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Organizational Charts

An organizational chart is a diagram of the organization of an enterprise. Its pyramid shape

illustrates the hierarchy system that exists in the organization. The most senior position in theorganization is placed by itself at the apex. The pyramid gets wider towards the bottom depicting

the greater number of workers at its base.

Those who have the power to issue commands have authorityin an organization. In the

organization chart above the sales manager has the authority in the Sales department. Allpersons with the same level of authority are placed at the same level on the chart. For example

the sales manager and the accounts manager have the same level of authority in their various

departments.

Responsibility is the capacity to accept duties and to carry out their tasks. Both sales supervisors

are responsible to the sales manager.

The chart shows the following:

-each persons position

-the number of levels of managers

-to whom each employee is responsible (reports) to

-the span of or (area) of control for senior staff

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Types of Organizational Charts

Line or Direct

The line organizational chart depicts a straight line of command. Authority is said to flow

downwards onlyin the line organization. The line organizational structure is found in schools orin the military.

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Functional Organizational Chart

The Functional organization chart is a diagram of an organization that is arranged by itsfunctions. For example, there is a manager in charge of marketing, and another in charge of

production. This type of organization has an advantage over the Line as experts are appointed to

run each department. All managers report to the General Manager.

The Functional organizational chart combines the straight line of command of the lineorganization with horizontal dotted diagonal lines representing functional authority. The dotted

diagonal lines in the figure above show the authority that the Human Resource Manager has over

other departments. The Human Resource Manager is allowed authority in these department overhuman resource matters only e.g. to hire and fire workers. He therefore cannot give directives on

production or marketing matters.

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Line and Staff Organizational Chart

The Line and Staff organizational chart combines the line and functional organization with theaddition of staff personnel. Staff workers assist and advise line workers. Staff workers include

consultants, advisors, company lawyers, executive secretary, auxiliary workers etc. Staff officers

do not have authority, that is, the power to delegate tasks to subordinates in the organization.Their main role is to advise and assist line officers. This is why there are no vertical lines

connecting staff officers to any other member of staff on the chart. They are therefore, placed at

the side directly below the line officer whom they assist or advise.

Committee Organizational Chart

Committees are advisory bodies. They are usually appointed to advise organizations. Examplesof committees include; parent teachers associations and student councils which are committeeswithin a school organization. Committees usually delegate certain duties to sub-committees. For

example, an executive committee may appoint a finance committee to advise it on financial

matters. Note that an element of the line organization exists in the committee organization as allsub-committees are responsible to the executive committee.

http://wizznotes.com/wp-content/uploads/2012/02/Committee-Organizational-Chart.jpeghttp://wizznotes.com/wp-content/uploads/2012/02/Line-and-Staff-Organizational-Chart.jpeghttp://wizznotes.com/wp-content/uploads/2012/02/Committee-Organizational-Chart.jpeghttp://wizznotes.com/wp-content/uploads/2012/02/Line-and-Staff-Organizational-Chart.jpeg

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What is conflict?Conflict means disagreement.

Sources of Conflict within an Organization

Unfair treatment of workers

Unfair dismissal

Discrimination

Health related issues

The need for protective clothing

Poor ventilation

Harmful fumes from chemicals

Wages and fringe benefits

Nonpayment of allowances

Underpayment

Methods used to gain an upper hand during Periods of Conflict

Workers organize themselves to collectively deal with conflicts. This is done through the trade

union. A Trade Union is an organization of persons employed in an industry who have joinedtogether in order to improve their wages and working conditions.

Methods used by Trade Unions

1. Strikes

2. Sick-out

3. Work-to-rule

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4. Go slow

5. Picketing

Methods used by employers during conflicts

Union busting

Union busting is the prevention by management of the formation of a trade union within its

organization. The employer may explicitly state this to workers or covertly discourage its

formation.

Lock out

A lockout refers to the refusal by an employer to allow workers into the business place during anindustrial dispute. This is a means of coercing workers to comply with management.

Scab labour

This is a derogatory term used to refer to workers hired to replace workers on strike

Strategies used to resolve Conflicts in the workplace

Collective Bargaining

Collective bargaining is the process whereby the union representative on behalf of the employeesand management, negotiate the terms of their agreement which are incorporated in the

employees contract of employment. It is a means to reach an agreement between trade unions

and employers.

The Role/Function of the Trade Union

1. To ensure better wages and working conditions for workers

2. To protect workers against arbitrary disciplinary actions.

3. To deal with grievances in accordance with the grievance procedures

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The Grievance Procedure

A grievance is a complaint of a worker. A worker will have a complaint when:

a. he is treated unfairly. (e.g. cases of discrimination)

b. his health or safety is threatened (e.g. chemicals and dust at work etc)

c. there is a violation of the collective agreement or work rules. (e.g. if employers have not

abided by the agreement between management and the trade union.)

The grievance procedure is a set of steps which employees can use to solve any grievance that

may arise.

STEP 1 - The employee discusses the complaint with his or her supervisor. If the complaint is

not satisfactorily dealt with by the supervisor the employee may take the matter further.

STEP 2 - The employee will discuss the matter with the head of department.

STEP 3 - The employee, along with the union delegate, will discuss the matter with top

management.

STEP 4 - If the grievance still exists, the union official will seek conciliation or mediation from

the Ministry of Labour or any independent body, i.e. the friendly intervention of these bodies

into the dispute for the purpose of adjusting the differences.

STEP 5 - The matter is sent to arbitration, i.e. before the court where the judge will make the

final decision. Therefore both parties; employer and employee must accept the judges decision.

