‘Watchout for the fellow who talks about putting things in

order! Putting things in order always means getting other people under your control.’

Denis Diderot (1713 – 1784)

Thought for the day:

Get an A

Knowledge

Application & Analysis

Evaluation

A

Grade

Understand

Define, Identify, Complete, Outline, describe, Classify

Compare, Contrast, distinguish, prepare, construct, calculate, explain, comment

Apply, Examine, Analyse, Interpret, Formulate.

To what extent, Evaluate, discuss, justify, advise, recommend.Level 4

Level 3

Level 2

Level 1

Target Learning Objective Who? Keywords

To construct different types of organization chart and describe the nature of their structure, for example, flat, tall.

Explain how organizational structures affect employee motivation, communication and performance (HL).

Identify why firms need to organize employees in particular ways, for example, by function and geography.

ALL

Level 1 AccountabilityDe/CentralisationChain of commandDelayeringDelegationOffshoringOutsourcingOrganisational chartResponsibilitySpan of control

Analyse changes in organizational structures and their effects.

Discuss factors influencing the degree of centralization and decentralization (HL).

Discuss the development of more flexible organizational structures. Apply the theories of writers such as Mintzberg and Peters (HL).

Analyse methods of organizing human resources that are used by organizations.

Analyse the reasons and evaluate the benefits from outsourcing, offshoring human resource to external organisations located nationally or globally.

MOST

Level 2

Evaluate the role and importance of the informal organization (HL).

Evaluate whether firms will befit from outsourcing, off shoring and the migration of human resource functions.

SOME

Level 3 & 4

2.2 Pre-read Chapter

What is the difference between

Accountability

&

Responsibility?

Organisation Charts

All business have an internal structure – the way human resources are organised. This is known as the formal organisation of the business. It takes into account:

•The relationship between individuals

•Who is in charge

•Who has the authority to make decisions

•Who carries out decisions

•How information is communicated

School Organisation

Chart

Organisation Charts

• Organisational charts are used to illustrate the structure of the business.

Structure and Hierarchy• .. Are shown by an organisational

chart• Traditional business have a series of

levels, where each level has a responsibility and authority over level below them. This is called a hierarchy.

• An organisational chart sets out who has authority to make decisions and the responsibility for making them.

Structure and Hierarchy

• It shows who individuals are accountable to – who is directly above them in the hierarchy.

• The chart also shows how the organisation is divided up. It can be divided by function (department), product or geographical area.

Organisation Charts

Why do business draw such charts:• To spot communication problems.• Help individuals see their position in a

business• Pinpoint areas where specialists are needed• Show how different sections of the firm relate

together

Why have a chart?

Structures can be ‘tall’ or ‘flat’

• Organisations that has lots of levels in their hierarchy are called ‘tall’. They have a large number of people between the ‘top’ and the ‘bottom’.

• Tall structures have a long ‘chain of command’

Levels of Hierarchy

• Ranking system• What are the advantages and disadvantages

of hierarchy structure?Pg 109

Chain of command

The HIERARCHY in a business is the order or levels of management in a business from the lowest to the highest rank. It shows the CHAIN OF COMMAND within the organisation – the way the authority is organised. Orders passed down the levels the information passed up.The chain of command is the communication and authority up and down the hierarchy.

Structures can be ‘tall’ or ‘flat’

• If the structure is too tall, it affect communication.

• Messages take a long time to get from one end of the chain of command to the other, and they can get distorted along the way.

• Decision take a long time to make.• And.. There is a lot of paper work.

Structures can be ‘tall’ or ‘flat’

• ‘Flat’ organisations only have a few levels in the hierarchy.

• If the structure is too flat, then managers can get overwhelmed by too many people reporting to them.

Delayering

• - is when a business removes a layer of the hierarchy from its organisational structure – usually managers in the middle

• Delayering helps lowering costs.• After delayering the structure becomes flatter with a

broader span of control. (don’t over do it it could stress managers out)

• Delayering can give employees enhanced roles with more responsibility

• Some business use delayering as an excuse to cut jobs.• Pg 213 – 214 Hoang

Span of control

This refers to the number of subordinates working under a superior or manager.

