University of Melbourne 2010
- Updated 2013
Unit 3/4 Business Management involves 5 Areas
of Study across the 2 units (3 in Unit 3 and 2 in
Unit 4)
Unit 3: Corporate management
AoS 1: Large-scale organisations in context
AoS 2: Internal environments of large-scale organisations
AoS 3: The operations management function
Unit 4: Managing people and change
AoS 1: The human resource management function
AoS 2: The management of change
AN ORGANISATION CAN BE DEFINED AS A FORMAL ARRANGEMENT OF
PEOPLE TO ACCOMPLISH SOME SPECIFIC PURPOSE OR GOAL
ORGANISATIONS USUALLY EXIST TO BRING TOGETHER PEOPLE AND
RESOURCES (INPUTS) TO GET THINGS DONE (OUTPUT) MORE EFFICIENTLY
AND EFFECTIVELY
ORGANISATIONS ARE USUALLY LED BY ONE PERSON OR A NUMBER OF
PEOPLE AND ARE COORDINATED BY SOME FORM OF STRUCTURE
(MANAGEMENT)
LARGE-SCALE ORGANISATIONS ARE THE FOCUS OF BUSINESS
MANAGEMENT AND CAN BE DEFINED AS ORGANISATIONS THAT ARE
SUBSTANTIAL IN TERMS OF:
PEOPLE
Employs 200 people or more
TOTAL ASSETS
Worth more than $200 million
REVENUE
Earn revenue in the millions
MULTIPLE LOCATIONS
STRUCTURE
Branches/divisions/plants in a number of
locations within and/or outside Australia
Complex structure to provide control over
all aspects of the LSO. Eg;
CEO
Marketing
Finance
Operations
HR
R&D
AN ORGANISATION CAN BE CLASSIFIED ACCORDING TO
AIM
OWNERSHIP
INDUSTRY LEVEL
INDUSTRY TYPE
ACTIVITY TYPE
Profit or Not-for Profit
Public, Private or GBE
Primary, Secondary & Tertiary
Manufacturing, Retail, Tourism, etc
Manufacturing or Service
Provide
employment
Assists
economic
growth
Build
international
relationships
• Taxation revenue for the government
• LSO’s pay tax on profits
• Employees spend money – buy goods and services
• LSO’s spend money on goods and services
• Export goods overseas
• Employee people overseas
Undertake
investment
Aids
infrastructure
growth
Improves
skill base
• Research new products and production methods
• Improved quality of goods and services
• When LSO’s build new plants, infrastructure
develops in support
• Provide training for employees
• Fund education and training programs
• More competition lowers prices of goods and services
Encourages • Can lead to improved quality
competition
Downsizing
• Removing unproductive sections of the organisation
to improve profit
Outsourcing
• Having non-core activities supplied by another
organisation rather than by own employees
Negative externalities
• Outcomes of production that negatively impact
upon society. Things such as pollution,
environmental damage, etc.
Macro
Environment
Operating
Environment
Internal
Environment
1. Political pressures
2. Economic pressures
3. Pressures for change
4. Legal issues
5. Technology
6. Ethical and social responsibility
1. Competition
2. Finance companies
3. Employees/Unions
4. Lobby Groups
5. Suppliers
6. Customers
Organisational Corporate
culture
structure
Management
roles
Policies
Management
styles
Ethical and
social
responsibility
Management
skills
LSO’s are continually engaged in evaluation of their performance.
With LSO’s being affected by forces outside their control, they are
required to evaluate how a ‘factor’ has affected their performance
For example, has the credit crisis affected our cash flow – are we
able to meet our financial commitments? Is now the best time to
expand? Etc.
There are 10 Performance indicators that students can be
examined on and/or use in a response to an exam question. Can
you name them?
1. Percentage of market share
2. Net profit figures
3. The rate of productivity growth
4. The number of sales,
5. Results of a staff satisfaction survey
6. Results of a customer satisfaction survey
7. The level of staff turnover
8. Level of wastage
9. Number of customer complaints
10. Number of workplace accidents
These performance indicators measure the efficiency
and effectiveness of the business
A stakeholder is any person/group that interacts with an LSO
and have an interest in the activities of the LSO
Shareholders
Management
Employees
Customers
Suppliers
Society/community as a whole
Organisational Objectives
An objective is a desired goal, outcome or result that an organisation
would like to achieve.
Organisational objectives may include:
* Profit
* Expansion of the organisation
* Increased market share
* Providing excellent customer service
* Providing services to the community.
Objectives can be:
•Strategic
•Tactical
•Operational
Organisational Objectives
Who we are
What we do
Where are
we going
Vision Statement
Mission Statement
Organisational Objectives often involve the creation of a Mission and Vision
Statement
Aspirations
Future
orientated
Society has developed a notion that all LSO’s should act
in an ethical and socially responsible manner to all
stakeholders
Social responsibility is the obligations of an LSO over and
above its legal responsibilities
Ethical management is the process of abiding by moral
standards and ‘doing the right thing’ in the interests of all
stakeholders
Can be measured by the ‘triple bottom line’ – economic,
social and environmental performance of an LSO
Situations where E & SR is a consideration?
