2.1.4 Control responsibility
2.1.6 Internal organization
•Organisational Structure – The levels of management and responsibility in an organization.
•Job Description – A document outlining the responsibilities and duties which must be carried out by a person in a certain position.
•Delegation – involves granting a subordinate the responsibility to do certain tasks
-The final responsibility of the task is NOT delegatedl; the manager is still responsible for the task's completion. If the sub fails, the manager will receive the blame.
Advantages of delegation (MANAGER)
-Lets others perform minor tasks, giving managers time to preform more important duties
-Managers can determine how efficient their staff are by how well they preform
-Managers can spend more time on perfecting vital tasks if some of their jobs are being done by their subordinates
Advantages of delegation (WORKER)
-Work is more interesting/rewarding, increasing job satisfaction
-Employee feels more important due to trust of management (self actualization)
-Delegation trains workers: They can make progress in the business and career opportunities
Disadvantages of delegation (MANAGER)
-Mangers are still responsible for everything (including employees' failure)
-If the subordinates are more efficient that the manager, the manager may feel
•Organisation Charts
Features of an organisation chart
- Hierarchy = there are different levels in organisation
- Organized into Departments = each department has a particular job
- There is a Chain of Command (there is a definition below)
Advantages of the chart
1.All employees know through which media they can communicate
2.Employees can identify who they should get orders from by looking at the chart
3.Shows how different departments are interrelated
4.Increases morale amongst employees
Example
•Line managers – Directly responsible for workers, they make decisions regarding their department
Examples: admin/finance manager, engineering manager, sales and after market managers
The span of control denotes the number of employees who answer to a line manager
•Staff managers – Oversees the line manager
•Chain of Command – The hierarchy of the workplace
If organisation chart has
-a tall structure / long chain of command = has a narrow span of control
-a wide structure / short chain of command = has a wider span of control
Advantages of short chain of command
-communication is quicker and accurate
-the managers can communicate more quickly with workers
-manager is responsible for more little guys = encourage big guy to delegate more
-less control, feel more trusted and they get to make more decisions
If has wider span of control big guys could lose control of little guys
•Span of Control – number of workers working directly for a manager
•Decentralisation/Decentralised – some decisions are made by workers
There are 4 types of decentralisation
1. Functional decentralization - when specialist departments are delegated
2. Federal decentralisation - the authority is divided into different product lines
ex)a candy store can separate by chocolate section, candy section and a jelly section
3. Regional decentralisation - has bases in different country (multinational company)
4. By Project teams - particular task for each group
Advantages of a decentralised management structure
-decisions are taken by experienced managers -feel more trusted
-decisions are made more quickly
•Centralised – most decisions are made by bthe head manager
