Organisational Structures

As businesses grow, organisational structures can be used, and businesses can choose different types of organisational structure:

Functional structure

A functional structure exists when a business structures itself by the four main business functions of human resources, finance, marketing, and operations.

Product structure

A product structure exists when a business structures itself around the products or services it produces, so there will be staff from each function working in a team assigned to each business product.

Matrix structure

A matrix structure exists when a business structures itself around a matrix where each employee may report to two or more supervisors, for example where one supervisor has knowledge of a product or project and another supervisor has knowledge of a business function.

Regional structure

A regional structure exists when a business structures itself around a region, so there will be staff from each function working in a team assigned to each region.

Choosing organisational structure

When choosing the most appropriate organisational structure, a business must consider a range of different influences including the industry, the actions of competitors and the market conditions in which the business operates.
- For example, a fashion brand may have functional directors working in their accessories team and functional directors working in their outdoor clothing team which is an example of a product structure.

Network Analysis

When implementing a new strategy, managers and leaders can use network analysis to manage and plan the different stages and elements of a project.

Network analysis

Network analysis is the use of a network analysis diagram to visually display the different elements of a project to identify the quickest way of completing all activities.

Network analysis diagram

In a network analysis diagram, circles, known as nodes, are used to show the start and end of an individual activity.
In a network analysis diagram, nodes have three numbers In a node, the left number is the node reference, used for information.
In a node, the upper-right number is the earliest start time (EST) the next activity can begin based on the previous activity finishing.
In a node, the lower-right number is the latest finish time (LFT) of the previous activity to not delay the overall project.
In a network analysis diagram, straight arrows are used to show each individual activity within the overall project.

Understanding timings

Using network analysis allows managers and leaders to identify activities which can overrun without impacting the finish date of the whole project. This extra time is known as float time and is the difference between the latest finish time of the previous activity and the earliest start time of the next activity with the activity duration deducted.

Advantages of network analysis

Network analysis allows businesses to calculate float time and identify activities which can be delayed or overrun without affecting the overall project, which allows managers and leaders to move resources if they need to.
Network analysis allows businesses to calculate the critical path which is the list of activities which have no float time and cannot be delayed without delaying the overall project, which allows managers to prioritise.
Network analysis allows managers and leaders to identify whether different tasks can be done at the same time to minimise the overall duration of project implementation.

Disadvantages of network analysis

Network analysis uses forecasted activity durations and these forecasts may be inaccurate.
Network analysis does not guarantee successful strategy implementation as the business still needs adequate resources and managerial experience to implement the strategy successfully.

1Business Organisation & Environment

1.1Introduction to Business Management

1.1.1Why Businesses Exist & Sectors

1.2Types of Organisation

1.2.1Sole Traders

1.2.2Limited Liability

1.2.3Non-Profit

1.2.4Franchising

1.2.5End of Topic Test - Franchising

1.3Organisational Objectives

1.3.1External Environments

1.3.2Business Mission & Corporate Objective

1.3.3Mission, Corporate Objectives & Strategy

1.3.4SWOT Analysis

1.3.5End of Topic Test - SWOT Analysis

1.4Stakeholders

1.4.1Stakeholders

1.5External Environment

1.5.1Social & Technological Environment

1.5.2Lifestyle & Technological Environment

1.5.3Corporate Social Responsibility

1.5.4Economic Environment

1.5.5Political & Legal Change

1.6Growth & Evolution

1.6.1Growth & Retrenchment

1.6.2Challenges of Growth

1.6.3Growth Models

1.6.4End of Topic Test - Diseconomies of Scale

1.6.5Internationalisation

1.6.6Sourcing Resources & Entering Markets

1.6.7End of Topic Test - Internationalisation

1.6.8Managing Internationalisation

1.6.9Impact of Internationalisation

1.7HL Only: Organisational Planning Tools

1.7.1Organisational Planning Tools

2Human Resource Management

2.1Functions & Evolution of Human Resource Management

2.1.1Setting Human Resource Objectives

2.1.2Human Resource Management

2.1.3Labour Turnover & Retention

2.1.4Labour Productivity

2.2Organisational Structure

2.2.1Organisational Structures

2.3Leadership & Management

2.3.1Managers

2.3.2Management Theories

2.3.3End of Topic Test - Management

2.4Motivation

2.4.1Motivating & Engaging Employees

2.4.2Taylor's Theory

2.4.3Maslow's Theory

2.4.4Herzberg's Theory

2.4.5Different Incentives

2.4.6Evaluating Incentives

2.5Organisational (Corporate) Culture

2.5.1Managing Organisational Culture

2.5.2Organisational Structures

2.6HL Only: Industrial/Employee Relations

2.6.1Improving Employer-Employee Relations

2.6.2Case Study - The Winter of Discontent

3Finance & Accounts

3.1Sources of Finance

3.1.1Internal Sources of Finance

3.1.2External Sources of Finance

3.1.3Factors for Financing

3.1.4End of Topic Test - Debt

3.2Costs & Revenues

3.2.1Costs & Revenues

3.3Break-Even Analysis

3.3.1Profit

3.3.2Break-Even Analysis

3.4Profitability & Liquidity Ratio Analysis

3.4.1Profitability Analysis

3.5Cash Flow

3.5.1Cash Flow

3.5.2Solutions to Cash Flow Problems

3.5.3Improving Cash Flow & Profits

3.6HL Only: Investment Appraisal

3.6.1Investment Appraisal

3.7HL Only: Budgets

3.7.1Cash-Flow & Budgets

4Marketing

4.1The Role of Marketing

4.1.1Setting Marketing Objectives

4.1.2Market Calculations

4.2Marketing Planning

4.2.1Marketing Mix

4.2.2Segmentation

4.2.3Niche & Mass Markets

4.3Market Research

4.3.1Market Research

4.3.2Market Mapping

4.3.3Methods of Market Research

4.4The 4 Ps

4.4.1Product Decisions

4.4.2Pricing Decisions & Price Skimming

4.4.3Pricing Decisions & Price Penetration

4.4.4End of Topic Test - Pricing & Competition

4.4.5Promotional Decisions

4.4.6Promotional Decisions 2

4.4.7Promotional Decisions 3

4.4.8Digital Marketing

4.4.9Evaluating Digital Marketing

4.4.10Case Study - The Marketing Mix & Promotion

4.4.11Place & Distribution

4.5HL Only: The Extended Marketing Mix

4.5.1The Extended Marketing Mix

4.6HL Only: International Marketing

4.6.1International Marketing

4.7E-Commerce

4.7.1E-Commerce

5Operations Management

5.1The Role of Operations Management

5.1.1Setting Operational Objectives

5.2Production Methods

5.2.1Production Processes Overview

5.2.2Production Processes

5.2.3Production Efficiency

5.2.4Technology & Production

5.3HL Only: Lean Prodution & Quality Management

5.3.1Importance of Quality

5.3.2Measuring & Identifying Quality

5.3.3Total Quality Management

5.3.4Evaluating Total Quality Management

5.3.5Case Study - Toyota Production System

5.4HL Only: Production Planning

5.4.1Capacity

5.4.2Productivity & Efficiency

5.4.3Technology & Efficiency

5.4.4Improving the Supply Chain

5.4.5Inventory

5.4.6Outsourcing

5.5HL Only: Research & Development

5.5.1Organisational Planning Tools

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