Organization and Management

Organisational chart. A diagram showing roles and reporting relationships. Lines connect each subordinate to their direct manager.

Hierarchy. The layers of authority. CEO at the top → senior managers → middle managers → supervisors → operatives.

Span of control. How many subordinates DIRECTLY report to a manager. WIDE span = many; NARROW span = few.

Chain of command. Number of layers from top to bottom. TALL structure = many layers; FLAT structure = few.

Wide span / flat structure pros: cheaper (fewer managers), faster top-to-bottom communication, more autonomy for staff. Narrow span / tall structure pros: closer supervision, easier control of complex operations, clearer career paths.

Cambridge tip. Mark scheme distinguishes span (sideways) from chain (vertical). Mixing them is a common error.

Henri Fayol's classic five functions:

Planning. Set objectives; decide HOW to achieve them. Includes long-term strategy and short-term action plans.

Organising. Arrange resources (people, equipment, finance) to deliver the plan.

Coordinating. Ensure different parts of the organisation work TOGETHER toward the same goals.

Commanding (or leading). Give clear instructions; lead and motivate teams.

Controlling. Measure actual performance against plan; identify variances; take corrective action.

Cambridge tip. Mark scheme often expects FOUR or FIVE functions named with a brief description of each.

Autocratic. Manager makes decisions ALONE; tells subordinates what to do; little consultation. Fits: emergencies, military, safety-critical work, inexperienced staff.

Democratic. Manager CONSULTS subordinates; includes them in decisions; explains reasoning. Fits: creative roles, professional teams, when buy-in matters for execution.

Laissez-faire. Manager sets BROAD GOALS and lets subordinates choose HOW. Hands-off. Fits: highly experienced experts (researchers, senior consultants).

Reality. Best leaders FLEX between styles depending on the situation, the team, and the urgency. There's no single 'best' style.

Cambridge tip. When asked to recommend a style for a scenario, name it AND justify why it fits. 'Democratic is best because it's friendly' loses marks; 'democratic suits this professional team because their buy-in is essential for execution' scores full.

A trade union is an organisation of workers who join together to bargain collectively with employers.

What unions do.

• Negotiate over PAY and conditions.
• Represent individual members in disputes (grievances, dismissal).
• Campaign on broader workplace issues (safety, equality).
• Provide legal advice and training.

Industrial action. When negotiation fails, unions can use:

• Strike — workers stop work entirely.
• Work-to-rule — workers do only the bare minimum specified in their contract.
• Overtime ban — workers refuse to do extra hours.
• Go-slow — workers deliberately reduce output.

Effects on the business.

• Wage rises raise costs.
• Strikes lose production and damage customer relationships.
• BUT well-managed union relationships can improve communication, productivity and morale.

Cambridge tip. Top-band candidates note that trade unions and management aren't always adversarial — partnership relationships exist where both sides benefit.