There are various relationships within any organizational structure existing between those holding posts at different levels or on the same level. Those relationships are related to the types of organization. They are
1. Direct or Line Relationships
The relationship between a senior and his subordinate at any level is described as direct, line or executive relationship.
The individual is expected to take instruction from his superior and to be responsible to that superior. He also can give instruction and assign task to his immediate subordinate and be responsible for seeing that the work is done satisfactorily. Mailroom supervisors and his superiors the Office Manager or the Mailroom Supervisor and his subordinate the Incoming Mail Clerk; or between the GeneralManager and the Departmental Managers under him.
2. Functional Relationship
This is a relationship in an organization existing between functional managers and those with the line or direct executive responsibilities, for example, a Works Manager and the Personnel Manager. It is also described as a specialist relationship. Where there is a functional relationship, the functional manager advises the line managers and carries out his duties in his area of specialisation in the line managers department. For instance the Personnel Manager might cause the dismissal of a staff of the Production Department.
3. Staff Relationship
Here the relationship is found mostly at the top level of the organization. It is between a manager and a personal assistant attached to him, for example, a Managing Director and his personal assistant. The personal assistant is out the line of authority and responsibility. He is not the Assistant or Deputy of the Managing Director. He does not assign responsibility or give authority to anyone in the managers line subordinates. He does so only when discharging the responsibilities of his chief in relieving him of his numerous routine duties. He only has formal relations with his chief but not with anyone else. He may well be an advisor or a consultant brought in to assist the organization on few procedures or techniques.
Another staff relationship exists between say a Sales Manager and a Training Officer where the former may need the advice of the latter in order to perform his duties. For example, about a suitable course for his sales representatives. The Training Officer only gives advice and the Sales Manager may or may not take the advice.
4. Lateral(Horizontal) Relationship
This is the relationship existing between executives or supervisors operating at the same level of responsibility and authority, and working to achieve the same objectives. They are within the span of control of one supervisor. None of them is superior to or subordinate of the other. None of them instructs the other, nor is the subordinate of each other.
For instance, there is a lateral relationship between all heads of departments or executives because they are working together at the same level of responsibility or authority to achieve the common objective of the business. And also in the Marketing Department for example, lateral relationship exist between the Advertising Manager, the Market Research Manager and the Sales Manager who work to achieve marketing objectives of the department.
Importance of Organization
? It brings about delegation of duties. It is difficult for one man to do everything especially as the business grows. As a result an organization allows some duties to be distributed to other people.
? Organization brings about co-ordination. In order to achieve the common objective of the business, the whole people in the organization should work together.
? Fixing responsibilities of individual post. What each person is to do in the business is shown in the organization; the number of people under the direction of each person at a particular post, etc.
? Authority is defined. Organization shows which people are to be instructed or directed to do something by the leader at the post and for the people to obey the instructions by the leader.
? Since everybody knows his duty, and does it to meet the approval of the top level management to avoid blame, a good organization affects the motivation and the morale of employees.
DEPARTMENTS WITHIN AN ORGANIZATION AND THEIR MAIN FUNCTIONS
As a business grow it becomes complicated regarding its effective management. That is why organization has different departments whose activities vary even though their motive is effective organization.
1. Administration
The key executive is the Company Secretary or Administrative Manager. An Office Manager and Supervisors are appointed to assist the Company Secretary in large business concerns. Its objective is to co-ordinate all the administrative functions of the business.
Functions
• Office planning and organization
• Office systems and services, for example, typing, mail, messenger and telephone services.
• Receiving of callers at business premises and directing them to the appropriate department concerned with their call.
• Provision of advisory services to other departments such as planning of clerical activities, work methods and office accommodation layout.
• Keeping of statutory books, for example, Minutes Books, register of members and making special statutory returns to the Registrar of companies. E.g. a copy of its accounts each year signed by the secretary.
• The department is responsible for all duties concerning meetings of the directors and shareholders that is arranging, preparation of notice and agenda and writing minutes.
• Maintenance of effective general service to avoid unnecessary duplication and waste.
Possible sections under the department are: Registry of filing, Correspondence(Typing and Mailing), Reception, Clerical, Switchboard(Telephonist), Duplicating etc.
2. Finance/Accounts Department
This department is concerned with the financial control/ administration of the company’s assets; calculation of profit and loss, and forecasting and budgetary control.
Functions
• Keeping various books of accounts relating to the financial affairs of the business
• It ensures that there is adequate amount of cash to meet all cash transactions
• Preparation of annual accounts presented to shareholders at the Annual General Meetings.
• Reporting financial matters to management
• Credit control that is, preventing the creation of bad debts.
