Organisation and management

Key definitions

Span of control — the number of subordinates working directly under an employee.

Chain of command — the flow of instructions being passed down the hierarchy.

A tall structure has a long chain of command and a small span of control (typical of large organisations).

Advantages	Disadvantages
Managers can supervise subordinates easily	Decision making is slower relative to communication
Promotions are more common	Errors in communication are more likely to occur
Employees can form better relationships with their superiors

A wide structure has a short chain of command and a large span of control (typical of small/medium organisations).

Advantages	Disadvantages
Superiors are forced to delegate	Superiors might feel pressured
Chain of command is simple	Superior may lose control of subordinates
Subordinates must be high quality	Managers must be high quality

Planning — create plans to work towards the business goal.
Organising — creating tasks to put the plan into work, and delegating these tasks.
Commanding — giving direction to employees so that the tasks are done well.
Coordinating — managing multiple employees so work is done efficiently.
Controlling — creating deadlines and monitoring progress to meet targets.

Less pressure is placed on the manager, and tasks can be completed more efficiently. However, a manager must trust a subordinate to do well with the delegated task.
The subordinate feels more responsible.

Decisions are made by the manager, and employees must follow instructions from the manager without question.

Advantages	Disadvantages
Decisions are made fast	No employee contribution, leading to demotivation and dissatisfaction
Employees are clear with instructions

Managers and employees share and discuss ideas to come up with the best decision.

Advantages	Disadvantages
Decisions made may be the best option, so better decisions made	Decision making is slow
Employee skills and relationships improve	Conflicts may arise; unproductive

The manager shares the objectives and lets the employees do what they see fit with the given task.

Advantages	Disadvantages
Employees may feel motivated as they have freedom	No clear instructions given
They can develop their own skills	This could be unproductive and slow

Trade union — an organisation made up of workers that allows them to protect their interests.

Advantages	Disadvantages
Better pay	Employees must pay fees to the trade union to be a member
Better working conditions	Action taken by the trade union will reflect the workers whether they agree or not
Protects the rights of the workers