DIRECTORS: Responsible for the business's strategy (overall direction). The directors decide on strategy and targets at regular board meetings.
MANAGERS: Organise the carrying out of the director's strategy. A large firm may have senior, middle and junior managers.
SUPERVISORS: Are ranked below managers. They usually look after specific projects or small teams of operatives.
OPERATIVES: Workers who aren't responsible for other members of staff. They're given specific tasks to perform, by managers or supervisors.
Organisation Charts: Structure of a business
A HIERARCHICAL firm is structured in layers. The directors are on the top layer, and operatives on the bottom layer. The number of people on each layer increases as you go down the hierarchy. In a firm with a 'tall' hierarchy, communication from the directors to the operatives can be slow because there are lots of layers to go through.
A FLAT HIERARCHY has fewer layers. This can make communication clearer and more efficient. But managers can get overwhelmed if they're incharge of too many people.
In a MATRIX STRUCTURE, groups of operatives work under two or more managers. A matrix structure is designed to encourage flexibility. But there may be problems if two managers give the same operative conflicting tasks.
A CIRCULAR CHART arranges the employees in circles. Cirectors and senior managers are at the centre and operatives on the outside. NO ONE IS "AT THE BOTTOM" - Good for making people feel like they are part of a TEAM.
1. STORING - Information can be stored for future use using either ELECTRONIC or PAPER-BASED filing systems.
2. PROCESSING - Information can be processed to generate new information.
3. RETRIEVING - Stored information often needs to be retrieved and used again.
4. DISSEMINATING - Information often needs to be disseminated (distributed) to other people and organisations; verbally, in wiritng or in graphs and charts.
Administration is vital for all departments in a business.
Good Administration helps businesses operate efficiently and compete effectively:
- Having access to up to date and reliable information on competitors allows managers to make sensible, well-informed marketing decisions.
- Administration errors can lead to misleading data being given to customers.
Good administration is needed for the tax system.
VALUE ADDED TAX (VAT): depends on the difference between the price a business charges for its product and the amount it costs to make it. So businesses need accurate records of whats been paid to suppliers and received from customers.
INCOME TAX and NATIONAL INSURANCE: Depend on how much employees earn, so a business needs accurate records of how much it pays workers. Employers have to deduct Income Tax and National Insurance from their employees' pay and give it to the government. Employers also make an extra National Insurance payment for each person they employ.
CORPORATION TAX: Depends on how much profit a business makes. Accurate sales figures and records of the firms total spending are essential.
ROUTINE TASKS: Tasks that need to be carried out regularly and are basically the same each time. For example:
- Storing documents in the correct place so that they can easily be retrieved. Entering details of invoices onto a database. Restocking shelfs in a supermarket.
Routine tasks can usually be done by operatives. They dont usually involve much decision making. BUT THIS DOESN'T MEAN THEY ARE NOT IMPORTANT. If routine tasks weren't done, the business would soon suffer.
Many routine tasks are now done by a computer instead of a human e.g. creating invoices and backing up files.
Non-routine tasks are less predictable and often involve making high level decisons.
- PRODUCT DEVELOPMENT - requires creativity and technical expertise. As a failed product could lead to huge losses, this needs the input of experienced staff.
- RECRUITING - managers will need to look through all the applications and decide which one is best. These decisions are very complicated, and employing the wrong person can be expensive for the business so senior managers need to make these decisions.
- UPGRADING EQUIPMENT - researching and comparing the possible options.
Non routine tasks are normally carried out by teams of operatives, with managers taking overall responsibility for the success of failure of the task.
Non-routine tasks can't usually be handled by a computer alone.
Managers have more responsibility than operatives and have to make tougher decisions.
1. ROUTINE DECISIONS: Involve day to day judgements. Usually made by operative managers or by operatives themselves. These types of decisions can often be made by a computer.
2. NON-ROUTINE DECISIONS: More important decisions that may have a major effect on the business. As a result non-routine decisions are usually made by senior managers or directors.