NCV 2 Business Practice Hands-On Support - Module 3

Business Practice 2Module 3

Investigate the structure of an organisation as a

workplace

Outcomes1. Explain the concept of core business activities within

an organisation

2. Describe the process within a selected core function

3. Describe examples of the way in which a selected core function add value to the organisation

4. Describe the concept of support business functions

5. Describe the process within a selected support unit

6. Describe the relationships between the different activities in a selected business (Organisational structure)

Core business activitiesAn organisation’s core activities may be summarised as

follows:

• Receiving, storing and distributing all materials necessary for manufacturing the product.

• Operations or production - all activities that are involved in the manufacturing of the product or delivery of the service.

• Distribution of the product to those people who buy the product.

• Marketing and sales of the product.

• Service of the product: e.g. installation, repairs and supply of parts.

Departments• Purchasing – ordering and receiving raw

materials

• Production – manufacturing the products

• Marketing – distribution and selling of products

Marketing department• Tracking the consumer

• Product development

• Pricing of products and services– Cost price of the product– Market price of the product– Target price

• Distribution channels– Manufacturer-consumer– Manufacturer – retailer – consumer– Manufacturer – wholesaler – consumer– Manufacturer – wholesaler – retailer - consumer

• Marketing communication– Advertising– Personal selling– Sales promotion– Publicity

Value added by the marketing department

• Market research

• Pricing

• Distribution

• Marketing communication

Support business activities• Human resources

• Finance

• Information Technology

• Administration

Human Resources• Attracting human resources– Human resource planning– Staff recruitment– Staff selection– Placement of staff– Induction of staff

• Retaining human resources– Compensation (salaries)– Health and Safety– Labour Relations

Human Resources• Developing Human Resources. This is done

through– Staff training and development– Performance Management

• SETAs

• An effective human resource department can create a workforce that is:– Highly skilled– Motivated– Satisfied– Free from discrimination– Criminal free

Organisational structure• Ensuring that all the important work necessary

to achieve the objectives, is done.

• To eliminate or minimise overlapping or duplication.

• To match the skills and training of workers with the needs of the business.

Organisational structures• Functional structure

• Line structure

• Geographic structure.

Functional Structure

Line Structure

Advantages and disadvantages of a line organisational structure

Promotes in-depth expertise in particular functions, making it easy to develop specialised skills in the organisation

Creates barriers to developing cross-functional skills.

Enhances operating efficiency in functional areas

Managers are typically measured on the performance of their functional department and therefore tend to put departmental objectives ahead of organisational goals

Employees have a clear understanding of where they fit into the organisation

Communication is slowed down, since it tends to move up and down (silo effect) and not across different functions

Facilitates a team spirit in each department.

Creates barriers to co-operation between departments, often leading to conflict

Geographical Structure

Geographical Structure• Advantages– Ensures that the organisation is able to meet the

needs of its geographic markets– Ensures that the responsibility for the profitability

of the organisation is delegated– Develops strong team spirit– Creates promotional opportunities– Provides training opportunities for top

management

• Disadvantages– Creates barriers to cooperation– Limits the control of top management– May have a negative impact on corporate culture– Creates duplication and adds management layers– May cause conflict between imported managers and

local workers

Decentralisation• The management can use local expertise.

• Speedy decisions are taken without having to wait on “headquarters.”

• The local manager is held accountable for the profitability in a region.

• This obviously also creates opportunities for promotion.

• Regional positions provide training opportunities on the job.

Advantages• Ensures that the organisation is able to meet

the needs of its different geographic markets.

• Ensures that the responsibility for the profitability of the organisation is delegated to the management of each region.

• It helps to develop a strong team spirit in each region.

• It creates promotional opportunities.

• It provides a training opportunity for top management.

Disadvantages• Creates barriers to co-operation between various

regions. This often leads to rivalry and conflict.

• Limits the control of top management and can allow regions to hide their poor performance.

• It may have a negative impact on the organisation’s overall corporate culture.

• It creates duplication and adds extra management layers, which increases running costs of the operation.

• It may introduce conflict between “imported” managers and the local workforce.

