Organisation of Departments

ORGANISATION CHARTS
An Organisation Chart is used to show the structure of an
organisation.

Mr Lyons
Head Teacher

Mr MacLellan
Head of Department

Mr Murray
Teacher

Mrs Collins
Teacher

Mrs Lang
Teacher

Miss Wingate
Teacher

What Does An Organisation Chart Show?

The management structure and main departments within

an organisation
The relationship between departments
The span of control of each employee (the number of
people a person has responsibility for)

Who Would Use An Organisation Chart?

Visitors to the organisation

New members of staff
Receptionist

ADVANTAGES OF ORGANISATION CHARTS

Customers or visitors to a firm can gain an
immediate impression of the overall size of an
organisation
Employees can see at a glance who reports to who
Employees can see who they are responsible for
Useful for new employees to get a feeling for the
whole business
DISADVANTAGES OF ORGANISATION CHARTS
Information in an organisation chart will be out of
date if employees leave the firm or new employees
join.

What does an organisation chart show?

An organisation chart shows the positions
of employees within the organisation their names, room
number, telephone extension number etc
It also shows:
LEVELS OF RESPONSIBILITY
LINES OF COMMUNICATION
LINE RELATIONSHIPS
LATERAL RELATIONSHIPS

LEVELS OF RESPONSIBILITY
Those members of staff who carry out similar activities in the organisation
SENIOR MANAGEMENT

MIDDLE MANAGEMENT

JUNIOR MANAGEMENT

SUPERVISORS, SENIOR
ASSISTANTS

LOWER LEVEL EMPLOYEES

The chain of command shown is:

LINES OF COMMUNICATION
Organisations must communicate
information efficiently and effectively
in order for it to survive and grow
If there are many levels within the
organisation there is more chance of
communication breaking down as
information is handled by more people

Mr Lyons

Mrs Hughes

Mr Hamilton

Mr MacLellan

LINES OF RESPONSIBILITY
These show people in the organisation
who are in charge of the work of other
members of staff.
Line Relationships
These exist between line managers and
the staff immediately below them.
Members of staff are accountable to
their line manager for any actions
decisions they take.
Line relationships are shown by
VERTICAL lines on an organisation
chart.

The Head Teacher is in charge of the

work carried out by both the Deputy
Heads and the Department Heads.
Mr Lyons
Head Teacher

Mr Hamilton
Deputy Head

Mr Maclellan
Head of department

LATERAL RELATIONSHIPS
These exist between employees who are on the same level and who
report to the same line manager.
The employees CANNOT give instructions to each other.
Lateral relationships are shown by HORIZONTAL lines on an
organisation chart.
Managing Director

Sales Manager

Finance Manager

Personnel Manager

A lateral relationship exists between the Sales Manager, the Finance Manager and the
Personnel Manager. They are all on the same level of responsibility, they all report to
the same manager and neither can give the others orders.

Organisational Structure

There are 2 main types of organisational structure

TALL ORGANISATIONS
Many levels of management
Managers have narrow span of control

FLAT ORGANISATIONS
Few levels of management
Managers have wider span of control

Examples of Tall Organisations

Police Force
Army
School

Advantages
Easier to supervise
More opportunity for promotion
Employees more likely to know
their immediate boss

Disadvantages
Can be longer to communicate
information throughout the business
The management structure may be
costly due to many highly paid jobs
Employees may not have a chance
to
suggest ideas or show
initiative

Examples of Flat Organisations

Small Shops eg Newsagent, Chip Shop
Small Offices
Farms
Advantages
Employees have more
responsibility
More efficient communication
Employees more likely to be
involved in decision making
process

Disadvantages
Employees may become more
stressed due to increased workload
Fewer opportunities for promotion to
management posts

Changing the organisational structure

Organisations are unlikely to remain the same year after year. The
business may be growing in size or it may have to reduce its operations.

METHODS OF RESTRUCTURING
Growth the organisation is becoming larger. More staff are

employed by the organisation. New departments may need to

be created.

Downsizing the organisation has to make cut backs without

reducing output some staff may be made redundant, others
will find themselves with increased responsibilities.

Delayering the organisation removes certain levels of

management. This results in managers having wider spans of

control and the organisation having a flatter structure

What are the benefits and problems of restructuring?

Possible Benefits
Reduction in costs
To become more efficient
To improve communication
within the organisation

Possible problems
Low staff morale
Staff may be resistant to change
Costs of restructuring
Customers may be unfamiliar
with the new structure