2.2.1
Internal Organisational Structures
Internal Organisational Structures
Internal Organisational Structures
An organisational structure is the system that defines a hierarchy in an organisation. An organisational structure identifies every job in an organisation, the responsibilities of each job and how each job is related to other jobs.


Hierarchy
Hierarchy
- A hierarchy just means layers, with certain jobs within the organisation having authority over others.
- Jobs higher up in the hierarchy will therefore have more power in decision making.
- The manager of a football team manages the players and guides them on what to do in a game. Jose Mourinho manages Paul Pogba in the hierarchy at Manchester United.


Directors
Directors
- Directors are at the top of an organisation’s hierarchy. They have the most influence over a company’s decisions.
- Directors decide what the firm’s strategy is and make important decisions for the business as a whole.


Managers
Managers
- Managers are the next rung down on the ladder.
- They help to communicate the strategy of the firm to their subordinates (people below them in the hierarchy).
- They also organise the people below them in the hierarchy (span of control) to achieve the firm’s objectives.
- Note – there may be more than 1 layer of managers within a firm.


Supervisors
Supervisors
- Supervisors are the lowest level of people in a hierarchy that are still responsible for managing other people.
- They manage the people at the lowest level of the organisation.
- These people usually manage specific projects that are conducted (done) in small teams.


