Evaluate Organisational Structure and Delayering Impact

Business Revision Week 2 Human Resource Management Organisational structure Read the notes on this page and attempt all the questions Name: ____________ ____________ Class: 11Y Due date: 07 Feb The diagram on the right shows a manager with a wide span of control. + Assistants given more opportunity to make decisions + Number of managers reduced, which reduces overheads - A poor manager may demotivate a large number of employees - The manager has a high workload to manage

Can I evaluate an organisational structure? The idea of providing organic snacks started in 2008. With the growth of multinational fast food companies, Helen and Terry saw a gap in the market to set up Organic Snacks Ltd, a restaurant that would provide healthy, tasty and well-presented lunches and snacks that could be served very quickly. The initial restaurant proved to be very successful and by the year 2010, another six outlets had been opened in the local area. Quality of food has always been very important to the company and as a result, where possible, foods are sourced locally from organic suppliers. Each restaurant has an overall manager, two assistant managers, one in charge of the kitchen and one in charge of the dining area. As well as the staff who serve the customers, there are also two cleaners and two kitchen porters employed with a separate supervisor. Their role is to keep the tables clear and manage the washing up and deliveries. The cost of each restaurant is high, but the organisational structure found in each location has meant that standards of service have been consistently excellent. Prices are however, higher than rival fast food outlets, but profits for the company have been good. With a strong brand established, Organic Snacks Ltd has continued to expand in the region and another twenty similar restaurants have been opened. Customers have liked that fact that they know what the menu will be and the standard of service that will be provided. The company now employs a regional manager to make sure that each restaurant is maintaining the same quality. Any changes to the restaurants are communicated from Terry and Helen, the directors and only shareholders in the firm, through the regional manager to the managers and workers in each individual restaurant. Evaluate the organisational structure of Organic Snacks. Include the points within the target response box. Target Response Key Points: use a paragraph to describe the following Standards and accountability Communication and speed of communication Cost of the structure ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ Evaluate the impact of delayering the regional manager of Organic Snacks and delegating responsibility to the restaurant managers. Include the points within the target response box. Target Response Key Points: use a paragraph to describe the following Standards and accountability Communication and speed of communication Cost of the structure ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ ________________________________________________________ Match it! Match the key term to the description a. giving authority to a member of staff down the structure Span of control Chain of command b. decision making is delegated c. senior managers take all the important decisions Delayering d. the lines of authority within the business along which instructions are passed Delegation e. when a layer of management is removed from the hierarchy Centralisation f. the number of employees for which a manager is responsible Decentralisation