🏢 Organisation and Management – IGCSE Business Studies

🔶 Organisational Charts

✅ What is an Organisational Chart?

An organisational chart shows the internal structure of a business – who is responsible for what and who reports to whom.

🔹 Example Organisational Chart:

Managing Director
|
┌─────────────────┼───────────────────┐
Finance Manager Operations Manager Marketing Manager
│ │ │
Accounts Clerk Production Head Sales Team

🔶 2. Simple Hierarchical Structures

✅ Key Terms:

Term	Definition	Example
Span of Control	Number of people one manager is directly responsible for	A supervisor manages 5 workers → span = 5
Levels of Hierarchy	Number of layers between the top and bottom of an organisation	A CEO → Manager → Supervisor → Staff = 4 levels
Chain of Command	The path through which orders are passed down the hierarchy	CEO tells Manager → Manager tells Supervisor

📘 Flat vs Tall Structures:

Feature	Flat Structure	Tall Structure
Levels	Fewer	Many
Communication	Faster	Slower
Supervision	Harder	Easier
Example	Small tech startup	Government department

🔶 Roles and Responsibilities

Role	Responsibilities
Directors	Set long-term strategy, make big decisions
Managers	Implement strategy, manage departments, make day-to-day decisions
Supervisors	Monitor teams, ensure work is done properly
Employees	Carry out tasks, follow instructions, contribute to business goals

🔁 Inter-relationships:

• Managers depend on employees to meet targets.

• Employees need clear guidance from supervisors.

• Directors rely on managers to implement their vision.

🔶 Functions of Management

Think of P.O.C.C.C. (Planning, Organising, Coordinating, Commanding, Controlling):

Function	What it Means	Example
Planning	Setting goals & deciding how to reach them	Plan a product launch
Organising	Allocating resources like people and money	Assign roles in a team
Coordinating	Ensuring departments work together	Sales and production teams align
Commanding	Leading and motivating staff	Giving instructions and setting a good example
Controlling	Checking results and taking corrective action	Monitor budgets, assess performance

🔶 Delegation

✅ What is Delegation?

When a manager gives authority to a subordinate to carry out a task.

Advantages of Delegation	Disadvantages if Poorly Done
Develops staff skills	Can lead to confusion
Reduces manager’s workload	Lack of accountability
Builds trust	Can cause mistakes if staff are not trained

⚖️ Trust vs Control:

Good managers know when to trust their team to handle tasks and when to maintain control to ensure standards.

🔶 6. Leadership Styles

Style	Description	Advantages	Disadvantages	Example
Autocratic	Leader makes all decisions	Quick decisions	Low staff motivation	Military
Democratic	Involves team in decision-making	Motivates staff	Slower decisions	Tech startups
Laissez-Faire	Little or no guidance	Encourages creativity	May lack direction	Design firms

🧠 How to Recommend a Style:

Consider:

• Time pressure → Autocratic

• Creative work → Laissez-faire

• Teamwork and motivation needed → Democratic

🔶 7. Trade Unions

✅ What is a Trade Union?

An organisation that represents the interests of employees.

✊ Functions:

• Negotiate better pay and conditions (collective bargaining)

• Protect workers' rights

• Offer legal advice

• Provide training and support

🔁 Effects of Union Membership:

Positive for Employees	Possible Concerns for Employers
Stronger voice	Risk of strikes
Improved conditions	Higher labour costs
Job protection	Slower negotiations

📌 Exam Tips

✅ Know diagrams – especially organisational charts
✅ Use business examples – e.g., "A manager in a hotel may delegate cleaning tasks to supervisors"
✅ Compare leadership styles and structures when asked
✅ Use definitions + examples in longer questions
✅ Evaluate – say which is better and why, not just list