Sub code Subject: credit Hour

BBA 1313 Business Organization

3
Credit hours
3

Organization Structure
presented by
Group' A' Members
Hari shankar sah
Romeena shrestha
Nabeena Khatri
 Table of content

Chain of command
Authority of Board of Director (BOD)
Monitoring by institutional investor
 Chain of command

It refers to level of authority in the

company delegated from the top position,
such as a CEO or business owner, to the
lower level of workers.

It also means a companys hierarchy of

reporting relationships from the bottom to
the top of an organization.
 Cont.

A proper chain of command ensures

that every task, job position and
department has one person
assuming responsibility for
performance.
For example:- When an employee
reports to a manager who report to a
senior manager who reports to the
vice CEO makes final decision binding
on everyone, followed by the vice
 Important concept of chain of
command
Authority
It refers to the right inherent in a
managerial position to tell people what to do and
to expect them to do it.
Responsibility
The obligation to perform any assigned
duties.
Unity of command
The management principle that each
person should report to only one manager.
 Key Elements
Formation
It refers to the degree to which jobs within
the organizational are standardized and the
extent to which employee behavior is guided
by rules and procedures.
Organizational Chart
It shows the structure of an organization
and the relationships and relative ranks of
its parts and positions/jobs, which depicts a
companys structure. Starting at the bottom,
each position is connected to one above it
by a line.
 Cont.

Span of Control
It is also known as management ratio. It
determines the number of subordinates and
managers in an organizational are directly
controlled by a superior. It also manage the
number of employees a manager efficiently
and effectively.
Authority of Board of Director
(BOD)
 Authority
The wordauthority(derived from
theLatinwordauctorial) can be used to
mean therightto exercisepowergiven by
theState(in the form of government,
judges, police officers, etc.), or byacademic
knowledge of an area (someone that can be
an authority on a subject).
 Board of Directors
Aboard of directorsis a body of
elected or appointed members who
jointly oversee the activities of
acompany ororganization.
 Authority of board of
director
Authorities of board of directors are:
Right to give orders
Enforce obedience
Make decision
 Role of Board of Directors
Provide entrepreneurial leadership
Set strategic (Long term objectives
and plan to implement)
Arrange resources to implement
strategic plan
Review the performance of
management
Set company values and standards
(mission, vision, code of conduct for
management and employees)
 Monitoring by institutional
investor
 Introduction
Institutional investors are entities
that pool together funds on behalf of
other, and invest those funds in a
variety of different financial
instrument and assets classes.
Also known as "Active investing,
Relationship investing, Shareholder
activisms, Shareholder intervention"

Copyright 2010 McGraw-Hill

Australia Pty Ltd
PowerPoint slides to accompany
01/01/17
Croucher, Introductory Mathematics
 Cont....
According to stapledon " Any form of
involvement, direct or indirect, at firm
level or industry wide, by institution in
corporate governance."
The fastest growing institutional
investors are:-
i. Public pension funds.
ii.Mutual funds.

Copyright 2010 McGraw-Hill

Australia Pty Ltd
PowerPoint slides to accompany
01/01/17
Croucher, Introductory Mathematics
 Types of Institutional
Investors
Investment Co mpanies
Mutual Funds
Brokerages
Insurance Companies
Pension Funds
Investment Banks
Endowment Funds
Saving Institution
Copyright 2010 McGraw-Hill
Australia Pty Ltd
PowerPoint slides to accompany
01/01/17
Croucher, Introductory Mathematics
 Pros of Institutional
Smart moneyInvestors
involvement:- portfolio
managers often have a team of analyst at
their disposals, hence they are able to
perform in depth analyses.
Institutions market the stock:- after
some institutions establish a position in a
stock, their next move is to tout the
company's merits to the sell side.
Institution can be good citizens:-
institutional turnover in most stock is quite
low. That's because it takes a great deal of
Copyright 2010 McGraw-Hill
Australia Pty Ltd

time and money to research a company

01/01/17
PowerPoint slides to accompany
Croucher, Introductory Mathematics
 Cons of Institutional
Fickleness can kills:- Individual
investors
portfolio managers are frequently
evaluated on their performance on a
quarterly basis. This process of
evaluation is quite unfortunate, and
can lead to increase in trading cost,
taxable situation.
Selling leads to excess in supply:-
Because Institutional investors can
own hundreds or even millions of
shares, when an Institutional
Copyright 2010 McGraw-Hill

investors decides to sells, the stovk

Australia Pty Ltd
PowerPoint slides to accompany
01/01/17
Croucher, Introductory Mathematics
 Conclusio
n
Institutional investors remain an
important part of the investment world
despite a flat share of all financial assets
over the last decade and still have
considerable impact on all market and
assets classes.

Copyright 2010 McGraw-Hill

Australia Pty Ltd
PowerPoint slides to accompany
01/01/17
Croucher, Introductory Mathematics