Organisational structure looks at how the various
levels of management are arranged within an LSO.
They tend to be hierarchical.
An organisational structure provides:
1. Chain of command
2. Lines of communication
3. Positions of accountability
4. Positions of responsibility
Executive
Management
More
Authority
Upper Middle
Management
Accountability
Middle Management
Responsibility
Lower Management
Less
Frontline Management
Communication
TYPES OF ORGANISATIONAL STRUCTURE
MAIN TYPES OF ORGANISATIONAL STRUCTURE
1. FUNCTIONAL
2. DIVISIONAL
3. MATRIX
FUNCTIONAL
•THE FUNCTIONAL STRUCTURE IS THE MOST BASIC ORGANISATIONAL
FORM
•EMPLOYEES ARE GROUPED TOGETHER IN SEPARATE DEPARTMENTS
ON THE BASIS OF COMMON TASKS, SKILLS OR ACTIVITIES
ie: A HIGH LEVEL OF SPECIALISATION
Advantages of a Functional Structure
* Career pathways can be easily identified
* Staff can become experts in their field through task specialisation
* Opportunities for skill and knowledge development
* Efficient use of resources
* Ability to develop as a team and enhance goal congruence
Disadvantages of a Functional Structure
* Departments can become inflexible and overly bureaucratic
* Departments can become narrow in their focus and move away from
broader organisational goals
* Managers can become more concerned about ‘empire-building’
* Hoarding of resources for future use rather than ‘sharing’ excess
resources.
Product structure
Products manager
Manager –
Canned food
Manager Confectionery
Manager –
Diet goods
Manager –
Soft drinks
Manager –
Dry goods
Geographic structure
Global manager
Manager
- Europe
Manager Asia
Manager –
Nth America
Manager Australia
Manager –
Sth America
Customer structure
Client services manager
Manager –
Corporate clients
Manager –
Private clients
Manager –
Government clients
Process structure
Operations manager
Manager Production
Manager Purchasing
Manager –
Warehouse
Manager –
Quality control
THE MATRIX STRUCTURE IMPLEMENTS FUNCTIONAL AND
PROCESS ORGANISATION SIMULTANEOUSLY
•EACH DEPARTMENT IS SUPERVISED BY TWO MANAGERS HAVING
EQUAL AUTHORITY
FUNCTIONAL MANAGER RESPONSIBLE FOR THE SPECIALIST
DEPARTMENT
PROCESS MANAGER (PROJECT MANAGER)IS RESPONSIBLE FOR
INTEGRATING THE ACTIVITIES OF THE SPECIALISTS ACROSS THE
FUNCTIONAL DEPARTMENTS
•WHEN THERE IS A NEED FOR DUAL FOCUS
•LARGE AMOUNTS OF INFORMATION MUST BE PROCESSED
•EFFICIENCY OF RESOURCES IS NEEDED
Advantages of a Matrix Structure
* Enhanced flexibility – operations can be altered quickly to suit
circumstances
* Ability to trouble-shoot – if an area has a problem, a project team can be
created to solve the problem
* Enhanced communication, cooperation and teamwork
* Pooled expertise allows better conditions for problem solving
Disadvantages of a Matrix Structure
* Decisions in one department can undermine line authority in that department
* This can challenge the ‘unity of command’ principle
* Employees may find themselves reporting to two managers which can
effect communication and goal congruence
Team structure
ManagerCanned food
New products
team
General Manager
- Products
Manager –
Diet goods
ManagerConfectionery
Manager –
Dry goods
Manager –
Soft drinks
Marketing
team
2. Corporate Culture
Corporate culture is a set of unwritten or informal rules that dictate how people in
an organisation should behave in any given circumstance.
These rules are based on the beliefs, values, ideas and expectations shared by
the members of the LSO.
Knowing these rules makes it easier for managers to get things done and/or initiate
change.
An understanding of an LSO’s corporate culture by employees can create a
positive and personalised environment leading to a more successful LSO.
A corporate culture generally consists of 4 essential elements:
1. Values
3. Rituals, rites and celebrations
2. Symbols
3. Management Roles
There are generally considered to be 4 roles that managers
perform.
These roles are referred to as POLC:
PLANNING
ORGANISING
LEADING
CONTROLLING
Planning is seen as the most important or primary management role.
Planning provides for the short- and long-term success of an LSO.
Planning occurs once an LSO has identified its organisational objectives.
Planning involves making the decisions on how to achieve the
organisational objectives.
Planning must involve all activities at all levels of the organisation.