Operatives
Operatives
- Operatives are at the lowest level in an organisation. These people are not responsible for anyone else.
- In a hotel, a normal cleaner is usually an operator.
- Similarly in a restaurant, a pot washer is usually an operative and does not manage anyone else.
- Factory workers are often operatives.
1Understanding Business Activity
1.1Business Activity
1.2Classification of Businesses
1.3Enterprise, Business Growth & Size
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Different Businesses Have Different Objectives
1.3.4Business Objectives Change Over Time
1.3.5End of Topic Test - Business Objectives
1.3.6Enterprise
1.3.7Risks
1.3.8Rewards
1.3.9Entrepreneur
1.3.10Role of the Entrepreneur
1.3.11Encouragement of Enterprise
1.3.12Business Plans
1.3.13Advantages & Disadvantages of a Business Plan
1.3.14The Main Parts of a Business Plan
1.3.15Methods of Measuring Business Size
1.3.16Business Expansion - Internal Expansion
1.3.17Advantages of External Expansion
1.3.18Disadvantages of External Expansions
1.3.19Small Businesses
1.3.20Reasons for Business Failure
1.4Types of Business Organisation
1.4.1Sole Traders
1.4.2Partnerships
1.4.3Limited Companies
1.4.4Private Limited Companies
1.4.5Public Limited Companies
1.4.6Unlimited vs Limited Liability
1.4.7Not For Profit
1.4.8Franchising
1.4.9End of Topic Test - Business Ownership
1.4.10Application Questions - Business Ownership
1.4.11Diagnostic Misconceptions - Company vs Business
2People in Business
2.1Human Resource Management (HRM)
2.2Organisation & Management
2.3Methods of Communication
3Marketing
3.1Marketing & the Market
3.2Market Research
3.3Marketing Mix
3.3.1The Product Life Cycle
3.3.2Product Design
3.3.3Product Portfolio & The Boston Matrix
3.3.4Benefits & Risks of New Products
3.3.5Extension Strategies
3.3.6Price
3.3.7Pricing - Skimming & Penetration
3.3.8Competitive and Cost-Plus Pricing
3.3.9Market Mapping - Price vs Quality
3.3.10Place
3.3.11Manufacturer-Wholesalers-Retailers-Customers
3.3.12Manufacturer-Retailers-Customers
3.3.13Direct to Customers
3.3.14Promotional Methods
3.3.15Reasons for Promotion
3.3.16Advertising
3.3.17Advertisement - Product Placement
3.3.18Public Relations
3.3.19Sales Promotion
3.3.20Sponsorship
3.3.21Social Media
3.3.22Promotional Mix
3.3.23E-Commerce and M-Commerce
3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce
3.3.25End of Topic Test - Marketing Mix
3.3.26Grade 9 - Marketing Mix
3.3.27Diagnostic Misconceptions - Decreasing Price
3.3.28Diagnostic Misconceptions - Advertise vs Promote
3.3.29Diagnostic Misconceptions - Social Media
3.3.30Marketing Strategy
3.3.31Entering Foreign Markets
3.4Legal Controls
4Operations Management
4.1Production of Goods & Services
4.2Cost, Scale of Production & Break-Even Analysis
4.3Achieving Quality Production
4.4Location Decisions
5Financial Information & Decisions
5.1Business Finance
5.2Cash Flow Forecast
5.3Profit & Loss
5.4Statement of Financial Position
6External Influences on Business Activity
6.1Economic Issues
6.2Business & the International Economy
6.3Business & the Environment
6.4Business & Ethical Issues
6.5Pressure Groups
Jump to other topics
1Understanding Business Activity
1.1Business Activity
1.2Classification of Businesses
1.3Enterprise, Business Growth & Size
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Different Businesses Have Different Objectives
1.3.4Business Objectives Change Over Time
1.3.5End of Topic Test - Business Objectives
1.3.6Enterprise
1.3.7Risks
1.3.8Rewards
1.3.9Entrepreneur
1.3.10Role of the Entrepreneur
1.3.11Encouragement of Enterprise
1.3.12Business Plans
1.3.13Advantages & Disadvantages of a Business Plan
1.3.14The Main Parts of a Business Plan
1.3.15Methods of Measuring Business Size
1.3.16Business Expansion - Internal Expansion
1.3.17Advantages of External Expansion
1.3.18Disadvantages of External Expansions
1.3.19Small Businesses
1.3.20Reasons for Business Failure
1.4Types of Business Organisation
1.4.1Sole Traders
1.4.2Partnerships
1.4.3Limited Companies
1.4.4Private Limited Companies
1.4.5Public Limited Companies
1.4.6Unlimited vs Limited Liability
1.4.7Not For Profit
1.4.8Franchising
1.4.9End of Topic Test - Business Ownership
1.4.10Application Questions - Business Ownership
1.4.11Diagnostic Misconceptions - Company vs Business
2People in Business
2.1Human Resource Management (HRM)
2.2Organisation & Management
2.3Methods of Communication
3Marketing
3.1Marketing & the Market
3.2Market Research
3.3Marketing Mix
3.3.1The Product Life Cycle
3.3.2Product Design
3.3.3Product Portfolio & The Boston Matrix
3.3.4Benefits & Risks of New Products
3.3.5Extension Strategies
3.3.6Price
3.3.7Pricing - Skimming & Penetration
3.3.8Competitive and Cost-Plus Pricing
3.3.9Market Mapping - Price vs Quality
3.3.10Place
3.3.11Manufacturer-Wholesalers-Retailers-Customers
3.3.12Manufacturer-Retailers-Customers
3.3.13Direct to Customers
3.3.14Promotional Methods
3.3.15Reasons for Promotion
3.3.16Advertising
3.3.17Advertisement - Product Placement
3.3.18Public Relations
3.3.19Sales Promotion
3.3.20Sponsorship
3.3.21Social Media
3.3.22Promotional Mix
3.3.23E-Commerce and M-Commerce
3.3.24Benefits & Drawbacks of E-Commerce and M-Commerce
3.3.25End of Topic Test - Marketing Mix
3.3.26Grade 9 - Marketing Mix
3.3.27Diagnostic Misconceptions - Decreasing Price
3.3.28Diagnostic Misconceptions - Advertise vs Promote
3.3.29Diagnostic Misconceptions - Social Media
3.3.30Marketing Strategy
3.3.31Entering Foreign Markets
3.4Legal Controls
4Operations Management
4.1Production of Goods & Services
4.2Cost, Scale of Production & Break-Even Analysis
4.3Achieving Quality Production
4.4Location Decisions
5Financial Information & Decisions
5.1Business Finance
5.2Cash Flow Forecast
5.3Profit & Loss
5.4Statement of Financial Position
6External Influences on Business Activity
6.1Economic Issues
6.2Business & the International Economy
6.3Business & the Environment
6.4Business & Ethical Issues
6.5Pressure Groups
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