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Business Studies - 7115

Draw Interpret and Understand Simple Organisational Charts

Paper 1 & 2

Draw Interpret and Understand Simple Organisational Charts

Simple Hierarchical Structures


Organizational Structure

The levels of management and divisions of responsibilities are often discussed in organizational structures. Most of the time this division is shown in a chart commonly known as an organizational chart. The organizational chart also shows the hierarchy in the organizational structures. 

Advantages of Organizational Charts

The links within the organization are shown in this chart. The employees get aware of all the possible channels that are being used in communication. 

All the senior and junior levels of the management are shown in this chart. Employees know their positions. They know to whom they are answerable who will report them. They know their immediate supervisors and subordinates.   

This chart gives a sense of belonging to the employees. 

Chain of Command

There is a structure in the management that allows information to be passed on from higher levels of the management to the lower levels of the management. This structure is called the chain of command. 

Span of Control

The term span of control describes how many employees are working under one manager. 

The link between the chain of command and span of control
When there are more people working under one supervisor like five or six, there will be a wider span of control. In the same way, when there will be fewer employees like one or two, working under one manager, there will be a narrow span of control.

Advantages of Short Chain of Command 

In a short chain of command, there is fast communication possible. Fewer levels of management make it possible to reach the message to the intended person instantly. 

The top managers are not so far from their staff so that they can easily communicate and can remain in touch with them. 
There is more span of control that allows the managers to distribute their work to their subordinates. That thing enables the subordinates to make decisions while working on fulfilling a task. 

Roles and Responsibilities Of

Different Stakeholders In An Organization


Responsibilities of a Director

Company directors are the key persons who take decisions in favor of the company. They are mainly responsible for every step taken by the company. The senior managers or department heads directly report them regarding their departments. Although they can communicate at every level, most of the time they focus on the reports submitting them by the managers or department heads.  

Responsibilities of a Manager

Managers are mainly responsible for their daily operations. They lead their respective departments. They have the authority of hiring and firing staff in their departments. They take the report from the supervisors regarding different assigned tasks given to them.  They are responsible for the training of their staff. They do the necessary arrangements for staff training and motivate them to perform better. Managers have the authority to make decisions regarding any particular situation. Managers are expected to report the directors regarding their job and operations managed by them. They are also known as staff managers.   

Responsibilities of a Supervisor

Supervisors report directly to the managers of the department regarding various assigned tasks. They perform according to the instructions of the managers. They manage the teams and not only manages but make a schedule of their teams to finish the work in a given time. They motivate the employees and evaluate their performance. They are also called line managers.

Responsibilities of Employees

Organizations expect employees to perform their daily tasks. It is expected at all levels whether it is an entry-level job or a managerial position. That is the main responsibility of every employee.

Performing work on a daily basis and submitting it is a routine practice of every organization. employees.  

Employees can directly discuss their problems with their line managers as it is included in the duties of line managers to resolve the staff issues at their level.

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