3 15 2018 LESSON OBJECTIVES 1 Learn about different types

3/15/2018 LESSON OBJECTIVES 1. Learn about different types of organizational structures and how the advancement of ICT has impacted on them. 2. Learn about functions of organizations 3. Review and question time: Students should be able to name at least two organizational structures, list their advantages and disadvantages, and discuss the impact of ICT on organizational structure. Name and describe at least 5 functions of organizations. AJ Busigu (Bsc Hons, SCJP 6) 1

3/15/2018 STRUCTURE OF AN ORGANIZATION Hierarchical Structure: AJ Busigu (SCJP 6, BSC Hons) 2

3/15/2018 STRUCTURE OF AN ORGANIZATION Advantages of hierarchical structure: 1. 2. 3. An individuals authority and responsibility are clearly defined. Effective use of specialist managers is used Employees can become very loyal to their department Problems: 1. Decisions take long to make and implement 2. There can be poor communication across sections 3. Senior staff can be very remote from the lower levels of the structure. AJ Busigu (Bsc Hons, SCJP 6) 3

3/15/2018 STRUCTURE OF AN ORGANIZATION Horizontal structure: AJ Busigu (Bsc Hons, SCJP 6) 4

3/15/2018 STRUCTURE OF AN ORGANIZATION Advantages: 1. 2. 3. Better communication between managers and workers Less bureaucracy and better decision making Lower costs associated with fewer levels of management. Problems: 1. Less prospects of promotion 2. Wide span of control can weaken control of top management-more delegation 3. Managers may be responsible for several department making their role not very clear. 4. Due to specialization, different departments may have little to do with each other. AJ Busigu (Bsc Hons, SCJP 6) 5

3/15/2018 STRUCTURE OF AN ORGANIZATION Question: How has the development of ICT affected organizational structure? 1. 2. 3. 4. 5. 6. ICT has lead to flatter organizational structures ICT enables managers to cope easily with a wider span of control Some jobs at a lower level have disappeared, i. e. , copy typists, due to the growth of word processing. Direct methods of data entry reduce the need for clerical staff (scanners, bar codes etc) Roles of middle managers have been eroded because ICT enables information to be produced in a form suitable for strategic managers directly from the operational level. Decision making by ICT systems, i. e. , decisions regarding granting of loans by banks, and stock ordering in supermarkets. 6

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS There are many different departments in an organisation that have different functions. Some sort out the finances, others are in charge of hiring and firing, while some market a product or service. The main job functions in an organisations are listed below: 1. Accounts and Finance. 2. Human Resources. 3. Sales 4. Marketing. 5. Research and Development 6. Administration. 7. ICT Services 8. Design 9. Distribution 10. Product provision AJ Busigu (Bsc Hons, SCJP 6) 7

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Accounts and Finance: This department's function is simple. They deal with all the money for the organisation. They look after what money comes in and out of the organisation. Below are examples of what money matters the department looks after: 1. Record payments (money) of what they receive from its customers for any service or product they provide. They will bank any cheques or cash they receive from customers. 2. Arrange payment to their suppliers. For example, rent, stock, raw materials, telephone bills, stationary, utility bills, such as gas, electricity, water, etc. 3. Pay staff wages using something called BACS. This stands for Banks Automated Clearing System - it allows money to be transferred electronically from one account to another. Records of all of these transactions are important so Inland Revenue (tax man) can calculate the correct amount of tax the organisation must pay. AJ Busigu (Bsc Hons, SCJP 6) 8

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Sales: The function of this department is to sell its products or services to its customers. Most of you who have part time jobs will work in sales. You may work on the shop floor for an organisation, e. g. JJB, Top Shop, etc. Your responsible for helping customers find what their after. You will also be responsible for making sure the shop floor is tidy and presentable, as well as making sure goods are on display. Other sales-people have slightly different roles. think about the roles of sales-people in different industries, such as a kitchen design company, newspapers, etc. Some salespeople work in telesales. They sell goods or services by taking orders over a telephone line. AJ Busigu (Bsc Hons, SCJP 6) 9

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Marketing: The marketing function is to market, advertise or promote a product or service. They may do this by using the following: 1. Adverts in newspapers 2. On television 3. Using the Internet 4. Bill boards 5. Flyers 6. Post / email (this is called direct marketing) AJ Busigu (Bsc Hons, SCJP 6) 10

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Research and Development This department focuses on researching new developments, technologies, techniques, materials to improve the product or service it provides. This is so they can have an edge over its competitors and match the needs of their customers. AJ Busigu (Bsc Hons, SCJP 6) 11

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Human Resources: Human Resources or HR for short used to named personnel. This department deals with its employees (those people who work for the organisation). They have the following roles: 1. Advertise for new jobs (vacancies) 2. Organise the application forms / interviews / acceptance letter 3. Handle requests for leave 4. Dealing with disciplinary matters 5. Arranging cover when employees are absent 6. Staff training arrangements 7. Dealing with trade union reps 8. Giving written warning 9. Firing employees This department meets with all the other departments to see if all employees are happy working, if there any disciplinary action needed towards staff, training requirements, etc. AJ Busigu (Bsc Hons, SCJP 6) 12

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Production(or services provision) This doesn't apply to organisations that only provide a service. This department focuses on producing the product, e. g. on the production line. More and more machines are taking over in this department. ICT As the name suggests this department maintains all the workstations in an organisation. Design When the research and development department have completed their work the Design department work with them to create the new end product. AJ Busigu (BSC Hons, SCJP 6) 13

3/15/2018 FUNCTIONS WITHIN ORGANIZATIONS Administration The administration function is usually responsible for the day to day running of an organisation. Below is a list of some responsibilities the admin department might have: 1. Looking after the buildings and facilities 2. Managing cleaning contracts 3. Processing customer orders Keeping records of staff hours / daily transactions 4. Fleet management (organising drivers and vehicles) A lot of the time the admin department deal with keeping records (typing up) and exchanging information between departments. AJ Busigu (Bsc Hons, SCJP 6) 14