Year 12 Business BTEC Extended
Company President
Vice President
Assistant Vice President
Senior Manager
Middle Manger
Junior Manager
Supervisors
Employees
Senior Manager
Middle Manger
Junior Manager
Supervisors
Employees
Assistant Vice President
Senior Manager
Middle Manger
Junior Manager
Supervisors
Employees
Senior Manager
Middle Manger
Junior Manager
Supervisors
Employees
Williams and Co. Furniture Ltd.
Organisational Structure
Mr. Barry
Year 12 Business BTEC Extended
FUNCTION
When an organisation is structured according to the different purposes of the business. For example sales – whose job it is to generate orders and sell products.
Mr. Barry
Year 12 Business BTEC Extended
TYPE OF CUSTOMER
When an organisation is structured according to the different customers. For example, a stationary supplies business might be divided into:
• Home – responsible for household stationary needs• Business – responsible for business stationary needs• Education – responsible for education stationary needs
Mr. Barry
Year 12 Business BTEC Extended
GEOGRAPHIC AREA
When an organisation is structured according to the geographic area it operates in and across. For example, the European division of a business would be responsible for all business activities in Europe.
Mr. Barry
Year 12 Business BTEC Extended
PRODUCT GROUP
When an organisation is structured according to the products and/or services it produces or sells. For example, Apple is divided into the iPod division, iPad division, Mac division and iTunes division.
Mr. Barry
Year 12 Business BTEC Extended
Centralised or decentralised?
• The decision will be based on the following factors: -– The size of the organisation– The scale/ importance of the decision– The level of risk– The corporate culture– Management attitudes and competencies– The use of ICT
Mr. Barry
Year 12 Business BTEC Extended
Centralisation and decentralisation
• Decision-making power can be either kept in the hands of a few people or it may be spread out among the workforce.
• The extent that decision-making is spread out amongst the workforce will depend on the characteristics and skills of managers and workers, the degree of trust and the corporate culture.
Mr. Barry
Year 12 Business BTEC Extended
Centralised Structures• In centralised structures the vast majority of
decisions are made by a very small number of people.
• All decision are made by the person in the centre, without any form of communication between other members of the organisation.
Mr. Barry
Year 12 Business BTEC Extended
Centralised Structures DecisionMaker
Advantages Disadvantages
Rapid decision makingBetter controlBetter sense of directioncan benefit from the decision making of experienced senior managers.
Possible delaysIncreased pressure and stress for the decision-makerInflexibilityDe-motivating for staff
Mr. Barry
Year 12 Business BTEC Extended
Decentralised Control
• Some decision making authority and responsibility is passed on to others in the organisation. E.g. some departments or regional offices may be empowered to make decisions on behalf of the organisation. Key decisions are made centrally.
Mr. Barry
Year 12 Business BTEC Extended
Decentralised StructuresAdvantages Disadvantages
Input from workforceAllows better delegation of responsibilitySpecialist people with the correct skills can be hired Speedier day-to-day decision makingHigher moraleImproved accountabilityEncourages teamwork
Direct control of the owner is reducedOwner may not know the strengths and weaknesses of each workerGreater chance of mistakesGreater reliance on effective communicationDuplication
Mr. Barry
Year 12 Business BTEC Extended
Business Functions
• Human Resources• Sales and Marketing• Research and Development • Production/Operations• Customer Service• Finance and Accounts• Administration and IT• Distribution
Mr. Barry
Year 12 Business BTEC Extended
Human Resources
• Recruitment and retention– Job descriptions– Person Specifications
• Dismissal• Redundancy• Motivation• Professional development and training• Health and safety and conditions
at work• Liaison with trade unions
Mr. Barry
Year 12 Business BTEC Extended
Sales and Marketing
• Market research• Promotion strategies• Pricing strategies• Sales strategies• The sales team• Product – advice on new product development,
product improvement, extension strategies, target markets
Mr. Barry
Year 12 Business BTEC Extended
Research and Development
• New product development• Product improvements• Competitive advantage• Value added• Product testing• Efficiency gains• Cost savings
Mr. Barry
Year 12 Business BTEC Extended
Finance and Accounts
• Cash flow– Monitoring income/revenue– Monitoring expenditure
• Preparing accounts• Raising finance
– Shares – Loans
• Links with all other functional areas
Mr. Barry
Year 12 Business BTEC Extended
Production/Operations
• Acquiring resources• Planning output – labour, capital, land• Monitoring costs• Projections on future output• Production methods
– Batch– Flow– Job – Cell
• Efficiency
Mr. Barry
Year 12 Business BTEC Extended
Customer Service
• Monitoring distribution• After-sales service• Handling consumer enquiries• Offering advice to consumers• Dealing with customer complaints• Publicity and public relations
Mr. Barry
Year 12 Business BTEC Extended
Administration and IT•Managing estates – this means the cleaning, health and safety, maintenance, security
•Reception
•Clerical work – filing, reporting, recording, record keeping, communication
•Overview of quality control
•Use of IT systems
•Administration is the functional area that supports all the others in what they do.
Mr. Barry