What is a Internal Organisation Structure? | -How the Business Communicates and makes its Decisions, in a Organised Matter
-It shows the Job Roles in the Organisation; who Reports to who, who is Responsible of who.
-The Organisation Structure is the Relationship between the Employees, Departments and Locations |
Why do Businesses have a Internal Organisation Structure | -When Businesses grow, it needs to be as Effectively as possible.
-The Organisation Structure will make it clear of what happens, which helps to clear off any air
-This makes it as Productively as Possible |
What is a Organisation Chart? | -This is how the Organisation Structure is Shown
-This shows the Management Hierarchy; roles are easily shown and the Lines of Management. |
What are the Two ways of the Organisation Structure | -Tall; Has many layers and a Long chain of Commands. Often has low numbers of Spans of Control
-Flat; Fewer layers and a Short chain of Commands. Often has large numbers of Span of Control |
What is the Span of Control? | The number of Employees DIRECTLY below the Manager, or Director, or Shareholders |
What factors the Number of the Span of Control | Normally, the Span of Control shouldn't be more then 6
The factors are:
-Experience and Personality of the Manager
-Type of Business; do the Employees need to be Supervised that much?
-Skills and Attitudes of the Employees; highly motivated employees along with Highly Skilled and Highly Qualified, then Wider Span of Control is needed |
Advantages and Disadvantages of Wide Span of Control | Good
-Layers are less, meaning the Contact between the Employees and Managers/Directors is greater
-Number of Managers can be low, reducing labour costs
Bad
-Increase in Workload, Less Managers exist |
Advantages and Disadvantages of Tall Span of Control | Good
-Less Mistakes and Increase Efficiency. Staff are Supervised
-More Promotional Opportunities can happen Inside the Business
Bad
-Communication is more Difficult, as their is more Layers inside the Business, demotivating the Employees |
Evaluate the Chain of Commands | -This shows, in a Organisation Chart, the Line of Authority in the Business where Communication goes through
-Subordinates are the People below you [Span of Control]
-Line Manager are the People alongside you |
What is Delegation | -This is when someone would give its Subordinates some of their Workload. This is Delegation
-The Subordinate has now Permission to the Job that has been given, but the Responsibility sits with the Origin Person |