Name: 2 - People in Business 1

Chapter 7: Organisation and Management

Learning Objectives
1. To explore different organisational hierarchies
2. To identify the main duties of management and the main leadership styles
3. To analyse the benefits of trade union membership

Key Terms
Organisational structure: the levels of management and division of responsibilities in an organisation
Organisational chart: a visual representation of the organisational structure, showing who r……………… to whom.
L…… M……………….: a manager directly in charge of a worker (above their subordinates on an org. chart)
S……………….::a worker who reports to their line manager (below their line manager on an org. chart)
D……………….:giving authority for a task to a subordinate (e.g. when a manager gives responsibility to a worker)
S……. of control:the number of s………………. working directly under a manager
Chain of co………………..: the path of ……………….passed from senior management to workers

Starter Activity – Organisational Charts

Take your time and use a pencil when drawing the organisational chart below!

Draw the organisational chart for the Tool Hire business above:

Manager: Darren

Assistant manager: Anna

Organisational Charts
Features
• Employees are arranged in a …………………………..based on their role, responsibilities and
…………………………..with other employees.
• Employees are arranged by ………………………….., such as …………………………..…………………………..
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Advantages
• Employees are …………………………..in the organisation
• It gives a …………………………..
• Shows all relationships and …………………………..in the organisation
• Shows links between …………………………..

Chain of Command and Span of Control

Can you explain what the following statements mean?

• Business A has a ‘tall’ structure and a ‘long chain of command’
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..……………
• Business B has a ‘wider’ structure and a ‘short chain of command’
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..………………………………………

The levels of an organisation are called layers.

What is de-layering and why do businesses do it?

…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………………..…………………………..…………………………..…………………………..
…………………………..…………………
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Advantages of short chains of command
• Communication is ………..…………………………..…………………
• Management are ………..…………..…………with the people below them
• Spans of control will be …..……
• Managers will …..………..……
This is an advantage because …………..…………………………..…………………………..…………………………..……………
……………..…………………………..…………………………..…………………………..…………………………..…………………
Roles, Responsibilities and Inter-relationships
Line managers – These managers have direct responsibility over people below them in the hierarchy
Staff managers – These managers are specialists who provide support, information, and assistance to line
managers.

The role of management

What do
managers do?

1. ……………………………..
• A manager must set ……………….……………….……………….for the business and also for the workers.
• These give the business a ……………….……………….and purpose.
• A manager must also plan for the ……………….that will be needed.

2. ……………………………..
• A manager cannot do everything! Because of this, managers must organise……………….
……………….effectively.
• Making an organisational chart is very helpful to show ………………..
• The chart is also helpful so all workers know what they are supposed to do and you don’t have
……………….……………….
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3. ……………………………..
• This means ‘bringing together’
• This is very important because different departments in a company ……………….……………….……….
• A manager must make sure all of the departments work together and ………………..
• This can be done by having a ……………….with all of the department heads.

4. ……………………………..
 A manager must ……………….………………………..………….and also command people what to do.
 Managers must make sure the workers are ……………….……………….………………..
 Managers should share their …………………….to help the workers become more efficient.

5. ……………………………..
 This task never ends for management!
 Managers must ……………….……………….the work of everyone in the company.
 They must find the employees that are not doing their work efficiently and ……………….them.
 If there are reasons why the employees are not being efficient, they must find these reasons and
……………….……………….

Delegation
Delegation: giving authority for a task to a subordinate (e.g. when a manager gives responsibility to a worker
The manager is still ultimately responsible for the task!
Advantages of delegation to the manager Advantages of delegation to the subordinate

Why might a manager choose not to delegate?

……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
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Why is it important to have a

good manager?

Leadership
A…………………….
• The manager is in ……………….………………..
• The manager expects everyone to ……………….………………..
• The manager makes ……………….……………….
• The manager only ……………….……………….
• The communication only goes ……………….……………….

D…………………….
• Managers will ask workers to get involved in ……………….………………..
• Information will be ……………….……………….……………….………………..
• The manager still makes the decisions but ……………….………………..
• Communication goes ……………….………………..

L…………………….
• Means “leave to do” in French.
• This leadership lets all the workers know the ……………….………………..
• The workers are left to do ……………….……………….……………….……………….……………….……………….
• Communication is ……………….……………….because there is no structure.
• The leader has only a ……………….……………….toplay.

Choice of Leadership style – Label the diagram below

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Different situations require different managerial and leadership styles.Can you think of any examples?
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………

Trade Unions
What is a trade union?
A trade union is ……………..…………………………..…………………………..…………………………..…
What common interests would workers have?
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
……………..…………………………..…………………………..…………………………..…………………………..…………………
Benefits of joining a trade union:
• Strength in numbers
• ………………………..…………………………………..…………(pay, holidays, & hours)
• ………………………..…………………………………..…………(health, safety, noise, & heating)
• ……………………for being sick, hurt, retired, and becoming redundant (machine takes their job)
• Improved ………………………..…………through ………………………..…………
• ………………for when employees are fired, treated unfairly, or asked to something that isn’t their job
• ………..…………from certain shops, sports facilities and clubs
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• ………..…………when there is a closed shop.
A closed shop is ……………..…………………………..…………………………..…………………………..…
Disadvantages of joining a trade union
• It………..…………………..…………(usually an annual fee)
• You may be required to take industrial action, e.g. a strike, ………..…………………..…………
Trade unions also seek to…
• Publicise their views to the media, to influence..………………..…………, e.g. minimum wage laws
• Improve..…………………between workers and management
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