topic 1- organisational structure mr. barryyear 12 business btec extended

Year 12 Business BTEC Extended

Topic 1- Organisational Structure

Mr. Barry


Company President

Vice President

Assistant Vice President

Senior Manager

Middle Manger

Junior Manager

Supervisors

Employees

Senior Manager

Middle Manger

Junior Manager

Supervisors

Employees

Assistant Vice President

Senior Manager

Middle Manger

Junior Manager

Supervisors

Employees

Senior Manager

Middle Manger

Junior Manager

Supervisors

Employees

Williams and Co. Furniture Ltd.

Organisational Structure

Mr. Barry


FUNCTION

When an organisation is structured according to the different purposes of the business. For example sales – whose job it is to generate orders and sell products.

Mr. Barry


TYPE OF CUSTOMER

When an organisation is structured according to the different customers. For example, a stationary supplies business might be divided into:

• Home – responsible for household stationary needs• Business – responsible for business stationary needs• Education – responsible for education stationary needs

Mr. Barry


GEOGRAPHIC AREA

When an organisation is structured according to the geographic area it operates in and across. For example, the European division of a business would be responsible for all business activities in Europe.

Mr. Barry


PRODUCT GROUP

When an organisation is structured according to the products and/or services it produces or sells. For example, Apple is divided into the iPod division, iPad division, Mac division and iTunes division.

Mr. Barry


Centralised or decentralised?

• The decision will be based on the following factors: -– The size of the organisation– The scale/ importance of the decision– The level of risk– The corporate culture– Management attitudes and competencies– The use of ICT

Mr. Barry


Centralisation and decentralisation

• Decision-making power can be either kept in the hands of a few people or it may be spread out among the workforce.

• The extent that decision-making is spread out amongst the workforce will depend on the characteristics and skills of managers and workers, the degree of trust and the corporate culture.

Mr. Barry


Centralised Structure

Mr. Barry


Centralised Structures• In centralised structures the vast majority of

decisions are made by a very small number of people.

• All decision are made by the person in the centre, without any form of communication between other members of the organisation.

Mr. Barry


Centralised Structures DecisionMaker

Advantages Disadvantages

Rapid decision makingBetter controlBetter sense of directioncan benefit from the decision making of experienced senior managers.

Possible delaysIncreased pressure and stress for the decision-makerInflexibilityDe-motivating for staff

Mr. Barry


Decentralised Structure

Mr. Barry


Decentralised Control

• Some decision making authority and responsibility is passed on to others in the organisation. E.g. some departments or regional offices may be empowered to make decisions on behalf of the organisation. Key decisions are made centrally.

Mr. Barry


Decentralised StructuresAdvantages Disadvantages

Input from workforceAllows better delegation of responsibilitySpecialist people with the correct skills can be hired Speedier day-to-day decision makingHigher moraleImproved accountabilityEncourages teamwork

Direct control of the owner is reducedOwner may not know the strengths and weaknesses of each workerGreater chance of mistakesGreater reliance on effective communicationDuplication

Mr. Barry


Business Functional Areas

Mr. Barry


Business Functions

• Human Resources• Sales and Marketing• Research and Development • Production/Operations• Customer Service• Finance and Accounts• Administration and IT• Distribution

Mr. Barry


Human Resources

• Recruitment and retention– Job descriptions– Person Specifications

• Dismissal• Redundancy• Motivation• Professional development and training• Health and safety and conditions

at work• Liaison with trade unions

Mr. Barry


Sales and Marketing

• Market research• Promotion strategies• Pricing strategies• Sales strategies• The sales team• Product – advice on new product development,

product improvement, extension strategies, target markets

Mr. Barry


Research and Development

• New product development• Product improvements• Competitive advantage• Value added• Product testing• Efficiency gains• Cost savings

Mr. Barry


Finance and Accounts

• Cash flow– Monitoring income/revenue– Monitoring expenditure

• Preparing accounts• Raising finance

– Shares – Loans

• Links with all other functional areas

Mr. Barry


Production/Operations

• Acquiring resources• Planning output – labour, capital, land• Monitoring costs• Projections on future output• Production methods

– Batch– Flow– Job – Cell

• Efficiency

Mr. Barry


Customer Service

• Monitoring distribution• After-sales service• Handling consumer enquiries• Offering advice to consumers• Dealing with customer complaints• Publicity and public relations

Mr. Barry


Distribution

• Organise delivery to customers

Mr. Barry


Administration and IT•Managing estates – this means the cleaning, health and safety, maintenance, security

•Reception

•Clerical work – filing, reporting, recording, record keeping, communication

•Overview of quality control

•Use of IT systems

•Administration is the functional area that supports all the others in what they do.

Mr. Barry


Group Work

Mr. Barry

topic 1- organisational structure mr. barryyear 12 business btec extended

Documents

business activities

stationary supplies

mac division

ipad division

ipod division

itunes division

european division

home responsible