Organisation and Management
What is Organisation Structure?
It is defined as the different levels of management and division of responsibility within an organisation.
What is an organisational chart?
It is a diagram that outlines the different levels of managerial structure.
| Advantages | Disadvantages |
| Guidance for new employees | No information channels |
| Better planning |
What is Hierarchy?
It refers to the different levels of management, ranging from lower-level management to higher-level management.
The different levels of hierarchy
It refers to the management or employees who are given similar responsibilities within an organisation.
What is Chain of Command?
It is a structure in an organisation which allows instructions to be passed from higher management to lower level management.
| Advantages of a Short Chain of Command | Advantages of a Long chain of command |
| Faster communication | Improve productivity |
| Better relationships between managers and employees | |
| Disadvantages | Disadvantages |
| If the subordinates are poorly trained, they might make a lot of mistakes. | High bureaucracy |
Roles and responsibilities in an organisation
- Directors- It refers to individuals who are in charge of a particular department
- Line Managers – It refers to those who have direct authority over subordinates
- Staff Managers – They are specialists who provide support, assistance to the line managers
Functions of managers
- Plan – They should set objectives and targets for the future
- Lead – They should be surprised and guided to ensure that the planning is being achieved
- Organising – They should delegate their responsibilities to subordinates
- Controlling – They should measure and evaluate if the targets and objectives set are being achieved
- Commanding – They should develop team spirit among workers in different departments to achieve the planning
Delegation
It refers to the process of assigning authority to others of the authority for particular functions, tasks, and decisions
| Advantages | Disadvantages |
| More time | Lack authority |
| Builds team-spirit | Lack of interest |
Leadership styles
It refers to the different approaches to dealing with people when a manager is in a position of authority.
| Autocratic Leadership | Democratic Leadership | Laissez-Faire Leadership |
| – Orders must be strictly followed, and decisions are kept secret – It favours one-way communication | – Employees are involved in the decision-making process, and there is no transparency | Employees make their own decisions, and there is no effective communication |
| Advantages | Advantages | Advantages |
| Clear Chain of Command | It builds strong teams | Independence is valued |
| Quick decisions are taken | It fits almost every business | Group members are expected |
| Disadvantages | Disadvantages | Disadvantages |
| Discourages group input | Time-confusing | Low accountability |
| Impair Morale | Long decision-making process | Low involvement |
Trade unions
It refers to an association of workers who have grouped together to protect their rights and interests in an organisation