A narrow span of control has the advantage of a firm of close supervision, better coordination of activities, better communication – monitor more closely

A wide span of control allows independent decision making. – hard to manage effectively

Broad (wide) vs Narrow span of control

• Too narrow – staff become de-motivated – being over-managed

• Too broad – hard to manage effectively.

Construct an organisation chart of AIS.Identify:Chain of commandSpan of controlDelegationresponsibility

Activity

Job RolesInvestigate:The key responsibility of the following person –

• CEO/Chair Person• Board of Directors (BoD)• Management• Supervisors & team leaders• Other employees (operatives)

Activity

Delegation & Accountability

DelegateWhat is it?Why do it?What are the problems with doing it?

Pg 111

Higher Level

Channel of communication

Purpose of communication in Business: Communication is essential to the achievement of business objectives.

• This is because the basic purpose of any communication is to influence the actions of others.

• Effective communication is therefore an essential aspect of management

Purpose of communication in Business:

• Goals must be established for the organisation and then communicated to objectives

• Communication is vital to the development of plans• Communication is also essential in the organisation of both

human and non-human resources• Leading, directing and motivating inevitably require

communication skills• The control function cannot be effective without the

communication of accurate and up-to-date data

Different types of communication: Direction

Recap:• Chain of command• Span of Control

Classification of communication: Direction

Vertical and Lateral• Vertical: Up and down the organisation• Lateral: Communication across the

organisational

Communication by direction

• Downward – giving orders, instructions, communicating objectives

• Upward – reporting back, expressing views

• Horizontal – co-ordinating, problem solving

Classification of communication: Formality

• Formal and Informal • Formal – Using channels of communication• Informal– Channels established by the

employees themselves (passes information quickly but usually distorted).

Direction

• Where there is no facility for a reply (feedback), it is called one-way communication

• Feedback built into two-way communication is a feature of a democratic leadership style

Sender

Sender Receiver

Receiver

Feedback

• Sender receives feedback e.g manager discusses an issue with an employee at a meeting.

• This is slower than one way but sender gains more information.

Sender Receiver

Why is the facility for feedback important?

• Feedback ensures message is fully understood• Feedback enables subordinates to contribute

to the process of decision making

Different structures - Investigate:

• Organisation by Product• Organisation by Process• Organisation by Geography

Activity

Factors influencing structures

• Pg 111

Summary

• Why do organisations need formal structure?• What are the benefits of having a hierarchal

structure?• What are the drawbacks of having a hierarchal

structure?• What is meant by ‘a wide span of control?’• What does ‘tall’ and ‘flat’ mean in relation to

organizational structures?

Bureaucracy

• Pg 215

Higher Level

Centralised and Decentralised

Pg 216 - 217

• Centralisation and decentralisation refer to the extent to which authority is delegated in a business.

• If there was complete centralisation, then subordinates would have no authority at all.

• Complete decentralisation would mean subordinates would have all the authority to take decisions.

Higher Level

• Advantages • Disadvantages

Centralised

• Advantages • Disadvantages

Decentralised

Question on which to become would depend on – • Size• Scale• Level of Risk• Corporate culture• Management attiudtes and compentecies• The use of ICTPg 218

Centralised and Decentralised

Matrix structure/Project Teams/Flexible Structure/The informalHigher Level

Mintzberg/Peters

• Clarke 105 - 107

Outsourcing, off shoring and the migration of HR

Pg 223- 225

Outsourcing – the act of finding external people or businesses to carry out non-core functions of a business, such as cleaning or ICT maintenances.

Offshoring – a form of outsourcing that involves relocating buisness functions and processes to another country

Migration refers to the international movement of labour

Higher Level

TOK

To what extent can great military leaders of the past guide chief executives officers who are shaping the structure of their organisation?

PlenaryLevel achieved_____

What do you now know as a result of today’s lesson?

What are your areas for improvement? What are you going to do about this?