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Chapter # 7 Organisation and Management

Chapter 7 discusses organizational structure, including definitions of hierarchy, organizational charts, and the roles of management. It highlights the advantages and disadvantages of different leadership styles (autocratic, democratic, laissez-faire) and the importance of delegation. Additionally, it covers the role of trade unions in improving employee conditions and the definitions of various management positions within an organization.

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2 views

Chapter # 7 Organisation and Management

Chapter 7 discusses organizational structure, including definitions of hierarchy, organizational charts, and the roles of management. It highlights the advantages and disadvantages of different leadership styles (autocratic, democratic, laissez-faire) and the importance of delegation. Additionally, it covers the role of trade unions in improving employee conditions and the definitions of various management positions within an organization.

Uploaded by

kabutt139
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter # 7

Organization &
Management
Kamran Alam Butt
Objectives

• Simple hierarchical structures: levels of hierarchy, span of


control, chain of command.
Organizational Hierarchy
Definitions
• Organizational structure refers to the levels of management and
division of responsibilities within an organization.
• Organizational chart refers to a diagram that outlines the internal
management structure.
• 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.
Advantages of an organization chart

• 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.


Activity

• Draw an Organizational Chart of City School DHA Campus.

• Make a Group of 4 students to do this activity


Objectives

• Simple hierarchical structures: span of control, chain of


command e.g. tall/short
• Roles and responsibilities of directors, managers, supervisors,
other employees in an organization and inter-relationships
between them
Chain of command and span of
control
Business A has a tall Business B has a wide
structure and a long structure and a short
chain of command. chain of command

There is no perfect organizational structure.


In recent years many organizations have
made their structure ‘wider’ and with a
shorter chain of command. In some cases,
this has been done by removing a whole
Definitions

• Chain of command is the structure in an organization which


allows instructions to be passed down from senior
management to lower levels of management.
• The span of control is the number of subordinates working
directly under a manager.
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, 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 take more decisions by themselves. They may obtain more job
satisfaction.
Drawbacks of short chains of
command

• Wider spans of control, with more people to be directly


responsible for, could mean that the managers lose control of
what their subordinates are doing. The subordinates could
make many mistakes if they are poorly trained.
Roles, responsibilities and inter
relationships between people in
organizations
Objectives

• Functions of management, e.g. planning, organising,


coordinating, commanding and controlling
• Importance of delegation; trust versus control
Definitions

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


• Leadership styles are the different approaches to dealing with people and making
decisions when in a position of authority autocratic, democratic or laissez-faire.
• Autocratic leadership is where the manager expects to be in charge of the business
and to have their orders followed.
• Democratic leadership gets other employees involved in the decision-making
process.
• Laissez-faire leadership makes the broad objectives of the business known to
employees, but then they are left to make their own decisions and organize their
own work.
The role and functions of
management

• Planning
• Organizing
• Coordinating
• Commanding
• Controlling
Delegation
Advantages of Advantages of
delegation for the delegation for the
manager subordinate
• Managers cannot do every job themselves. As we • The work becomes more interesting and
have seen, it became very difficult for Bill to rewarding.
control all of the running of Cosy Corner by himself.
By delegating, he was able to concentrate his time • The employee feels more important and
on other important management functions. believes that trust is being put in them to
• Managers are less likely to make mistakes if some perform a job well.
of the tasks are performed by their subordinates.
• Managers can measure the success of their staff
• Delegation helps to train workers and
more easily. They can see how well they have done
they can then make progress in the
in performing the tasks delegated to them. organisation. It gives them career
opportunities.
Delegation
Advantages of Advantages of
delegation for the delegation for the
manager subordinate
• Managers cannot do every job themselves. As we • The work becomes more interesting and
have seen, it became very difficult for Bill to rewarding.
control all of the running of Cosy Corner by himself.
By delegating, he was able to concentrate his time • The employee feels more important and
on other important management functions. believes that trust is being put in them to
• Managers are less likely to make mistakes if some perform a job well.
of the tasks are performed by their subordinates.
• Managers can measure the success of their staff
• Delegation helps to train workers and
more easily. They can see how well they have done
they can then make progress in the
in performing the tasks delegated to them. organization. It gives them career
opportunities.
Delegations
Why is it important to have good
managers?
A good manager should:
• motivate employees
• give guidance and advice to employees they manage
• inspire employees they manage to achieve more than they
thought possible
• manage resources effectively and keep costs under control
• increase profitability of the business.
Objectives

• Features of the main leadership styles, e.g. autocratic,


democratic and laissez-faire
• Recommend and justify an appropriate leadership style in
given circumstances
• What a trade union is and the effects of employees being
union members
• autocratic leadership
Styles of leadership
• 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
• 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
• 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
• 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, 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. However, there are disadvantages for an
employee of trade union membership:
• It costs money to be a member.
• Workers may be required to take industrial action even if they don’t agree.
Trade Union Advantages and
Disadvantages

• They can help improve • trade unions can organise strikes if


communications between workers and they do not receive the pay levels and
management. work conditions they demand
• Wage agreements will be easier to • wages are likely to be higher – adding
negotiate with a trade union than with to business costs – when many
many individual workers. employees are trade union members
Definitions

• Directors are senior managers who lead a particular department or


division of a business.
• Line managers have direct responsibility for people below them in
the hierarchy of an organization.
• Supervisors are junior managers who have direct control over the
employees below them in the organizational structure.
• Staff managers are specialists who provide support, information
and assistance to line managers.

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