How to build good Management & Staff Relations in an organization.

Good management worker relationship is important for efficiency, productivity and the retentionof staff.

Communication

Managers should not only give directives but encourage feedback from workers. Regularscheduled meetings should allow workers the opportunity to voice their concerns and views.Some managers have an open door policy making them available to all employees.

Motivation

Money is not a motivator for everyone and therefore managers must find ways of encouragingworkers to give their best performance. Other forms of motivation include recognition for a job

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well done. High performing employees can be motivated by promotion, and being named

employee of the month. Allowing employees to be creative and bringing their innovative ideas to

goods and services is also a motivator.

Fairness

It is very important to handle all workers fairly without showing favouritism. If workers perceive

that they are not being fairly treated or that there is favouritism conflicts may arise among

workers and well as between management and workers.

Compassionate

Managers must show care when dealing with workers daily. Workers are not machines and

cannot be treated as such. Managers should try to understand each worker and their various

issues. Workers may have challenges with illnesses, family, financial etc. which may affect theirperformance on the job.

The Role of Teamwork

Many firms adopt a teamwork approach to complete tasks more efficiently. For example a major

Caribbean airline encourages its workers to work as a team to achieve the main task of having

each flight leave on time. Workers therefore move to various positions if needed, to have eachflight leave on time.

Benefits of Teamwork

1. It improves the working relationship among workers

2. It increases communication

3. Skills and knowledge are passed on through the interaction

4. It satisfies the social needs of workers

Groups are formed naturally by persons with similar interest, common goals and similar past

experiences in an organization. The establishment of various clubs, work socials and outings will

encourage greater interaction among workers, better relationships and a teamwork approach tocompleting tasks.

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What is communication?

Communication is defined as a two-way process which involves the conveying of information

from (sender) to (receiver). The need for effective communication is very important whendealing with the human factor from recruitment to retirement in the organization.

For communication to be effective there must be feedback.

Means of Communication1. OralThis includes all types of spoken communication, e.g. interviews and meetings.

2. WrittenThis includes all things that are written, e.g. reports and letters.

3. VisualThis includes all things which can be seen, e.g., posters and films.

The primary objective of communication in any organization is to get work done.

Types of communication

Formal Communication -These are official methods approved by management.

These includes meetings, announcement on notices boards, memoranda, messages over public

address systems, interviews, performance appraisals, company magazines. etc.

Informal Communication -These are unofficial methods of communication.

These include: rumours and the grapevine, secret signs and gestures as well as casual

conversation between employees.

Barriers to Communication

1. Distortion of messages e.g. rumours or the grapevine can easily distort messages.

2. Inappropriate forms of transmission e.g. a notice of a formal meeting must be conveyed in

writing and not by word of mouth. If this type of meeting is not conveyed in writing it may seemcasual and unimportant.

3. Physical barriers e.g. faulty telephone connections, defects in mechanical or electronicequipment, and poor postal services.

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Management Information System

Managers need information to assist them in making important timely decisions and predictions

for future plans. Management information system is a computer based business informationsystem designed to produce information needed for the successful management of a department

or business (Before MIS managers had to rely on manually prepared reports at intervals).However, with increased global competition firms must be more proactive in the market place.Information must therefore be at the managers disposal at any point in time when needed.

The manager of a retail store may require at any point in time information on sales volume forparticular items so that decisions on future purchases can be made. A computer programme is

then designed to meet the specifications of the report which the manager will need. The format

and the content of each report required will be used to design the programme. The manager will

then be able to receive the information required by requesting the specific report. The necessarydata will be retrieved from the data base, processed and automatically presented in the format

specified.

Benefits

MIS is very cost effective as it reduces the need for labour to compile and analyze data. Once

information enters a companys database, MIS will compile and analyze the data to give

managers meaningful information to make decisions. Data e.g. items sold or stock entering thestock room will be inputted by the various department staff. MIS will have required reports

available in a much shorter time than manual preparation of reports.

MIS is a decision support system used to analyze business activities. MIS at anytime can provide

information required for decision making. This can be used to assess present performance and

therefore assist managers to improve the companys performance so that the firm is morecompetitive.

Challenges

Although very beneficial and is therefore desirable for businesses MIS is an expensive venture

and small firms will be challenged to set up this system. In addition to the set up cost for MISbusiness will have to consider the continuous maintenance costs. The cost of training present

employees to interact with the new system must also be factored in to the total cost.

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Reasons people work:

Managers must be aware of the various needs of workers and why they work. If these needs are

adequately satisfied through work, then workers will be motivated to improve performance.People work in order to satisfy the following needs:

Basic Needs

Employment is very important for the economic survival of individuals. If employees receiveadequate pay then these needs will be satisfied. Some employees may also receive allowances

and fringe benefits. Once the basic needs of survival (food, clothing and shelter) are met,

employees will be aware of higher level needs.

Security Needs

A job should not only provide adequate pay to satisfy basic needs but it should also give workers

security. This need can be satisfied through the provision of health benefits, insurance andpensions.

Social Needs

The employee spends on average eight hours each day at work. We are social beings and

therefore need human interaction. This need can be satisfied by the establishment of after work

activities and through a teamwork approach to accomplishing tasks.

Self-Esteem Needs

Managers can satisfy this need through promotion and ways of recognizing those who haveperformed well.

Self-actualizing Needs

Thisneed is satisfied by giving subordinates opportunitiesto create and pursue innovative ideasso that they can realize their capacities to the fullest.