• Preparation and payment of wages and salaries
• Budgetary control that is, checking of actual results against what has been originally planned on income and expenditure.
• Management of an organization’s banking transaction with the banks
• Management of organization tax transactions with the appropriate tax agencies such as the Internal Revenue Service (IRS) and The Value Added Tax(VAT) secretariat.
• Computing and giving out prices quotations to prospective customers on request.
• Issue of invoices, receipts and direct credit to customers.
3. Personnel Department
This department is sometimes referred to us Human Resource Department. The basic activity of the personnel department is about employees’ welfare and wellbeing. They are also into recruitment. Their major concern is to maintain harmony between management and workers or employers and employees. The department is headed by the Human Resource Manager and assisted by other personnel such us Training Officers, Recruitment Officers, Industrial Relations Officer and Manpower Planning Officer.
Functions
• Recruitment and Selection of employees
• Education , training and development of staff to maintain a certain level of efficiency towards increased productivity
• Proper administration of wages and salary schemes to ensure that employees are compensated in monetary terms based on their level of education, experience and deficiency.
• The department doubles as an intermediary and a facilitator between management and union in matters relating tocollective bargaining and others contained in the collective bargaining agreement.E.g. Negotiation with trade unions on hours of work, rates of pay etc. and then arbitration or settling internal disputes and dealing with discipline.
• Management of working conditions and general welfare of employees
• Administration of health and safety facilities to prevent or reduce the incident of accident at the workplace. E.g. of these facilities are working gadgets, gloves and nose marks, first aid kit etc.
• Keeping staff records
• Regular periodic assessment of how a worker is doing his job for promotion purpose, extra pay, etc.(performance appraisal)
• Promotion, demotion and transfer of staff
• Termination and dismissal of staff
4. Marketing or Sales Department
The department is referred to as sales because sales are an integral part of the general term marketing. Marketing is a wider term and controls sales, advertising, warehousing transport, packaging, and market research. It is headed by the Marketing Manager and its objective is sales promotion and development of new markets.
Functions
• To ascertain what customers want to buy, that is assessing the market.
• To sell the products that the production department has produced. This involves doing everything possible to convince the customer to buy.
• To transport the goods and services to places where customers would require them
• To let possible purchasers know the products and services of the business and where to get them as well as their uses.
• To see to it that the goods are delivered to purchasers in accordance with orders received.
• Management of sales team including sales representatives agents who sell the company’s products or services.
• Conducting periodic research on customer preference so as to fully satisfy customers.
• Providing customer follow-up services of repair and maintenance to the purchaser of the company’s product.
• To store goods or services in anticipation of future demand
A section may supervise sales to the Home, Overseas Market, After Sales Service, Sales Promotion, Invoicing etc.
5. Purchasing Department
It is sometimes known as Procurement or Merchandise Department. It is under the direction of the Purchasing or Procurement Manager. It seeks to purchase and deliver the best of goods at the most favourable terms. It is responsible for the buying of raw materials for the factory, machinery used in the manufacturing of the firm’s product, office stationery and supplies, equipment and furniture, motor vehicles and possibly for the canteen.
Functions
• Seeks out and keep in touch with the best sources of supply
• Negotiating favourable terms with regard to prices, delivery at the right time, in the right quantities, right goods etc.
• Checking and certifying on purchase invoices that goods have been received.
• Collect requisitions from other departments for the purchasing of their required goods
• Places contracts or make official order for raw materials used in the manufacture of the company’s product
• It places contract or order for the purchase of supplies, equipment and furniture which any department may request and approve for the purchase of it.
• It keeps suppliers list as well as purchaser’s records, e.g. letters of enquiry, purchase orders, purchase requisition, etc.
• Ensuring that purchases are in conformity with an organization’s set quality standards.
• Proper management of maximum and re- order levels. This will help prevent complete shortage and excess stock ensures that items purchased are properly stored pending supply to the appropriate departments.
6. Legal Department
This department is usually headed by a professional lawyer who has been called to the bar. The lawyer heading the legal department may be referred to us the solicitor secretary who represents the organization in all legal matters at the courts.
Functions
The solicitor secretary may perform the following functions on behalf of his organization.
• Provision of advisory services on what to do and not to do so far as laws are concerned.
• Represents his organization in all suits affecting it.
• Any legalities that administration may enter into with customers and other stakeholders.
ORGANIZATIONAL CHARTS
It is a graphical or diagrammatical representation of the organizational structure of a business unit. It is therefore a chain or arrangement of responsibilities or duties showing persons who are in charge of various activities or duties and persons to whom they are responsible.
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