2.2. Organisation and management
- Syllabus
- 0264–2027–2028
- Topic
- 2.2
- Level
- —
Learning objectives
2.2.1Simple organisational structures• the main functional areas of a business, e.g. operations, marketing, finance, human resources• simple hierarchical structures: tall and flat levels of hierarchy, long and short chains of command, wide and narrow spans of control• interpret simple organisational charts• different ways of flexible working, e.g. home working and flexible hours• advantages and disadvantages of part-time employees and full-time employees2.2.2The functions of management• planning, organising, coordinating, commanding and controlling• advantages and disadvantages of delegation2.2.3Leadership styles• the main leadership styles: autocratic, democratic and laissez-faire• advantages and disadvantages of the main leadership styles• recommend and justify an appropriate leadership style for a given situation2.2.4Why reducing the size of the workforce may be necessary• concept of downsizing• reasons for reducing the size of the workforce, e.g. automation, reduced demand for products, need to lower costs• concept of redundancy• recommend and justify which employee(s) to make redundant in a given situation2.2.5The role of trade unions• what a trade union is• benefits to employees of being a trade union member
Read an organisational structure
| Function | Main job |
|---|---|
| operations | produce and deliver goods or services |
| marketing | research markets and manage product, price, promotion and place |
| finance | manage budgets, cash, records and funding |
| human resources | recruit, train and support employees |
An organisational chart shows authority and reporting. Read from a role upward to find its line manager; roles on the same level have similar authority. A tall structure has more hierarchy levels, a longer chain of command and usually narrower spans of control; a flat structure has fewer levels, shorter chains and wider spans.
| Arrangement | Possible advantage | Possible disadvantage |
|---|---|---|
| home working | lower travel or premises cost and wider recruitment | isolation, supervision and communication difficulties |
| flexible hours | matches employee and demand needs | scheduling and coordination become harder |
| part-time staff | flexible capacity and lower total pay | less continuity and more training per hour worked |
| full-time staff | continuity, availability and commitment | higher fixed labour cost and less flexibility |
Span of control is the number of direct reports, not total employees. A flat structure is not automatically informal or better; suitability depends on work complexity and manager capability.
Use the five management functions
| Function | Management question |
|---|---|
| planning | What objectives and actions are needed? |
| organising | Which resources, roles and structure will deliver them? |
| coordinating | How will activities and departments work together? |
| commanding | What direction and decisions must be communicated? |
| controlling | Are results on target, and what correction is needed? |
Delegation gives a subordinate authority to perform a task while the manager remains accountable. It can speed decisions, develop and motivate employees, and free managers for other work; it can also create mistakes, inconsistency or loss of control when ability, instructions or monitoring are weak.
Delegation transfers authority for the task, not the manager's final accountability. It is not simply giving unwanted work away.
Match leadership style to the situation
| Style | Decision pattern | Strength | Risk |
|---|---|---|---|
| autocratic | leader decides | fast, clear control | low input and motivation |
| democratic | employees contribute before decisions | ideas, commitment and information | slower and possible disagreement |
| laissez-faire | employees receive high autonomy | creativity and expert ownership | weak coordination or unclear direction |
Justify a style using urgency, risk, employee skill and experience, need for creativity, decision importance and workforce expectations. A safety crisis may favour autocratic direction; a skilled design team may benefit from democratic or carefully bounded laissez-faire leadership.
No style is always best. Laissez-faire still needs objectives and accountability, while democratic leadership does not mean every decision is decided by vote.
Make a justified downsizing decision
Downsizing reduces the workforce, often because automation lowers labour need, demand has fallen or costs must be reduced. Redundancy occurs when a job is no longer required; it is not the same as dismissal for misconduct.
A fair recommendation uses job needs and objective criteria such as relevant skills, performance, versatility, attendance and cost, while following contracts and law. Assess redundancy payments, lost knowledge, morale, workload, service quality and whether the saving is sustainable.
Choosing only the highest-paid or newest employee may be unlawful, unfair or strategically harmful. The role must be evaluated against future business needs, not personal preference.
Explain how trade unions support employees
A trade union is an organisation that represents employees' interests. By acting collectively, members may gain more bargaining power than an individual employee.
A union can negotiate pay, hours and conditions; represent members in grievances or disciplinary cases; advise on employment rights; press for safer work; provide legal or other member support; and communicate employee concerns to management.
Union membership does not guarantee every demand or remove the employer's right to manage. Outcomes depend on membership, negotiation, law, employer finances and the cost of industrial action.