I need to continue my work for those two businesses, and explain understand functional activities and organisational structures. Organisational Structures – Both Microsoft and Oxfam need to create a structure that will enable them to better meet the needs of their stakeholders. E. g. an important part of the structure of a private Company is the Board of Directors with the MD at the top. By giving high priority to the Board means that the interests of the owners (stakeholders) are given priority.

Therefore the customers are very important organisational structure needs to ensure there are clear links to customers. E. g. the organisations can give priority to the position of customer service managers. Functional Activities – The section describes the key functions of a modern business. The businesses are commonly organised in departments carrying out these key functions. E. g. the functions are human resources, finance and research and development etc. Function’s name Description Definition Microsoft Oxfam Finance

They are keeping records of financial activity and to provide managers with information and helping to create financial plans. Co – ordinates the revenues and expenses across all the other functional areas of the business so that it will have sufficient funds to survive and generate profits to reward its reward. Yes Yes Human resources management Helping other functional managers to develop their work, such as helping them to recruit new staff. HRM will be responsible for all ideas of people management in a firm.

The kind of work covered in the human resources function might include the following. Yes Yes Research and development R;D department enables new products and processes and then seeks to develop them into finished article. They investigate new goods and process and then seek to develop them into the finished article. E. g. software’s manufacturers are researching environmentally friendly software’s that run on computers programme, electricity. Yes Yes Production Production manager of a Microsoft is responsible for making sure raw materials are processed into finished goods well.

The organising the manufacture of the goods range to consistently high quality standards. How range of functional activities are managed in small and micro businesses Just a business doesn’t mean that it shouldn’t have specialists. It is not possible for one or two people to handle all of the necessary functions listed above. The specialists may need to be hired to manage important activities, such as marketing or IT. Some small businesses also contract out some of their functions. E. g. they might pay an accountant to produce the annual accounts – paying them for just a few days work.

Organisational structures: The structure of the two organisations is best exposed by probing the organisational chart. The chart shows the main parts of the business, and the relationship between the various parts. Note that necessary parts of the structure are the production department and the sales department selling direct to other business. Purposes: If we look at an organisational chart it should give us a clear picture of what the relevant sections of the business are and who reports to whom.

When Microsoft refers to line management and is talking about a person who is directly responsible for somebody else. E. g. the production manager reports to the general managers. Static and dynamic environments: for example, in Microsoft the sales can have peaked and remain steady over a period of time. The organisation can therefore feel little need to restructure. In Oxfam, dynamic environments the pace of change may be rapid. The structures are required that can enable rapid change. The flexible teamwork structures are more beneficial in dynamic environment.

The team members may be encouraged to come up with ideas for themselves rather than being told what to do. Strategic plans: The kind of business structure also depends on business plans. E. g. Microsoft that seeks to become more market oriented will develop structures that place an emphasis on marketing and customer focus. Both Microsoft and Oxfam seek to develop globally will develop structures that allow geographical specialisation. If strategy related to increasing sales then the number of sales people is likely to increase in Microsoft.