Analyse How Businesses Are Organised

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Activity 2: Analyse how businesses are organised

Organisational structure:
Definition: The way a business is organized internally to enable employees to carry out their job roles and communicate with each other. There are many Organisational structures these organizational structures allow you to know what everyone’s role is in a business and also who they have power over. The business is able to work more sufficiently if they have an organizational chart. Span of control - A span of control is the number of people who report to one manager in a hierarchy. The more people under the control of one manager, the wider the span of control. Less means a narrower span of control. Chain of command - Chain of command is the order in which orders and decisions are passed down from top to bottom of the hierarchy. Line Manager – A Manager who is responsible for achieving an organisations main objective by executing functions such as policy making, target setting and decision making. Purpose of organisational chart:

The purpose of an organizational chart is that it depicts the staffing order of a company. It is commonly shown in a hierarchical format; it also helps identify who does what in an organization, how many staff work in the company and what the chain of command is. This information is important to internal staff, HR departments, stakeholders and board members. Why is there a need for an organizational STRUCTURE?

It is essential for a business to have an organizational structure because if they didn’t have one the business would be a disorganised mess. Here are the advantages of having an organisational structure. Firstly it would be favorable towards the employees. There would be less inconvenience as the employees who- know who to go to and report to if they have any problems and need a person higher up in the hierarchal structure of the business to sort it out for them. Therefore the workers would know what responsibilities they have and what job they...
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