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Chapter 7: Organisation and management (Why is it important to have good…
Chapter 7: Organisation and management
Organisational structure
: refers to the levels of management and division of responsibilities within an organisation.
Chain of command
: is the structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
Advantages of an organisation chart:
-The chart shows how everybody is linked together in the organisation. All employees are aware of which communication channel is used to reach them with messages and instructions.
-Every individual can see their own position in the organisation. They can identify who they are accountable to and who they have authority over. Employees can see who they should take orders from.
-It shows the links and relationship between different departments within the organisation.
-Everyone is in a department and this gives them a sense of belonging.
The
span of control
is the number of subordinates working directly under a manager.
Line managers
: have direct responsibility over people below them in the hierarchy of an organisation.
Staff managers
: are specialities who provide support, information and assistance to line managers.
Delegation
: means giving a subordinate the authority to perform particular tasks.
Advantages of delegation for the manager:
-Managers cannot do every job themselves. As we have seen, it was becoming very difficult for Bill to control all of the running of Cosy Corner by himself.
-Managers are less likely to make mistakes if some of the tasks are being performed by their subordinates.
-Managers can measure the success of their staff more easily. They can see how well they have done in performing the tasks delegated to them.
Leadership styles
: are the different approaches to dealing with people when in a position of authority - autocratic, laissez-faire or democratic.
Why is it important to have good managers?
-To motivate employees
-To give guidance and advice to employees they manage.
-To inspire employees they manage to achieve more than they thought possible.
-To keep costs under control.
-To increase profitability of the business.
Autocratic leadership
: is where the manager expects to be in charge of the business and to have their orders followed.
Democratic leadership
: gets other employees involved in the decision-making process.
Laissez-faire
: makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work.
A
trade union
is group of workers who have joined together to ensure their interests are protected.
Closed shop
: all must be a member of the same trade union.