Week 4 – SS3 First Term Commerce Notes

 WEEK FOUR
STRUCTURE OF A BUSINESS
CONTENT

1. Structure of Business
2. Organization Chart
3. 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

1. It shows the line of authority and responsibilities in an organization.
2. It shows the relationship between the various departments and functionaries in an organization.
3. It is used to show the channel of communication/information within the organization.
4. It shows the various positions in an organization.
5. It also shows the status and role of each member of organization.
6. It shows the span of control of each supervisor or manager.
7. The whole organization structure of the form can be seen at a glance.
8. 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

1. What is an Organization Chart?
   
2. Draw the organization chart of a named business organization.
   

 TYPES OF ORGANISATIONAL STRUCTURE

1. 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.
2. 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.
3. 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
   

4. Explain the term organizational structure
5. List and explain three types of organizational structure.

    READING ASSIGNMENT
   Essential Commerce forsenior secondary schools by O. A. Longe page 231-240

    WEEKEND ASSIGNMENT
   Use the chart below to answer all the questions that follows.

ORGANIZATION CHART OF CADBURY NIGERIA PLC




                     


 

1. 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
2. The position of the Department Manager would be located in Box

(a) T (b) X (c) W (d) U

1. The Board of Directors of Cadbury Nigeria Plc. Would be in box

    (a) V (b) U (c) W (d) T

1. The position of the Accounts Clerk would be located in box.

    (a) F    (b) T    (c) V    (d) U

1. The Managing Director would be located in box.

    (a) T    (b) W    (c) V    (d) U

 THEORY

1. What is an Organization Chart?
2. State two functions of the Administration Department of a business organisation.