a chain of command. This is
how power and authority are passed down from the top to the lower levels in the
organization. Because Cozy Corner Ltd is still quite a small business, the chain of
command is quite short as there are not many levels of management. Bigger
businesses are likely to have many more levels of hierarchy and therefore a longer
chain of command.
+ Their advantages:
- The chart shows how everybody is linked together in the organization. All
employees are aware of which communication channel is used to reach them with
messages and instructions.
• Every individual can see their own position in the organization. They can identify
who they are accountable to and who they have authority over.
• Employees can see who they should take orders from. It shows the links and
relationship between different departments within the organization.
- Everyone is in a department and this gives them a sense of belonging.

2. What does it mean by hierarchy in an organization chart?

Hierarchy refers to the levels of management in any organization, from the highest
to the lowest. A level of hierarchy refers to managers/supervisors/ other employees
who are given a similar level of responsibility in an organization.

3. How are departments in an organization chart organized?

Departments in an organization chart are typically organized based on the
functions, specialties, or areas of expertise within the organization. The specific
organization of departments can vary widely depending on the nature of the
organization, its industry, size, and management philosophy.

Chain of command
1. What is a chain of command? What does it show? What are the advantages of it?
*Chain of command is the structure in an organization which allows instructions to
be passed down from senior management to lower levels of management.
*Advantages of short chains of command:
+ Communication is quicker and more accurate. Each message has fewer levels to
pass through before reaching the intended person.
+ Top managers are less remote from the lower level of the hierarchy. These top
managers should be more in touch with people below them as there are fewer
management levels to get to know.
+ Spans of control will be wider. This means that each manager is responsible for
more subordinates. Why is this an advantage?
• If superiors have more people to manage, age, it will encourage managers to
delegate more. This is because, as their department is larger, they cannot possibly
do all the important work by themselves.
• There will be less direct control of each worker and they will feel more trusted.
They will be able to make more decisions by themselves. They may obtain more
job satisfaction.

2. What does the long chain of command of a business mean?

The "long chain of command" in a business refers to the hierarchical structure of
authority and communication that exists within the organization. It signifies the
number of levels of management or supervision through which decisions and
directives must pass before reaching frontline employees or being implemented.

When a business has a long chain of command, it typically means that there are
numerous levels of management or supervision between the top executives (such
as the CEO or president) and the employees who directly carry out the day-to-day
tasks. Each level in the chain represents a layer of decision-making authority and
responsibility, with information and instructions flowing downward through the
hierarchy and feedback moving upward.

Management and Leadership

1. What are functions and roles of a manager?
+ Planning
+ Organising
+ Coordinating
+ Commanding
+ Controlling

2. What does it mean by delegation?

Delegation means giving a subordinate the authority to perform particular tasks.

3. How many styles of leadership are there? What are they and their features?
*There are different approaches to leadership that are adopted and these can be
summarized into three main leadership styles:
+ autocratic leadership
+ democratic leadership
+ laissez-faire leadership.
*Autocratic leadership:
Autocratic leadership is where the manager expects to be in charge of the business
and to have their orders followed. They keep themselves separate from the rest of
the employees. They make virtually all the decisions and keep information to
themselves. They tell employees only what they need to know. Communication in
the business is mainly one way, that is, downward or top-down and the workers
have little or no opportunity to comment on anything.
Potential advantage: Quick decision making, for example, during a crisis.
Potential disadvantage: No opportunity for employee input into key decisions,
which can be demotivating.
*Democratic leadership:
Democratic leadership gets other employees involved in the decision-making
process. Information about future plans is openly discussed before the final
decision is made, often by the leader. Communication is both downward or top-
down, and upward or bottom-up.
Possible advantage: Better decisions could result from consulting with employees
and using their experience and ideas - as well as being a motivating factor.
Possible disadvantage: Unpopular decisions, such as making workers redundant,
could not effectively be made using this style of leadership.
*Laissez-faire leadership:
Laissez-faire is French for 'leave to do. Laissez-faire leadership tends to make the
broad objectives of the business known to employees, but then they are left to
make their own decisions and organize their own work. Communication can be
difficult in this type of organization as clear direction is not given. The leader has
only a very limited role to play.
Possible advantage: Encourages employees to show creativity and responsibility.
Possible disadvantage: Unlikely to be appropriate in organizations where a
consistent and clear decision- making structure is needed, for example, in
providing customer service.

Trade Union
1. What is a Trade Union? Their roles?
+ A trade union is a group of employees who have joined together to ensure their
interests are protected.
+ Employees generally share many of the same interests, such as improving their
pay, having a pleasant environment in which to work, being treated fairly by their
employer, being given proper training and working in a safe environment. Forming
a trade union is a way of helping employees to achieve improvements in these
different aspects of their employment - a trade union is a type of pressure group.

2. What are the benefits and drawbacks of being a member of the Trade Union?
*Benefits:
+ Strength in numbers when negotiating with employers.
+ Improved conditions of employment, for example, rates of pay, holidays and
hours of work.
+ Improved environment where people work, for example, health and safety, noise,
and heating.
+ Improved benefits for members who are not working because they are sick,
retired or have been made redundant.
+ Improved job satisfaction by encouraging training.
+ Advice and/or financial support if a member thinks that they have been unfairly
dismissed or made redundant, have received unfair treatment, or have been asked
to do something that is not part of their job.
+ Benefits that have been negotiated or provided for union members such as
discounts in certain shops, provision of sporting facilities or clubs.
+ Trade unions often meet government officials to influence policies for the benefit
of workers.
+ More secure employment where there is a closed shop.
*Drawbacks:
+ It costs money to be a member.
+ Workers may be required to take industrial action even if they don't agree.
*Trade unions can have both advantages and disadvantages for employers too:
+ They can help improve communications between workers and management.
+ Wage agreements will be easier to negotiate with a trade union than with many
individual workers.
However:
+ trade unions can organize strikes if they do not receive the pay levels and work
conditions they demand.
+ wages are likely to be higher adding to business costs - when many employees
are trade union members.