Business 3.4

*ORGANISATION CHARTS  *HIERARCHY 

A business is usually structured through a Hierarchy.

A business can be organised in a number of ways: Product Divisions, Regional Divisions, Functional Areas e.g. marketing/finance. People in each area of the organisation will be specialised & have a greater understanding of their area of the business. They will be accountable for the performance of their area & will have clear CHAINS OF COMMAND & better communication.

Organisation Structures can be shown through organisation charts.

*LINE MANAGERS can pass on AUTHORITY to their SUBORDINATES through DELEGATION.

*EMPOWERMENT *FUNCTION 

As a business expands, they will naturally employ more people, increasing the chain of commmand and SPAN OF CONTROL. The size and structure impacts communication, control and flexibility within a business. 

A business can downsize, DELAYER to; reduce costs, improve efficiency, improve communication. 

If a business is well organised, it means everyone will know what their job is and who they are responsible to. This can help to motivate workers.

Tall Organisational Chart = simplest form, long CoC

Flat Organisational Chart = small organisations, few layers, short CoC

*CENTRALISATION *DECENTRALISATION

Centralised - increased control and standardisation , but decisions can be slow. 

Decentralised - may know their local customers better, but loss of control. 

Why Delayer?

Delayering can reduce costs & unneccessary employees. This could increase effienciency and profitability. 

Some decisions should be made centrally, but the business must find a good balance between centralisation and decentralisation. 

*MOTIVATION 

It can lead to :   hardworking and flexible workforce,  greater commiment to organisation 
                          less time off with illness,   improved customer service                                                                 improved communication within the business, produce higher quality work

THIS ALL HELPS INCREASE SALES AND REVENUE, HELPS THE ORGANISATION TO BE EFFEICIENT, DECREASING COSTS = HIGHER PROFITS!!££

It can come from within, some workers will be naturally more enthusiastic.

Demotivated workers may not be fully commited to the business, they may not carry out their jobs as well, take longers breaks etc . LESS EFFICIENT. 

*HIERARCHY OF NEEDS 

How can these be used in the workplace?? 

SA - Creating Job Oppurtunities, promotion, training (allows employees to reach potential)  

SE - Creating promotion oppurtunities, empowering employees, using rewards to recognise achievements.

SOCIAL - Working in teams, creating socialising oppurtunities 

SAFETY - Ensuring long term progression and job security   

SURVIVAL/PHYSIOLOGICAL - Cleana and safe working environment, well paid-jobs. 

*COMMUNICATION 

3 Methods: Verbal, Written, Visual. 

For C to be effective, the sender has to choose an appropriate medium to reach the reciever. *FEEDBACK should also be avaliable to ensure the communicationo has been successful.

Insufficient/Excessive communication can have an affect on: motivation, customer service, mistakes, understanding of employees, speed of decisions, brand image of business, efficacy. 

For communication to be effective: info must be simple and clear, sent from right sender to right reciever, takes place at right time and place, appropriate method used. 

Chanels of communication can be formal e.g. meeting or informal e.g grapevine

Formal communication is approved by the business.

Informal communication can get in the way of effective communication e.g. gossip

* INTERNAL COMMUNICATION  * EXTERNAL COMMUNICATION

Barriers to effective communication: 

• Innapropriate Medium/Technology breaks down
• Sender gives information unclearly 
• Reciever doesn't understand message
• Reciver not paying attention/unfocused on whole message
• Distortion of message (if travelling through lots of people)
• Being angry/tired
• Cultural Differences 
• Use of jargon
• "Noise" - communication issues that may stop a message being recieved 

Internal: Reports, notices

External: Video, internet, advertising, letters, phone, E-Mail

Remuneration - Payement system adopted by a business to pay and reward employees 

Types of Worker : 

• FULL-TIME 
• PART-TIME
• TEMPORARY 
• FREELANCE 
• PERMANENT
• Manual/Non-Manual

*PAYMENT SYSTEMS                                                                                                                         TIME RATE:  Wages, OVERTIME                                                                                                        SALARIES                                                                                                                                            Results Based: PIECE RATE, COMMISION, BONUS                                                                         FRINGE BENEFITS: Company Car, Discounts, Heathcare, Pension Schemes 

Each system will have a different effect on the business & the motivation of employees. 

Choosing a Payment System: The Influences on your choice :

1) Nature of the job - piece rate wouldn't work for a secretary

2) Cost - what's the most cost effetive option?

3) Motivation 

4) Flexibilty 

Commision motivates staff to sell more, but could result in low wages. The right payment system will maxixmise output. 

Salaries are usually used for non-manual (white collar workers) 

Manual workers = "Blue Collar"

Profit Sharing is another reward system where employees get a share of the profits.