Organisation and management Key objectives The objectives ofthis chapter are to re «© how to draw. interpret and understand organisation charts simple hierarchical structures: span of contol levels of hierarchy. chain of command «the oles and responsibilities of directors, managers, supervisors nd other employees in an organisation, nd inter-relationships between them © therole and functions of managemen coordinating, commanding and controling © the importance of delegation, trust versus control © features of the main leadership styles ~ autocratic, democratic and laissez-faire «how to recommend and justify an appropriate leadership style in @ given circumstance «© wnat a trade union is and the effects of employees being union members tanning, organising Key definitions m Definition ie ‘The levels of management and divisions of responsibilities within an organisation. structure. Jrganisatignal structure Organisation chart 2 giagram that outin The levels of management in any organisation, from the highest tothe lowest. ‘evel of hierarchy’ refers to managers/supervisors/other employees who are given a similar [evel of responsibility in an organisation. ‘The structure in an organisation that allows instructions to be passed down fram senior management to lower levels of management. ‘The number of subordinates working directly under a manager. ‘Senior managers who lead a particular department or division ofa business, ct responsibility aver people below them in the hierarchy of an internal manager Hierareny "Chain af command Span of control Directors ‘Managers who have d organisation, “Junior managers win have direct control over the employees betow them in the Line managers Sara Pn at Scarnanpu' 7 See a roar pp oun VGvand teasaes A SORTER: Rs ‘hig aboriginal toprform pari tas Canieahp olen Theda approxchn dating wit opi pid king Groen wantin a jst of authori ~ autocratic, democratic ar laissez-faire Autocratic leadership The manager isin charge a the business takes all decisions and & fe followed 9 takes all decisions and expects orders obs Democratic leadership All employees are involved inthe decision-making process. Laisser-faire leadership Makes the broad objecti f the bi er teltto ectves of he business known toemplayees, who are then make their own decisions and organise theit own work. oie a Tadeo Agra employes wotare ned neler ersure eines are peiOrganisational structure Span of contro 'an organisation chart with few levels will have wide spans of contol «this cn lead to more delegation Chain of command! «the more levels of hierarchy the longer the chain of command willbe ‘Tong chain of command may lead 10 poor communication PAGES 76-81 EE | ‘An organisation chart shows: ‘how jabsoles are linked Sines of command and: ‘communication ‘sho each worker should report 10 Organisational structure Herarchical structure: + shows level of management — ‘om highest to lowest “higher levels have more authoniy and contro! Management, leadership and trade unions Lasser leadership: + objectives explained to workers = they organise and plan own work + BLT limited role for leader Wy jin tad union? Management rl: « suength in uber Spmring fg enpojer negoistins Sorcaning kes et mor elective Seong 1 npot for workers sonmans uaagernant Delegation: and leaders Rea reser trade union: undertake rbot « nesses esteem of employes membership seu tes conti Anbcratc asent Scrat lade f worterinoheent * en manana a ‘motivating temployee ideas encouraged BUF. time consuming neway communication 0 employee involvement “BUT. quick decisionsCommon errors Ea | Target your revision a 2 3 The levels of management and division of responsibilities within an organisation are shown by its organisational structure. ide spans of control resutt in short chains of command. Managers in any organisation have important roles. Delegation frees up management time to concentrate on important ‘issues such as key decision making, There are several contrasting leadership styles and each one might be appropriate in different circumstances. Employees can often benefit from ing a trade union. State three departments usually found inthe Suggest one possible benefit of delegation tg organisational structure of a business. non-management employees. State two possible benefits of a short chain of 5 Name two leadership styles. command. 6 Suggest two possible benefits of trade union List three functions of management. membership to an employee Answers on page 146 rer Waviwrong 7 ‘Delegation means that employees have | Delegation gives the authority or power to junior managers or employees final responsibility for decisions. todo a job - the senior manager still has the final responsibility Thi for 1e democratic leadership style is best | It depends on the nature of the business and the situation itis in, Thereis all businesses. no single leadership style that is best for all businesses and all situations. Sample questions and answers Ea | wi ider spans of control mean that more | A wider span of control means that more employees report to each snagers are needed. ‘manager ~ so fewer managers might be needed, FurnCo is a large retail furniture shop. It has several departments including kitchen furniture, lounge furniture and bedroom furniture, as well as marketing and finance. FurnCo’s organisation chart is: 6 tal manager Adminstration Oetat manage manager ——_1_—_, -——_1— © Peveryretaimanagess Oo oO finance Marketing om oe manager manager ‘manages OP Ranapers xithen tounge Dining Becta Soe oo ef 6. oe Junior departmental managers pl,-t, 1.1, 1,,1,,1 1, 00 06 06 66 66 06 66 6 Retail employeesFinn is the Managing Director. He believes that ‘maki i n a t making all decisions and tla employees to ary them out is the best style of leadership for urnCo. ‘Tt worked well when we had the serious fi - knew what to do because I told them!” ae Ae In recent months he has received more complaints from customers that furniture styles are not changing to meet current customers’ tastes. 1 Explain two features of FurnCo's organisation chart, (6) Student's answer ‘The chain of command is long in FurnCo[K] - there are six ievels of hierarchy. [AP] Thiemigtmakeconmuricatin saw a.m ow 5a meseage ao to pas through man levels. [An] of : . ‘The span of controlis narrow. [K] Each employee will not have much delegated authority as they are tightly controlled by managers. [An] 2 Do you agree that ‘making all decisions and telling employees to carry them out’ is the best style of leadership for a manager? Justify your answer. {e) Student's answer ‘The statement ‘making ll decisions and telling employees to carry them out is an autocratic leadership style. [K] This can have some benefits when there isa disaster, such as a fire. Orders can be given quickly and all employees willknow what: todo in an emergency. There Is no time for them to ask questions or be involved in decision making [Ani] ‘Another leadership style that a manager could use would be democratic where all employees are encouraged to take part in decision making with the managers [K] This can be motivating Teling employees to carry out decisions is not the best form of leadership, Teacher's comments This answer starts well but fails to argue why either autocratic or democratic leadership might be ‘the best style. The answer does not gain the second mark for analysis because of this - and there is no evaluation or judgement that is supported by arguments. The Final sentences could have been evaluation if there had been an argument to support it, for example, the democratic style mig employees’ views, for example, which style prefer to purchase. ss of product customers might Marks: K2; An; EvO = 3 in total hit be best when a manager wants to gain Teacher's comments This answer identifies two appropriate features of an organisation chart - chain of command and span of control. The effect of a long chain of command and a narrow span of control are both briefly analysed. However, the point about the span of control is not applied - the student should have given examples of the span of control being two within FurnCo’s structure. Marks: in total. 2; Apt; An? = 5Exam-style questions