Formal Organisations

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Organisations exist to accomplish objectives through working co-operatively to achieve more than what one individual could complete by his or her self. Organisations work better because they use different skills from different departments to complete a task or job. There are different types of organisations they are: Formal Organisations Planned organisation of the action of a group of people for the accomplishment of some common purpose or goal. Examples of formal organisations are: Schools, Colleges, Hospitals, and Banks.

Informal Organisations An informal organisation is an organisation like a social club. Examples of an informal organisation: Football club, Working Man’s club. How Business Organisational Charts are organised A business need to know what it wants to achieve. The management of the business will set objectives; these objectives could be a number of things including: providing a service, making a profit or even growth. The management will then choose an internal business structure to suit its needs or objectives.

The structure will show the status of each person, lines of communication, spans of control (who has control over what and who), and different departments within the business. Organisations are organised in a variety of ways, organisation structures are made up to show each persons individual tasks and responsibilities within a company. Organisation within a company can affect the companies’ efficiency, information flow and the job satisfaction of the workforce or ultimately can mean weather the business is a success or fails.

Organisations are also organised by how many people are in the organisation. To show the organisation of a business an organisational chart is used to portray the structure of an organisation, it also shows the hierarchical structure (levels of authority within a business) and people’s different job titles. Snooze Cottage Organisational Chart This is an organisation chart of Snooze Cottage: Hierarchical Structure These kinds of organisations have people in many different levels of authority and responsibility.

There is usually a Managing Director with departmental directors responsible for functional areas. Each functional would have a manager in charge, with workers, co-ordinators and supervisors reporting directly to him. As you can see form the diagram above information within organisations travels in a number of ways, upwards, downwards, sideways and diagonally. The reason way the hierarchical structure is drawn as a pyramid is because there are normally more workers than bosses. The further down the pyramid you go the number of staff employed is increased.

The jobs at the top of the structure usually carry more authority than the ones at the bottom. Downward Communication The diagram above shows communication travelling up and down within companies. If a decision is taken at the managing director level, the decision may be to start up a new marketing plan. The plan will be applied by instructing the relevant middle management (department heads or line managers) to then instruct there subordinates to carry out the new task. This is an example of downward communication with in companies.

Upward Communication An example of upward communication within a company is if staff, offer comments to their superiors about working conditions, current jobs, staff matters. Upward communications involve asking for authority from superiors, advice and complaints. Horizontal communication Horizontal communication within a hierarchical pyramid involves staff of the same status but usually between heads of department. Heads of department will usually have meetings regularly to discuss new plans or policies.

If horizontal communication does not take place between the different departments serious damage can be done to the structure and the way the structure operates, because in all organisations each department is relent on each other. Diagonal Communication Diagonal communication is when staff at different levels within an organisation, communicate for example when a finance clerk may need personal bank details of a new employee, so the clerk will need to communicate with the head of Human resources. This is an example of diagonal communication. Flat Structures

Flat structures have less levels of authority than the strictly hierarchical structure. Flatter structures generally have one or two levels of management. Communications in flatter structures are usually easier than in the hierarchical structure because there are less levels of authority. The only problem with having less levels of management is that the workload will increase at each level of the flatter structure. Snooze Cottage Organisation The organisation of Snooze Cottage is known as a flat or flatter structure. It only has three levels of authority.

These are Richard and Patricia (owners) they are in control of all the staff employed and they have a wide span of control, Hazel (housekeeper) looks after the house by delegating jobs to Jean, Mal, David and Pauline, Pauline (cook) who delegates task to the kitchen assistant. Most small businesses have flat structures. Flat structures present some problems like centralised authority, there are also few authority levels and management tend to have wide spans of control, for example in the Snooze Cottage organisation Richard and Patricia have wide spans of control. Functional Areas of an organisation

Different areas of an organisation have different purposes. The main functional areas of an organisation are: Financial department Payroll department Stock control department Production department Marketing ICT Services Financial department: The financial accounting department is responsible for keeping records of all financial transactions that take place in the day to day running of the business. These can include invoicing a customer or the sale of goods. Payroll: The payroll department is responsible for paying employees and keeping the records of taxing company employees.

Stock control: Organisations, which keep stocks of raw materials, must have a stock control team which manage the amount of raw materials the company has to produce its product. If the company needs more stock then the stock control department will place an order and contact the finance department to get the money required and produce an invoice, this is what we call information flow. Production: The Production department is responsible for making the raw materials into a finished product and if they require more raw materials then they will contact the stock control team.

This again is relating to information, if a business has poor information then information will not get to the rite person/persons. Marketing: The marketing team advertise the finished product. But even before they must analyse the market to see if the market is in need if a new product, then the product will be made. ICT Services: ICT services can be broken down into many sections, general word processing, data communications, and computer systems. Most large firms these days will have a computer an ICT department. Functional Areas of the Snooze Cottage Organisation

As you can see from the organisational chart of Snooze Cottage there are different areas of an organisation and each area has its own role or responsibility. Within Snooze Cottage there are six functional areas: 1. Catering: Pauline is a cook and Jacqui responsible for the daily food preparation and kitchen chores. 2. General Maintenance of the Hotel Grounds: David is the handy Man and Mal is the grounds Keeper, his responsibilities are to maintain the hotels Half acre grounds. 3. House keeping: Hazel is the hotels House Keeper and ensures the guest house runs smoothly.

Jean the Chambermaid is employed on a part time basis to ensure all the laundry and room preparation is complete for new guests. 4. Bookings: I think Richard should take bookings because he has worked behind a bakery counter and hence has probably developed good customer relations. 5. Management: Richard and Patricia take care of the day to day running and management of the B;B. Looking at the organisation chart of Snooze Cottage and considering Richard and Patricia are considering purchasing a new property I would recommend hiring some new staff for the new premises.

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