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Investigating people at work. The Functions of Businesses. Lesson Objectives. In this lesson we will look at How businesses are structured Tall and flat organisations Organisation structures The role of departments and the way they can be arranged The role of managers and supervisors.
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Investigating people at work The Functions of Businesses Investigating people at work - Functions
Lesson Objectives • In this lesson we will look at • How businesses are structured • Tall and flat organisations • Organisation structures • The role of departments and the way they can be arranged • The role of managers and supervisors Investigating people at work - Functions
Every business can be divided up into a number of functions, or departments. Some organisations will have functions unique to them. Airlines will have an engineering function and a newspaper will have newsroom and advertising functions Typically these are:- Production Marketing Sales Finance Administration Human Resources (HR) Information Technology (IT) The Functions of Businesses Investigating people at work - Functions
Production • In a manufacturing organisation the PRODUCTION function is responsible for planning the creation of the product and ensuring quality is maintained Investigating people at work - Functions
Marketing • Before a product is designed MARKETING will try and find out what customers want and plan advertising to attract them to the product Investigating people at work - Functions
Sales • Once MARKETING have found out what the customers want, the SALES function will try and persuade them to buy Investigating people at work - Functions
Finance • This function covers every financial matter in the business such as- • Budgets • Production costing • Financial reporting Investigating people at work - Functions
Administration • ADMINSTRATION creates and manages systems for keeping the business running. These might include:- • Catering • Supplies • Transport Investigating people at work - Functions
Human Resources (HR) • Personnel management, including:- • Recruitment • Contracts of Employment • Training • Welfare • Industrial relations Investigating people at work - Functions
Information Technology (IT) • Responsible for systems such as • Internet • Intranet • Management and functional systems unique to that company • Website management Investigating people at work - Functions
Tall organisations have a ‘layered’ structure Today ‘flat’ is more common, with main activity being supported by subsidiary activities (sometimes outsourced) Tall & Flat Organisations Sales and marketing MAIN ACTIVITY Production Accounts Warehouse SUPPORTING ACTIVITIES Administration Investigating people at work - Functions
Organisational Structures • An organisation can be structured to reflect specific departments or, • Can have more specific structures:- • By product or service • By customer • By process or equipment • Matrix structure Investigating people at work - Functions
Schools Division by product or service Examples are A supermarket by products supplied The BBC by media and audience Local Council by services provided By product or service Schools Planning Leisure Housing Parks Envrmnt Investigating people at work - Functions
By customer • Some businesses divide up by type of customer. A firm of solicitors might have these departments:- • Conveyancing • Matrimonial • Criminal • Accidents & Injury • Probate (wills etc) Investigating people at work - Functions
By process or equipment • Division by process or machinery • A steelworks may have departments specialising in wire making, plate steel, stainless steel and so on • An insurance company may have sections for accounts, claims, investments and so on Investigating people at work - Functions
Matrix structure • Allows cross referencing between functional departments and project-specific teams • Brings together specialists for a particular task • Look at example on Page 17 of the textbook Investigating people at work - Functions
Activity • Think of an organisation you have been part of for example:- • Work experience • Young enterprise • Part-time work • Construct a simple organisation structure on the same lines as Figure 1.17 on p17. Investigating people at work - Functions
In typical organisation manager reports to director Responsible for Staff Planning, organisation and delivery Meeting customer needs Supervisors usually have responsibility for Specific group of workers Deadlines being met Supervision of staff Some legal responsibities (H&S for example) Role of Management & Supervisors Investigating people at work - Functions
Lesson Objectives • In this lesson we looked at • How businesses are structured • Tall and flat organisations • Organisation structures • The role of departments and the way they can be arranged • The role of managers and supervisors Investigating people at work - Functions