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Chapter 2 Overview
Internal environment of large-scale organisations
Understand the role of management in
ensuring that the internal environment of an organisation enables it to meet its objectives
This includes creating and maintaining a positive corporate culture and managing the organisation ethically and with social responsibility
Learning Objectives
Internal environment includes the factors
inside an organisation that has a direct impact on its performance such as organisational structure, policies, corporate culture, the role of management and the performance of all staff. (page 45)
Organisational (or management) structure refers to the way an organisation formally arranges its staff and resources so that it can achieve its objectives. Most organisations will display their management structure in an organisational chart. (page 46)
Key Terms
Organisational chart shows the key
positions of responsibility and accountability, and how information is communicated within the organisation
Key Terms
The Pyramid on page 46 shows a traditional
management hierarchy It consists of different management levels,
and shows the job titles/positions and responsibilities associated with each management level
Hierarchical management
structure
There is greater authority, responsibility and
accountability at the higher levels of the structure
So senior managers have the most power and responsibility and lower level managers have less
There are many levels of management Communication flows from top to bottom, with
little flexibility Positions, roles and responsibilities are clear
and identifiable
Features of traditional management
structures
Chain of command or line authority shows
who is directly responsible to whom. Under the principle of unity of command, each employee takes orders from one supervisor only
Advantage: only one person is ultimately in charge – this makes it clear and reduces confusion
Span of control the number of employees a manager is directly responsible for
Key features of a management
hierarchy
The process of setting objectives
and deciding the methods used to achieve them
This is the PRIMARY ROLE OF MANAGEMENT
There are different levels of Planning
Management roles: PLANNING
Long-term Usually 3-5 years Helps determine where the organisation wants
to be within the market and what it wants to achieve in relation to its competitors
Strategic Planning
Medium-term Usually 1-2 years This is flexible, adaptable planning and
therefore allows the organisation to respond quickly to change
It helps to implement the strategic plan
Tactical Planning
Short-term Usually day-to-day Provides specific details of how the
organisation will operate, e.g. daily and weekly production schedules
Operational Planning
SWOT