WEEK FOUR
STRUCTURE OF A BUSINESS
CONTENT
- Structure of Business
- Organization Chart
- Types of Organizational Structure.
Organizational structure is the framework by which tasks are divided, grouped and co-ordinated. It entails the division of the activities of a business organization into departments, division, units and sub-units and the allocation of positions, responsibilities and authorities to the official of a business.
USES (PURPOSES) OF AN ORGANISATION CHART
- It shows the line of authority and responsibilities in an organization.
- It shows the relationship between the various departments and functionaries in an organization.
- It is used to show the channel of communication/information within the organization.
- It shows the various positions in an organization.
- It also shows the status and role of each member of organization.
- It shows the span of control of each supervisor or manager.
- The whole organization structure of the form can be seen at a glance.
- It is easier to analyze and review the structure of the organization when it is represented graphically.
ORGANIZATION CHART OF XYZ LTD.
Shareholders
Board of Directors
Managing Directors/
Chief Executive Officer
General Manager General Manager General Manager
Admin. Finance Production
Manager Manager Manager Manager
Admin Accounts Cosmetics Food/Drinks
Admin Account Cashiers
Officers Clerks
EVALUATION
- What is an Organization Chart?
- Draw the organization chart of a named business organization.
TYPES OF ORGANISATIONAL STRUCTURE
- Line Organization: This refers to the direct working relationship between the subordinates and the superiors in which the line of authority and responsibility flow from the top executives to the lowest subordinates.
- Functional Organization: This applies where the activities of the organization are arranged according to the basic functions of the business undertaken. Therefore similar or related activities are grouped together under each department.
- Committee Organization: This applies where a group of people are appointed to carry out special duties. A committee, for instance may be set up to make recommendations or to execute projects.
EVALUATION
- Explain the term organizational structure
- List and explain three types of organizational structure.
READING ASSIGNMENT
Essential Commerce forsenior secondary schools by O. A. Longe page 231-240WEEKEND ASSIGNMENT
Use the chart below to answer all the questions that follows.
ORGANIZATION CHART OF CADBURY NIGERIA PLC
- In which of the boxes in the organization chart would you locate the shareholders of CADBURY NIGERIA PLC. (a) F (b) X (c) V (d) T
- The position of the Department Manager would be located in Box
(a) T (b) X (c) W (d) U
- The Board of Directors of Cadbury Nigeria Plc. Would be in box
(a) V (b) U (c) W (d) T
- The position of the Accounts Clerk would be located in box.
(a) F (b) T (c) V (d) U
- The Managing Director would be located in box.
(a) T (b) W (c) V (d) U
THEORY
- What is an Organization Chart?
- State two functions of the Administration Department of a business organisation.