ion chart - ihrm ref

7/31/2019 ion Chart - IHRM Ref

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Unit 1a

Organisation of Departments


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In order for a business to

SURVIVE it must be:

ORGANISED and have GOODCOMMUNICATIONS

This will enable it to GROW andbecome more successful


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What is anOrganisation Chart?

An organisation chart isused to provide apicture of who is in

the business.

It is used to show the

STRUCTUREof the business.


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What Information doOrganisation Charts Show?

Organisation charts are used toshow the following:

Lines of RESPONSIBILITY (who youwill look after; be responsible for)

Lines of AUTHORITY (the way in whichinstructions are passed down)

Lines of COMMUNICATION (the way inwhich information is passed throughoutthe organisation)


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Mr Burns

Managing

Director

Mr B

Wallace

Personnel

Manager

Mrs AMacDonald

Sales/

Marketing

Manager

Miss J

Montrose

Purchases

Manager

Mr H

Nichols

Buyer

Mrs L

McKenna

Finance

Manager

Mr N

Millar

Admin

Manager

Mr Ray

Cruit

Recruitment

Officer

Miss T

Raynor

Training

Officer

Mrs R

Ambleon

Marketing

Assistant

Mr V

Smart

Sales Rep

Mr B

Goodman

Wages

Officer

Miss H

Munro

Admin

Assistant

CaledonianHealth & Fitness

12


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Mrs R Ambleon

Marketing Assistant

Mrs A MacDonald

Sales/MarketingManager

Mr V Smart

Sales Rep

Lines of Responsibility The lines of responsibility show

WHO exactly is in charge ofothers.

The example above shows that Mrs MacDonald isin charge of all the work that is carried out byboth Mrs Ambleon and Mr Smart

Mrs MacDonald is their LINE MANAGER


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Solutions1) List the people who work in the Sales/Marketing Department.

Mrs A MacDonald; Mrs R Ambleon; and, Mr V Smart

2) Who is Mr Nichols line manager?Miss J Montrose, Purchases Manager

3) Mrs Ambleon has been asked to design a leaflet to recruit newmembers. She is considering promoting a special offer however isunsure how much discount to give. Mrs A MacDonald is out at a

meeting who should Mrs Ambleon report to?Mr R Burns, Managing Director

4) Mr Burns recently purchased new software to enable customerrecords to be stored more efficiently however is aware that staffwill need training.

Who should Mr Burns speak to first regarding the training program?Mr B Wallace, Personnel Manager

Who will be responsible for the training program? Justify youranswer?Mr R Cruit as he is responsible for delivering the training

programs to all the members of staff and recording theirlevel of progress


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Relationships withinDepartments

LINE RELATIONSHIP Relationship between managers

and the staff directly belowthem

LATERAL RELATIONSHIP Relationship between people on the same level

who report to the same Line Manager

Identify the LINE and LATERALrelationships which exist at CaledonianHealth & Fitness


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Solutions LINE RELATIONSHIPS

Mr Burns and Mr Wallace

Mr Burns and Mrs MacDonald

Mr Burns and Miss Montrose

Mr Burns and Mrs McKenna

Mr Burns and Mr Millar

Mr Wallace and Mr Ray Cruit

Mr Wallace and Miss TRaynor

Mrs MacDonald and MrsAmbleon

Mrs MacDonald and Mr VSmart

Miss Montrose and MrNichols

Mrs McKenna and MrGoodman

Mr Millar and Miss Munro

LATERALRELATIONSHIPS

Every Manager has a lateralrelationship with one another

Mr Ray Cruit and Miss T Raynor

Mrs Ambleon and Mr Smart


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What is the CHAIN OF COMMAND?

The CHAIN OF COMMAND is the way in

which instructions are passed downthrough

each level in the organisation.

Mr R Burns

Managing Director

Miss J Montrose

Purchases Manager

Mr H Nichols

Buyer

Mr Burns is unhappy with the current

supplier of the Gym equipment as he feelsthe quality of the equipment is poor.

WHO DOES MR BURNS CONTACT TO DISCUSS THIS ISSUE?

Mr Burns informs Miss Montrose that anew supplier needs to be found

WHO DOES MISS MONTROSE CONTACT TO DISCUSS THIS ISSUE?

Miss Montrose explains to Mr Nichols thathe must find a better supplier one whichis reliable and offers high quality products


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Activities

Complete the followingtasks in your activities booklet: Question 1: What is an organisation chart? Question 2: The Power & Light Company Question 3: Identifying relationships in an

organisation Question 4: Constructing an organisation chart

GROUP ACTIVITY Create an organisation chart of your Admin class!

You could pick names out of a hat to decide roles

andjob titles. Who can come up with a creative nameforyour company?


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Who would find anOrganisation Chart useful?

VISITORS to the organisation (gives them anoverall impression of the size and structure of thebusiness and they are able to identify who they

wish to see)

NEW MEMBERS OF STAFF (able to identify whothey will be reporting to and working alongside)

RECEPTIONIST(useful in assisting visitors to the

correct department etc)

As the new AdministrationAssistant I was pleased to be

given a copy of the organisation

chart as it helped me to learn thenames of other colleagues and toknow where to find them


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Advantages & Disadvantages ofusing an Organisation Chart

Able to see the

overall size of theorganisation

Visitors can identifywho it is they aregoing to meet with

Employees are able tosee who they aregoing to be workingwith and reporting to

Can be very expensive tomaintain if new employees

join the business or ifcurrent employees leave,then a new chart needs tobe created

There may not be enoughinformation on the charteg. Is there a phoneextension number? Isthere a photo of theemployee? Is there a roomnumber?

ADVANTAGES DISADVANTAGES


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Activities

Complete thefollowing tasks in youractivities booklet:

Question 5: Word bank Question 6: identify

features of an organisationchart


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Types of Organisational Structures

There are two main types oforganisational structures:

TALLFLAT

FEW levels of

management

MANY levels

of

management


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What is a TALL Structure?

A Tall structure has manylevels of management.

There can be a feeling in this

type of organisation that thereare too many bosses!

Tends to be seen in largerorganisations eg. Civil Service;

Hospitals; Universities;Armed Forces etc


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A Tall Structure

How many levels are in thisstructure? 1

2

3

4

5

6

7

8

For those employees who work onlevel 8 there are manyopportunities for promotion.

There are many lines ofcommunication which meansthat before a decision can bemade many people have toshare their ideas. This cantake a very long time.


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What is a FLAT Structure?

A Flat structure has fewerlevels of management.

Employees are given GREATERRESPONSIBILITY asmanagers have to DELEGATEtasks to reduce their own

workload. Egs IBM; Virgin Group; Royal

Bank of Scotland; etc


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