ZIMSEC O Level Business Studies Notes: Organisational Charts
- These are concepts that are related with how business organisations operate and are organised
- Power- is the ability or capacity to influence others
- For example charismatic leaders like Adolf Hitler could get people to do what they wanted
- Authority-is the legitimate exercise of power
- Authority is institutionalized power that is inherent in a given position/title
Power | Authority |
---|---|
Is derived from an individual's personal characteristics for example charisma | Is derived from an individual's position within the organisation for example the Managing Director, A commanding officer or President |
Is based on the individual's personal ability or capacity to influence others | Is based on position occupied by the individual and the rights of that position |
It's scope is not defined or limited | It's scope is limited and defined |
Is always innate in an individual | Is awarded to the individual when they assume the relevant position |
Does not come with a title, rank or designation | Usually comes with a rank, title or disignation |
- Authority is often associated with titles such as Marketing Manager
- It also comes with responsibility
- Authority has a defined scope or boundaries
- The authority and scope of a given position varies from organisation to organisation
- It is determined by each organisation’s rules and its culture
- Authority might also be delegated
- Responsibility- is the duty or obligation to perform a given task
- It is the duty to fulfil one’s allocated tasks
- Once an individual has been given a task they ought to fulfil it
- Responsibility comes with authority
- An individual must always be given authority commensurate to their responsibilities
- Otherwise that individual will not be able to fulfil their responsibility
- Failing to fulfil one’s responsibility results in some form of punishment
- Span of control-the number of subordinates that report to and fall under the direct supervision of a given superior/manager
- It is also sometimes used to refer to the number of subordinates that a given manager can directly control
- The ideal span of control varies and it is determined by:
- Organisational culture
- Geographical spread of the organisation
- Skills and ability of the supervisor
- Required administrative tasks
- Complexity of the job involved complex tasks require constant supervision hence require a lower span of control
- Routine tasks require minimum supervision hence can have a wider span of control
- The level of skill of the subordinates
- The span of control for the Managing Director is 4
- A span of control can be either wide or narrow
- A small span of control is known as a narrow span of control
- A large span of control is known as a wider span of control
To access more topics go to the O Level Business Notes page.