BUSINESS MANAGEMENT CHAPTER 4

• senior
• the level of management involved in the strategic planning and decision making of an organisation
• middle
• translates corporate objectives into specific projects, monitors progress of projects and supervises front - line managers
• front-line
• lowest level of managers in the hierarchy; responsible for the work of operating employees only and does not supervise other managers - only subordinates

division of labour refers to the segmentation and coordination of activity that is required to ensure that organisational goals are met

• employees arranged into layers or levels with power authority, responsibility and accountability increasing the further up the hierarchy they progress
• rigid lines of communication with most communication going downwards

• Traditional organisational structure based on functions performed eg
• finance, marketing
• Advantages – allows for employee specialisation which improved
• productivity, clear career paths and economies of scale

based on divisions according to location

Employees are grouped together based on products they make or sell

based on the type of customers dealt with by a group of employees

• clear division of labour with a large degree of specialisation
• clear downward communication
• centralised decision making
• narrow span of control

• fewer levels of staff between senior and front-line, resulting in shorter and improved communication paths
• employees are involved in decision making (decentralised) 
• increased training and multiskilling of employees

a structure that places managers and employees into project teams that cut across functional or departmental lines, and requires them to report to both functional and task management

functions are outsourced to other organisations; the core organisation exerts control via outsourcing contracts

the number of people reporting directly to one manager or supervisor

the vertical line of authority that passes command down through the levels of an organisation’s hierarchy

each employee is directly responsible to one manager

• fewer levels of staff between senior management and front-line employees, resulting in shorter and improved communication paths 
• a reduction in operating costs due to management downsizing

reorganisation of an organisation by removal of one or more layers of management

the shared values and beliefs of an organisation, which can influence the actions and decision-making style of managers and employees

• attention to detail
• people orientation
• task or process orientation
• team orientation
• level of competitiveness
• degree of emphasis on ethical and social responsibilities
• diversity
• age of the organisation

• stories and narratives
• rituals
• material symbols
• behaviour of management
• recognition
• communication
• specialist language 
• training
• policies

• increased productivity
• greater employee work ethic
• reduced staff absenteeism and turnover
• reduced cost of recruitment and training
• greater profitability
• positive public perception

• increased productivity
• greater employee
• work ethicreduced
• staff absenteeism and turnover
• reduced cost of recruitment and training
• greater profitability
• positive public perception

A policy is a guiding principle used to set direction in an organisation. A procedure is a series of steps to be followed as a consistent and repetitive approach to accomplish an end result.

• legal pressures/legislative compliance
• social responsibility
• changing markets and other international pressures
• changes in technology

• lobby groups
• trade unions

• owners/shareholders
• management and employees

• 1. issue identification
• 2. research and analysis
• 3. stakeholder input
• 4. policy development
• 5. draft policy is posted
• 6. policy approval
• 7. evaluation