Revision Notes

Organisation and structure

  1. Fayol (a theorist) said that a manager forecasts (e.g. sales); plans (e.g. sales campaign); organises (e.g. recruitment); commands (e.g. tells people what to make); controls (e.g. stock control) and co-ordinates (e.g. between departments). This may be remembered as FPOCCC.
  2. There are different types of organisational structure: line structure - narrow span of control (definition to learn)
  3. As a firm expands it may have a line and staff structure: e.g. firms have specialist departments.
  4. Organisation chart (vertical, horizontal, circular) shows the organisational structure.
  5. Matrix organisational structure: combines line departments with the setting of projects. The project team may therefore have in it members from different departments. e.g. someone from Marketing, Personnel, Production and Finance.
  6. Advantage of matrix: motivational; teamwork; membership is based on ability as the team from the different departments are elected.
  7. Span of control: important concept. Refers to number of people under your direct control. Influenced by the ability of the manager; the ability of the subordinates; the type of task.
  8. Widen the span: leads to more delegation. Narrow it; more direct control. (Link this idea to motivation).
  9. Tall organisation ahs a long chain of command that may be demotivating (alienation; long time for communication). Chain of command refers to the flow of control.
  10. Delegation - the passing down of tasks with responsibility for those tasks BUT ultimate responsibility rests with the manager.
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