Organization and Management

Simple organizational structures

• An organizational structure refers to the levels of management and division of responsibilities within an organization.

Operations

• Responsible for making the product or providing the service.
• Examples include:
  • manufacturing
  • quality control.

Marketing

• Responsible for market research, advertising, pricing, and sales.

Finance

• Handles budgeting, cash flow tracking, invoicing, and preparing financial statements.

Human Resources (HR)

• Manages recruitment, selection, training, contracts, and workforce welfare.

Simple hierarchical structures

Tall and flat levels of hierarchy

• The levels of hierarchy are the number of layers of authority from the top manager down to the lowest worker.
  • Tall structures have many levels of hierarchy, a long chain of command, but a narrow span of control.
  • Flat structures have few levels of hierarchy, a short chain of command, but a wide span of control.

Chain of command

• The route or path through which orders and communication are passed down from senior management to lower-level workers.

Span of control

• The exact number of subordinates (workers) working directly under a single manager.

Different ways of flexible working

Home working

• Employees complete their tasks from their own residences, reducing office rent and utility costs for the firm and cuts commute stress for workers.

Flexible hours

• Allows staff to choose their start and end times as long as core hours are met, which improves employee work-life balance.

Part-time and full-time employees

• Part-time employment is often considered to be between 1 and 30-35 hours a week.
• Full-time employees will usually work 35 hours or more a week.

Functions of management

POCCC (Planning, Organizing, Coordinating, Commanding, Controlling)

1. Planning is to set clear goals for the future and deciding how to reach them.
2. Organizing is allocating resources, equipment, and tasks to the right departments or people.
3. Coordinating is ensuring all departments work smoothly together to avoid conflicting actions.
4. Commanding is to guide, instruct, and lead staff to ensure they get their daily work done.
5. Controlling is checking actual business performance against original targets and taking corrective action if things go wrong.

Delegation

• Delegation means giving a subordinate the authority to perform particular tasks.

Advantages for the manager

• Frees up their time to focus on strategic planning.
• Helps them identify which subordinates are ready for promotion.

Advantages for the subordinate

• Boosts motivation (satisfies esteem needs)
• Provides valuable hands-on training for future roles.

Disadvantages

• If the subordinate lacks skills, the task might be completed poorly, or they might feel overly stressed by the extra workload.

Leadership styles

• Leadership styles are the different approaches to dealing with people and making decisions when in a position of authority.
• The main leadership styles are:
  • autocratic
  • democratic
  • laissez-faire

Autocratic leadership

• Autocratic leadership is where the manager expects to be in charge of the business and to have their orders followed.
  • Best for: Crisis situations, fast-food kitchens, or managing unskilled workers where quick decisions are critical.
  • Drawback: Drastically lowers worker morale and creativity.

Democratic leadership

• Democratic leadership gets other employees involved in the decision-making process.
  • Best for: Highly skilled professionals where creative input improves the final output.
  • Drawbacks: Decision-making becomes much slower.

Laissez-faire leadership

• Laissez-faire leadership makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organize their own work.
  • Best for: Research labs or creative design studios with highly independent, self-motivated experts.
  • Drawback: Can lead to a complete lack of direction or coordination if the team lacks discipline.

Why reducing the size of a workforce may be necessary

Downsizing

• Downsizing is the deliberate process of reducing the total number of employees a business employs to cut operating costs and improve structural efficiency.
• Downsizing happens due to:
  • Automation: Replacing human labor with mechanical machinery or computerized automation systems to boost output speeds and cut long-term operational costs.
  • Reduced demand: Falling sales due to economic recession or shifting consumer tastes mean fewer workers are needed to handle output.
  • Need to lower costs: Facing fierce competitor prices forces a firm to cut its wage bill to protect profit margins.

Redundancy and dismissal

• Redundancy is when an employee is no longer needed and so loses their job. It is not due to any aspect of their work being unsatisfactory.
• Dismissal is when employment is ended against the will of the employee, usually for not working in accordance with the employment contract.

Role of trade unions

• A trade union is a group of employees who have joined to ensure their interests are protected.

Benefits

• Strength in numbers when negotiating wages and working hours with employers.
• Improved conditions of employment, such as rates of pay, holidays and working hrs.
• Improved environment and safety where people work, such as health & safety, noise, and heating.
• Legal protection, providing free legal advice and representation if an employee faces unfair dismissal or discrimination from management.
• Improved job satisfaction by encouraging training.
• More secure employment where there is a closed shop.
  • A closed shop is when all employees must be a member of the same trade union.