1. Unit 1a Organisation of Departments

2. Learning Outcomes

Introduction to Organisations

Introduction to Organisation Charts

Caledonian Health & Fitness Organisation Chart

Lines of Responsibility

Lines of Authority

Lines of Communication

Relationships within an Organisation

The Chain of Command

Benefits and Costs of an Organisation Chart

Types of Organisational Structure

Change of Organisational Structure

3. In order for a business to SURVIVE it must be: ORGANISED and have GOOD COMMUNICATIONS This will enable it to GROW and become more successful 4. What is anOrganisation Chart?

An organisation chart isused to provide apicture of who is inthe business.

It is used to show theSTRUCTUREof the business.

5. What Information do Organisation Charts Show?

Organisation charts are used to show the following:

• Lines ofRESPONSIBILITY(who you will look after; be responsible for)

• Lines ofAUTHORITY(the way in which instructions are passed down)

• Lines ofCOMMUNICATION(the way in which information is passed throughout the organisation)

6. Caledonian Health & Fitness 12 Mr Burns Managing Director Mr B Wallace Personnel Manager Mrs A MacDonald Sales/ Marketing Manager Miss J Montrose Purchases Manager Mr H Nichols Buyer Mrs L McKenna Finance Manager Mr N Millar Admin Manager Mr Ray Cruit Recruitment Officer Miss T Raynor Training Officer Mrs R Ambleon Marketing Assistant Mr V Smart Sales Rep Mr B Goodman Wages Officer Miss H Munro Admin Assistant 7. Lines of Responsibility

Thelines of responsibilityshow WHO exactly is in charge of others.

The example above shows that Mrs MacDonald isin chargeof all the work that is carried out byboth Mrs Ambleon and Mr Smart

Mrs MacDonald is their LINE MANAGER

Mrs R Ambleon Marketing Assistant Mrs A MacDonald Sales/Marketing Manager Mr V Smart Sales Rep 8. Lines of Authority

In an organisation chart the lines of authority show us who gives instructions to others so that they carry out certain tasks

The person who gives you direct instructions is called your LINE MANAGER i.e the person who you report to

What was the first thing your teacher asked you to do when you entered the class today?(Sit down quietly?Get your resource book out quickly?Hand in your homework?) Your teacher gives you instructions to enable you to get ready to learn and to get the most out of the lesson. The example here shows that Mr Burns gives Mr Wallace instructions on how he wants the Personnel Department to operate Mr R Burns Managing Director Mr B Wallace Personnel Director 9. Lines of Communication

Mr Burns is considering buying new equipment for the gymnasiums and has asked Mr Nichols to find the best supplier.

Having carried out his research, Mr Nichols finds a new supplier offering amazing discounts.

Should Mr Nichols go ahead and order from the new supplier?

In order for information to be communicated effectively it is important that information flowsUPandDOWNthroughout the organisation. This is key to allowing good decision-making. In which direction should information flow? Mr H Nichols Buyer Miss J Montrose Purchases Manager Mr R Burns Managing Director 10. Copy Caledonian Health & Fitness Organisation Chart into your jotter and answer the following questions

List the people who work in the Sales/Marketing Department.

Who is Mr Nichols line manager?

Mrs Ambleon has been asked to design a leaflet to recruit new members.She is considering promoting a special offer however is unsure how much discount to give.Mrs A MacDonald is out at a meeting who should Mrs Ambleon report to?

Mr Burns recently purchased new software to enable customer records to be stored more efficiently however is aware that staff will need training.Who should Mr Burns speak to first regarding the training program? Who will be responsible for the training program? Justify your answer?

11. Solutions

List the people who work in the Sales/Marketing Department. Mrs A MacDonald; Mrs R Ambleon; and, Mr V Smart

Who is Mr Nichols line manager? Miss J Montrose, Purchases Manager

Mrs Ambleon has been asked to design a leaflet to recruit new members.She is considering promoting a special offer however is unsure how much discount to give.Mrs A MacDonald is out at a meeting who should Mrs Ambleon report to? Mr R Burns, Managing Director

Mr Burns recently purchased new software to enable customer records to be stored more efficiently however is aware that staff will need training.Who should Mr Burns speak to first regarding the training program? Mr B Wallace, Personnel Manager

Who will be responsible for the training program? Justify your answer? Mr R Cruit as he is responsible for delivering the training programs to all the members of staff and recording their level of progress

12. Relationships within Departments

LINE RELATIONSHIP

• Relationship between managersand the staff directly below them

LATERAL RELATIONSHIP

• Relationship between people on the same level who report to the same Line Manager

Identify the LINE and LATERAL relationships which exist atCaledonian Health & Fitness

