Organisation And Management (Copy)
2 People in Business
2.2 Organisation and Management
2.2.1 Organisational Charts
Key Concepts
- Levels of hierarchy: layers of management in an organisation.
- Span of control: number of people a manager directly supervises.
- Chain of command: route through which authority is passed down.
| Structure | Features | Example |
|---|---|---|
| Tall (narrow span) | Many levels, longer chain, close supervision | Army, traditional banks |
| Flat (wide span) | Fewer levels, shorter chain, more delegation | Start-ups, IT firms |
Roles
- Directors – set overall strategy.
- Managers – implement plans, control departments.
- Supervisors – oversee day-to-day staff work.
- Employees – carry out tasks.
- Inter-relationships – communication must flow up & down.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
2.2.2 Role of Management
Management Functions (Fayol’s classic 5)
- Planning – setting objectives and strategies.
- Organising – arranging resources (people, money).
- Coordinating – aligning activities of departments.
- Commanding (leading) – instructing and motivating staff.
- Controlling – monitoring performance vs targets.
Delegation
- Giving authority to subordinates while retaining responsibility.
- Advantages: motivates employees, reduces manager’s workload.
- Balance: too much control = demotivation, too much trust = risk.
2.2.3 Leadership Styles
| Style | Features | When Effective | Example |
|---|---|---|---|
| Autocratic | Leader makes all decisions, no consultation | Quick decisions, unskilled workers | Military, factories |
| Democratic | Involves employees in decision-making | Motivated workforce, skilled staff | Tech companies |
| Laissez-faire | Minimal leader input, staff self-manage | Creative industries, R&D | Advertising firms |
Choosing style:
- Autocratic for urgent deadlines.
- Democratic for teamwork and innovation.
- Laissez-faire for highly skilled, independent employees.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
2.2.4 Trade Unions
- Definition: Organisation of workers joining together to protect their rights & improve conditions.
- Functions:
- Negotiate better pay & working conditions (collective bargaining).
- Protect workers against unfair treatment.
- Provide legal advice/support.
- Effects of membership:
- Stronger employee voice.
- Can lead to strikes if agreements fail.
- Employers may face higher labour costs.
Quick Recap Keywords
- Hierarchy = levels of authority.
- Span of control = number managed.
- Management functions = planning, organising, coordinating, commanding, controlling.
- Delegation = giving authority.
- Leadership styles = autocratic, democratic, laissez-faire.
- Trade union = group protecting workers’ rights.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course