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Lesson Objectives


Learn about different types of organizational structures and how the advancement of ICT has impacted on them. Learn about functions of organizations – PowerPoint PPT presentation

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Title: Lesson Objectives

Lesson Objectives
  • Learn about different types of organizational
    structures and how the advancement of ICT has
    impacted on them.
  • Learn about functions of organizations
  • Review and question time
  • Students should be able to name at least two
    organizational structures, list their advantages
    and disadvantages, and discuss the impact of ICT
    on organizational structure. Name and describe
    at least 5 functions of organizations.

Structure of An Organization
Hierarchical Structure
Structure of An Organization
  • Advantages of hierarchical structure
  • An individuals authority and responsibility are
    clearly defined.
  • Effective use of specialist managers is used
  • Employees can become very loyal to their
  • Problems
  • Decisions take long to make and implement
  • There can be poor communication across sections
  • Senior staff can be very remote from the lower
    levels of the structure.

Structure of An Organization
Horizontal structure
Structure of An Organization
  • Advantages
  • Better communication between managers and workers
  • Less bureaucracy and better decision making
  • Lower costs associated with fewer levels of
  • Problems
  • Less prospects of promotion
  • Wide span of control can weaken control of top
    management-more delegation
  • Managers may be responsible for several
    department making their role not very clear.
  • Due to specialization, different departments may
    have little to do with each other.

Structure of An Organization
  • Question How has the development of ICT affected
    organizational structure?
  • ICT has lead to flatter organizational structures
  • ICT enables managers to cope easily with a wider
    span of control
  • Some jobs at a lower level have disappeared,
    i.e., copy typists, due to the growth of word
  • Direct methods of data entry reduce the need for
    clerical staff (scanners, bar codes etc)
  • Roles of middle managers have been eroded because
    ICT enables information to be produced in a form
    suitable for strategic managers directly from the
    operational level.
  • Decision making by ICT systems, i.e., decisions
    regarding granting of loans by banks, and stock
    ordering in supermarkets.

Functions within organizations
  • There are many different departments in an
    organisation that have different functions. Some
    sort out the finances, others are in charge of
    hiring and firing, while some market a product or
  • The main job functions in an organisations are
    listed below
  • Accounts and Finance.
  • Human Resources.
  • Sales
  • Marketing.
  • Research and Development
  • Administration.
  • ICT Services
  • Design
  • Distribution
  • Product provision

Functions within organizations
  • Accounts and Finance
  • This department's function is simple. They deal
    with all the money for the organisation. They
    look after what money comes in and out of the
  • Below are examples of what money matters the
    department looks after
  • Record payments (money) of what they receive from
    its customers for any service or product they
    provide. They will bank any cheques or cash they
    receive from customers.
  • Arrange payment to their suppliers. For example,
    rent, stock, raw materials, telephone bills,
    stationary, utility bills, such as gas,
    electricity, water, etc, etc.
  • Pay staff wages using something called BACS. This
    stands for Banks Automated Clearing System - it
    allows money to be transferred electronically
    from one account to another.
  • Records of all of these transactions are
    important so Inland Revenue (tax man) can
    calculate the correct amount of tax the
    organisation must pay.

Functions within organizations
  • Sales
  • The function of this department is to sell its
    products or services to its customers.
  • Most of you who have part time jobs will work in
    sales. You may work on the shop floor for an
    organisation, e.g. JJB, Top Shop, etc. Your
    responsible for helping customers find what their
    after. You will also be responsible for making
    sure the shop floor is tidy and presentable, as
    well as making sure goods are on display.
  • Other sales-people have slightly different roles.
    think about the roles of sales-people in
    different industries, such as a kitchen design
    company, newspapers, etc. Some sales-people work
    in telesales. They sell goods or services by
    taking orders over a telephone line.

Functions within organizations
  • Marketing
  • The marketing function is to market, advertise or
    promote a product or service. They may do this by
    using the following-
  • Adverts in newspapers
  • On television
  • Using the Internet
  • Bill boards
  • Flyers
  • Post / email (this is called direct marketing)

Functions within organizations
Research and Development This department focuses
on researching new developments, technologies,
techniques, materials to improve the product or
service it provides. This is so they can have an
edge over its competitors and match the needs of
their customers.
Functions within organizations
  • Human Resources
  • Human Resources or HR for short used to named
    personnel. This department deals with its
    employees (those people who work for the
    organisation). They have the following roles
  • Advertise for new jobs (vacancies)
  • Organise the application forms / interviews /
    acceptance letter
  • Handle requests for leave
  • Dealing with disciplinary matters
  • Arranging cover when employees are absent
  • Staff training arrangements
  • Dealing with trade union reps
  • Giving written warning
  • Firing employees
  • This department meets with all the other
    departments to see if all employees are happy
    working, if there are any disciplinary action
    needed towards staff, training requirements, etc.

Functions within organizations
Production(or services provision) This doesn't
apply to organisations that only provide a
service. This department focuses on producing the
product, e.g. on the production line. More and
more machines are taking over in this department.
ICT As the name suggests this department
maintains all the workstations in an
organisation. Design When the research and
development department have completed their work
the Design department work with them to create
the new end product.
Functions within organizations
  • Administration
  • The administration function is usually
    responsible for the day to day running
  • of an organisation.
  • Below is a list of some responsibilities the
    admin department might have
  • Looking after the buildings and facilities
  • Managing cleaning contracts
  • Processing customer ordersKeeping records of
    staff hours / daily transactions
  • Fleet management (organising drivers and
  • A lot of the time the admin department deal with
    keeping records (typing up)
  • and exchanging information between departments.
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