13. Solutions

LINERELATIONSHIPS

• Mr Burns and Mr Wallace

• Mr Burns and Mrs MacDonald

• Mr Burns and Miss Montrose

• Mr Burns and Mrs McKenna

• Mr Burns and Mr Millar

• Mr Wallace and Mr Ray Cruit

• Mr Wallace and Miss T Raynor

• Mrs MacDonald and Mrs Ambleon

• Mrs MacDonald and Mr V Smart

• Miss Montrose and Mr Nichols

• Mrs McKenna and Mr Goodman

• Mr Millar and Miss Munro

LATERALRELATIONSHIPS

• Every Manager has a lateral relationship with one another

• Mr Ray Cruit and Miss T Raynor

• Mrs Ambleon and Mr Smart

14. What is the CHAIN OF COMMAND?

TheCHAIN OF COMMANDis the way in

which instructions are passed down through

each level in the organisation.

Mr Burns is unhappy with the current supplier of the Gym equipment as he feels the quality of theequipment is poor. WHO DOES MR BURNS CONTACT TO DISCUSS THIS ISSUE? Mr Burns informs Miss Montrose that a new supplier needs to be found WHO DOES MISS MONTROSE CONTACT TO DISCUSS THIS ISSUE? Miss Montrose explains to Mr Nichols that he must find a better supplier one which is reliable and offers high quality products Mr R Burns Managing Director Miss J Montrose Purchases Manager Mr H Nichols Buyer 15. Activities

Complete the followingtasks in your activities booklet:

• Question 1:What is an organisation chart?

• Question 2: The Power & Light Company

• Question 3: Identifying relationships in an organisation

• Question 4: Constructing an organisation chart

GROUP ACTIVITY

• Create an organisation chart of your Admin class! You could pick names out of a hat to decide roles and job titles.Who can come up with a creative name for your company?

16. Who would find an Organisation Chart useful?

VISITORSto the organisation (gives them an overall impression of the size and structure of the business and they are able to identify who they wish to see)

NEW MEMBERS OF STAFF(able to identify who they will be reporting to and working alongside)

RECEPTIONIST(useful in assisting visitors to the correct department etc)

As the new Administration Assistant I was pleased to be given a copy of the organisation chart as it helped me to learn the names of other colleagues and to know where to find them 17. Advantages & Disadvantages of using an Organisation Chart

Able to see the overall size ofthe organisation

Visitors can identify who it is they are going to meet with

Employees are able to see who they are going to be working with and reporting to

Can be very expensive to maintain if new employees join the business or if current employees leave, then a new chart needs to be created

There may not be enough information on the chart eg. Is there a phone extension number? Is there a photo of the employee? Is there a room number?

ADVANTAGES DISADVANTAGES 18. Activities

Complete thefollowing tasks in your activities booklet:

• Question 5: Word bank

• Question 6: identify features of an organisation chart

19. Types of Organisational Structures

There are two main types of organisational structures:

TALL FLAT FEW levels of management MANY levels of management 20. What is a TALL Structure?

A Tall structure hasmany levels of management.

There can be a feeling in this type of organisation that there are too many bosses!

Tends to be seen inlarger organisations eg. Civil Service;Hospitals; Universities;Armed Forces etc

21. A Tall Structure How many levels are in this structure? For those employees who work on level 8 there are manyopportunities for promotion. There are many lines of communication which means that before a decision can be made many people have to share their ideas.This can take a very long time. 1 2 3 4 5 6 7 8 22. What is a FLAT Structure?

A Flat structure hasfewer levels of management.

Employees are given GREATER RESPONSIBILITY as managers have to DELEGATE tasks to reduce their own workload.

Egs IBM; Virgin Group; RoyalBank of Scotland; etc

23. A Flat Structure

There are fewerlines of

Communicationwhich results in

DECISION-MAKING BEING

VERY FAST able to

respond to changes

quickly.

How many levels are in this structure? Employees feel morevalued and are moremotivated to work. 1 2 3 4 24. Change of Organisational Structure

Businesses may decide tochange their structure fora number of reasons:

• To GROW employ more staff; introduce new products/services etc

• To DOWNSIZE take away some of its activities

• To DELAYER get rid of a few levels of management in order to cut costs

• To OUTSOURCE this means asking other businesses to come in and do certain tasks for you because they are more skilled eg. School giving the canteen to an outside caterer to provide the meals.

25. Activities

Complete thefollowing tasks in your activities booklet:

• Question 7: Advantages and disadvantages of a Tall structure

• Question 8: Advantages and disadvantages of a Flat structure

• Question 9: Key terms

• Question 10: Effects of growth on an organisation chart