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Business note for Unit 7: Organization and management

Advantages of an Organization chart

It shows how everybody is linked together in the organization. All

employees are aware of which communication channel is used to reach
them with messages and instructions.
Employees can see their position. Identify who they are accountable
and who they have authority over. They also can see who they should
take orders from.
Shows the link and relationship between different departments.
Give a sense of belonging.

Chain of command and span of control

Advantages of short chains of command:

Quicker and more accurate communication

Top managers are less remote from the lower level of hierarchy. They
should be more in touch with the people below them as there are fewer
level of management.
Span of control will be wider = each manager is responsible for more
subordinates. This will:
o Encourage managers to delegate more
o Less direct control of each worker and they will feel more trusted
o Be able to take more decisions and obtain more job satisfaction.
o With more people to be directly responsible for, managers could
lose control of the subordinates.

The role of management:

1. Planning:

Involves: setting aims or targets which will give the organization a

sense of direction or purpose, planning for the resources which will be
2. Organizing:
Delegate tasks to others and organize all the resources effectively
3. Coordinating:
Means bringing together
Make sure all departments in the organization work closely
together to achieve the aims of the business.
Needs good communication and regular meeting between
4. Commanding:
Guiding, leading and supervising people
Make sure all supervisors and workers are keeping to targets and
5. Controlling:
Measure and evaluate the work of every individuals and groups
to make sure they are on target
Find out why targets are not being met and then to correct to
Without clear and effective management, a business is going to lack:
A sense of control and direction
Coordination between departments, leading to wastage of effort
Control of employees
Organization of resources, leading to low output and sales
Advantages for managers
They can give some of their work to their employees
Less likely to make mistakes if some of the tasks are being performed
by their subordinates
Manager can measure the success of their staff easily
Advantages for subordinates
Work become more interesting and rewarding
Feel more important
Helps to train workers and they can make progress in the organization,
gives them career opportunities

Autocratic leadership
Where the manager expects to be in charge of the business and to
have their orders followed
Keep themselves from other employees
Make virtually all the decisions and keep information
Communication is mainly one way
Workers have little or no opportunity to comment on anything
Democratic leadership
Get other employees involved in the decision- making process
Information about future plans will be openly discussed
Two- way communication
Laissez- faire leadership
Leave to do
Make broad objectives, employees are left to make their own decisions
and organize their own work
Communication is difficult due to unclear direction
Leader has limited role to play
Trade unions
Strength in numbers
Improved conditions of employment
Improved environment where people work
Improved benefits for members who are not working (sick, retired or be
made redundant)
Improved job satisfaction by encouraging training
Advice/ financial support to workers who are unfairly treated
Discounts in shops/ clubs
Put their views to media and influence government decisions,
minimum wage legislation and employment laws
Improve communications between workers and management
Costs money to be a member
May be required to take industrial action