Business at work — страница 11

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structure on a regular basis to take account of any changes in the business environment. A formal organisational chart helps the company to identify where changes need to be made and to decide the relationship between any new sections or departments and the rest of the organisation. Business also produce organisational charts because they allow a company to review its structure and to identify areas where cost saving changes and improvements can be made. Organisational charts are useful when changes take place in the company. It can be updated to take account of any informal developments in its structure that have been good for the company. A revised organisational chart is particularly useful for informing people about the new structure of the company after mergers or

take-overs. The organisational chart can also be used during an induction period to give new employees a useful overview of the company and their own position within the structure in terms of their authority and the managers to whom they are responsible. Although an organisational chart has several uses, it should not be taken as giving an exact description of how the organisation actually operates. It does not give the exact nature of job responsibilities or indicate what levels of cooperation may be necessary between departments. Managing director Human resource director Marketing director Production director Finance director Research and development director Production manager Quality control manager Plant manager Assistant plant manager Production control manager Supervisor:

materials Supervisor: materials Supervisor: electrical Supervisor: mechanical Supervisor: buildings Section manager Section manager Section manager Supervisor Supervisor Supervisor Supervisor Supervisor Supervisor Operatives Operatives Operatives Operatives Operatives Operatives Function 1.7: Line authority in a production department. Chain of command - is the line of command flowing down from the top to the bottom of an organisation. It passes down the management hierarchy, from director and senior management levels to those in middle and junior management positions and eventually to employees in supervisory jobs who, for example may have authority over assembly line workers or staff providing services to the organisation’s customers. Organisations with a long chain of command

- with a hierarchy made up of many levels of management - are said to have tall organisational structures. Span of control - refers to the number of subordinates a manager is responsible for and has authority over. Organisations with a long chain of command will tend to have narrow spans of control. Organisations with a short chain of command tend to have wider spans of control. This produces a flat organisational structure because it has a hierarchy with fewer levels of management. Flat organisational structures: are generally desirable, there is a limit to the number of subordinates who can be placed under one superior. Even very experienced managers who have the qualities and personalities that promote loyalty and hard work can only be responsible for so many employees. Tall

organisational structure : some organisations have many levels and grades of staff with a tree-like management structure and strong patterns of vertical communication. This means that there are many different grades of staff between people lower down the organisation and the person at the top. Tall organisations suffer from problems with bureaucracy, as information needs to be directed through the correct channels before appropriate action is taken. The main features of such a structure are as follows: At each level there are several staff responsible to a person at the next level up. The process is repeated until the top of the organisation is reached. In a limited company the person at the top is the Managing Director who is ultimately responsible for the whole organisation. As

the levels within the organisation are ascended, the number of people at each level decreases and this gives the organisation a pyramidal structure. In an organisation with flat structure there are fewer levels or grades of staff and much more emphasis on communication across the organisation. This is more likely to be the structure of a small business where everyone knows each other and works together more as a team. In some situations, however, a relatively wide span of control may be acceptable if: The potential disadvantages of a wide span are outweighed by the costs of employing the extra managers needed to produce narrower spans of control. Junior employees are engaged mainly in routine work and as a result the manager is required to make relatively few decisions. Managers