Transcript The management of people within a business

The management of people
within a business
Internal Organisation
How & why business organise themselves
Internal organisation tells us how the business is structured for
decision making and communication.
Head teacher
Deputy Head
Pastoral leader
Form tutor
Deputy Head
Head of
department
Subject teacher
Why Organise?
What would happen if nobody organised anything at school?
Formal or Informal
Formal organisation states what jobs people have, what responsibilities
and how much power & authority. It states the channels of
communication
Head teacher
Deputy Head
Pastoral leader
Form tutor
Is this formal or informal?
Deputy Head
Head of
department
Subject teacher
Formal or Informal
The informal structure is based on social groupings:
http://www.youtube.com/watch?v=dp8LC5nAzcs
http://www.youtube.com/watch?v=rNcZyO-Nb5E
Informal groupings
Common interest
groups
Semi-formal groups
Friendship groups
Hierarchy Pyramid
Delegation
If the head teacher wanted a new display-board, they would tell the
deputy head who would tell the head of department, who would tell the
subject teacher.
Delegation
Passing authority down to lower levels is called delegation
Requests or
complaints
Orders or
Instructions
Span of control
The span of control refers to the number of people over whom a person has
direct authority. There are two types:
•Narrow span of control
•Wide span of control
Head of
department
Head teacher
Centralised or Decentralised
Centralised or Decentralised?
In a centralised organisation, everything is controlled by
one person.
In a decentralised organisation, people are responsible
for their own actions, and have increased responsibility.
Organisational Charts
1) The hierarchical pyramid
2) The family tree
3) The circular organisation
How do you structure?
Division by function
This is when a firm is divided up by
the jobs people do. (Sales / Finance /
HR / Production)
Division by geography
This is when the firm is divided up by
geographical area. (Europe / America
/ Asia / Africa)
Division by product
This is when the firm is divided up by
the type of product being made.
(Ford  Fiesta / KA / Mondeo /
Galaxy / Escort)
6 KEY POINTS
1. Good organisation is essential to the smooth _____________ of the company
2. Both __________ and informal structures will exist in the firm
3. A ______________ pyramid is a structure which is narrow at the top and wide at
the bottom
4. A hierarchical pyramid has a clear chain of __________ and channels for ________
5. Firms can be organised centrally of __________
6. Drawing organisational _________ helps to understand organisation structures
charts / running / hierarchical / communication / formal / command /
de-centrally