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  • Organisational structures- continued
    • Elements of organisational structures and How they impact on business organisations
      • Use of organisation charts
        • Chief ExecutiveReports to the shareholders. Top of the organisation with most authority. Responsible for the success or failure of the business. Makes most important decisions which affect the whole business
        • DirectorsReport to the Chief Executive. Each director takes charge of a functional area eg. HR. Plan department strategies. Must make sure their departments contribute to achieving the overall aims of the business
        • ManagersReport to the Directors. In overall charge of the department, ensuring it runs smoothly. Make decisions concerning the whole department
        • SupervisorsReport to the Managers. Usually in charge of a team of people within the department. Make day-to-day decisions to ensure the area they are in charge of runs smoothly
        • Assistants/ OperativesBottom of the organisation. Responsible for carrying out the instructions given to them by their supervisors
    • Division of work – Breaking down a production process into separate tasks assigned to different people in order to improve efficiency
    • Chain of Command – a system of passing instructions from top to bottom in the business
    • Span of Control – the number of subordinates for whom a supervisor/manager is responsible. Flat structures have WIDE spans of control, Hierarchical structures have NARROW spans of control.
    • Communication Paths – Way in which information passes through the organisation
    • Authority – the power to give orders and make decisions. Authority can be delegated to others to help them develop & to empower them.
    • Responsibility – having a duty to deal with something or to manage staff. Responsibility CANNOT be delegated to anyone else.
    • Delegate – a manager authorising a member of staff to make decisions
    • Empowerment – giving power to staff to take some control


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