Explain the role of the administration department in an

organisationAfter completing this outcome you will be able to:

• Explain the main function of the department in relation to core business

• Describe the role of three other departments that interact with the selected department

• Describe the value of the department to the organisation

Administrative tasks• Providing an efficient and effective reception

area

• Offering personal assistance to managers

• Filing

• Printing an copying of documents and forms

• Handling incoming and outgoing mail

• Providing a telecommunications service

• Managing the systems used for bookkeeping

• Keeping the statistics of the business

Interaction with other departments

• Human resources department

• Marketing department

• Purchasing department

Human resources department

• Telephone contact with newspapers / recruitment agencies

• Receiving telephone calls from applicants

• Receiving and filing applications forms

• Copying documents, forms

• Filing information of new staff members

• Induction of new employees in administrative procedures

Marketing department• Telecommunication support – handling

telephone calls relating to the products and services.

• Printing and copying services

• Keeping the sales statistics of the business

• Handling of mail related to products and services

• Reception

Purchasing department• Notification phase

• Order phase

• Post-order phase

Specific steps in the purchasing cycle

• Development and description of a need

• Choice of suppliers

• Determine prices– Placing an order and concluding a contract

• Expediting and follow-up

• Receipt, inspection and distribution

• Handling errors and discrepancies

• Paying for the order

• Closing the order

Steps and documents1. Identification of a need – requisition form,

order card, specification form

2. Choice of suppliers – database of suppliers

3. Determining prices – database of suppliers

4. Determining prices – price lists, catalogues, quotations

5. Issue order, sign contract - order form, specifications

6. Follow up – Reminder form

Steps and documents7. Handling errors – order form and

consignment note

8. Paying for the order – order form, delivery not, proof of receipt, invoice

9. Closing the order – order form, delivery not, invoice, cheque

Value of the administration department

• Reception

• Management and administrative assistants

• Handling of mail– Distributed early in the working day– Not damaged– Not lost or delivered to the wrong people

• Maintain an information system

Different types of work done in the administration department

After completing this outcome, you will be able to:

1. Identify the different roles in the department

2. Discuss the importance of each category of work

3. Identify the most senior person in the department, with a title where applicable

4. Describe the line of authority from the most senior person in the department to the Board of Directors

Work done in the administration department

• Reception area

• A good receptionist will have the following qualities:– Personal neatness and a good posture– Professional clothing– Good communication skills– Helpfulness– Tact– Friendliness– Pleasant tone of voice– Thorough knowledge of people– Balanced personality– Good listening skills– Good human relations– Knowledge of the company– Good memory

Reception area• The reception area must be located in a central

and easily accessible part of the building

• Visitors must be able to find the reception area easily – signs must be put up to direct visitors

• People with disabilities should have easy access to the reception area

• The reception area must be spacious so that everyone can move easily

• Adequate seating should be provided

• If there are security doors, they should not obstruct entrance to the reception area

Layout of reception area• The décor should be tasteful and create a

peaceful atmosphere

• There must be enough seating

• The space must be used sensibly and effectively

• A peaceful atmosphere must be created so that visitors can relax while they wait

• The reception area must always be clean and fresh

Main activities of the reception area

• Reception of parcels– Check that the parcel is addressed to your

organisation– Make sure that the addressee works at your

organisation– Distribute it to the relevant person as soon as

possible– If the parcel looks suspicious, do not open it, but

rather take it to the security personnel for investigation

Main activities of the reception area• Reception of visitors

– Receiving visitors and directing them to the right person

– Assisting those visitors who do not know where to go or whom to see

– Bringing visitors to your senior once he or she is ready to receive them

– Serving tea and refreshments when required

– Co-ordinating your diary to ensure it corresponds with that of your senior so that you do not make appointments when he/she is already committed somewhere else

– Answering the senior’s telephone and to screen calls by making sure that he/she is the right person to speak to

– Making appointments for the senior with visitors who want to see him/her or when he/she must see another person

– Displaying information about the organisation, its services, products, staff and policies in the reception area.

Management Assistant• Junior administrative assistant– Receiving and making telephone calls and take

messages– Sending and receiving faxes and e-mail– Maintaining a paper and electronic filing system– Photocopying and duplicating documents– Keeping the office and/or reception area tidy– Typing documents on the computer– Handling all office equipment.

Management Assistant• Senior administrative assistant– Receiving visitors– Answering the telephone, screening calls and

redirecting them if necessary– Making telephone calls and liaising with clients– Maintaining and updating the manager’s diary– Co-ordinating meetings and making arrangements

for such meetings– Making travel arrangements

Taking responsibility for stationery, petty cash

– Filing of the manager’s documents– Preparing minutes and agendas for meetings– Planning meetings and functions– Dealing with confidential matters– Supervising the manager’s office