This requires 3 levels of planning:
1. Strategic
(long-term) planning
* Respond to emerging trends, events, challenges and opportunities within the
context of the LSO vision and mission.
* Provide direction towards achieving goals and targets.
* Plan for and anticipate the future.
* Concentrate on an idea and vision.
* Create a framework for achieving competitive advantage by analysing the
potential of the LSO and its internal and external environments.
* Guide management of the human, financial, technical and social resources.
2. Tactical (medium-term) planning
* Formal medium-term planning undertaken by middle management to implement
the organisation’s strategic plan.
* Respond to changes caused internally and externally.
* The allocation of resources in order to achieve the organisation’s objectives.
3. Operational (short-term) planning
* The planning of day-to-day operations by the lower level supervisors and managers
within an organisation.
* The implementation of the strategic plan against specific objectives.
To work effectively – all levels of planning must ‘fit’
together
Strategic Plan
Tactical Plan
Operat
Plan
Operat
Plan
Tactical Plan
Operat
Plan
Operat
Plan
Tactical Plan
Operat
Plan
Operat
Plan
Tactical Plan
Operat
Plan
Operat
Plan
The basis of the planning process is a SWOT analysis.
Internal assessment
External assessment
S
W
O
T
Strengths
Weaknesses
Opportunities
Threats
What does
the LSO do
well?
Are we
financially
sound?
Do our
processes
reflect best
practice?
Are our staff
performing to
the level
expected?
Is our
equipment
the most
modern and
efficient?
Is the
economic
climate right?
Is there new
competition
emerging?
What new
markets are
available to
us?
What new laws
affect us?
Is our market
share declining?
Management Roles - Organising
Organising – managers need to make decisions that reflect the
mission statement, objectives and goals that have developed from the
planning process.
Managers organise a variety of people and tasks and systems to
ensure the LSO operates efficiently and effectively.
Organising involves the following activities:
1. Division of labour – divide jobs between individuals and/or
groups who are then assigned responsibility for performing them.
Management Roles - Organising
2. Delegation of authority – distribute authority to employees. How
much authority to give to each employee.
3. Span of control – in organising employees and delegating
authority, managers must determine the ‘span of control’ for each
employee with management responsibilities.
4. Coordination – organising the various
sections/departments/work units so that all employees are working
together and aiming to meet LSO objectives.
Management Roles - Leading
Leading – the ability to influence others so as to achieve goals.
Leading is a dynamic process that helps to define and shape the
LSO’s culture and is primarily a process of influence.
Power is the focal point of leadership. There are four categories of
power:
1. Legitimate power – the power that is confirmed on a manager by
the very structure in place at the LSO. It is accepted by all and is
not disputed.
Management Roles - Leading
2. Expert power – the employment of expert skills, knowledge and
information allows a person to influence others.
3. Reward or coercive power – the power to reward or punish
people as a means of influencing them so they comply to the way
of thinking required.
4. Referent power – power achieved through being liked and
respected by subordinates, peers and supervisors.
Management Roles - Controlling
Controlling – a continuous process that ensures plans are being
implemented appropriately and alerts managers to any deviations
from the plan so corrective action can be instigated.
There are a number of types of controls:
1. Cost controls
2. Time controls
3. Financial controls
Most LSO’s develop a control process:
Management Roles - Controlling
The control process
1. Establish
performance standards
in line with LSO
objectives and
influences from
employees,
government, industry &
management.
2. Measure
performance and make
comparisons against
standards.
3. Take corrective
action – changing
processes, personnel
and activities to ensure
plan is ‘back on track’.
4. MANAGEMENT STYLES
How a manager interacts with stakeholders in an effort to achieve the LSO
goals will in some way depend upon the style of management they adopt.
A management style is the manner and approach of providing direction,
implementing plans and motivating people.
There are 5 broad management styles
Most managers will use all 5 broad management styles at some point,
however, most long term managers will develop a style that will become
more dominant.
4. MANAGEMENT STYLES
Task orientated
hierarchical structures
Employee orientated
flatter structures
Management control
More
Autocratic
Less
Laissez-faire
Consultative
Persuasive
Participative
Autocratic
An autocratic manager likes to be in control – the POLC functions are centralised
around the manager.
Decision making is centralised with a strict hierarchical chain-of-command.
An autocratic manager has a high regard for production and efficiency (task
orientated.
An autocratic manager expects team members to comply with their decisions and
are not concerned with the attitude or thinking of the group.
This type of management style results in passive resistance and requires continual
pressure and direction to get things done.
This type of management style uses rewards and punishments to achieve
objectives.
Persuasive
A persuasive manager uses their ability to interpret a situation, people’s actions
and dialogue, and then convince them to do a task their way
Decision making is made by the manager who then tries to convince others it is in
the best interests of subordinates to agree..
A persuasive manager lets their intentions be known.
A persuasive manager operates a centralised system as communications are still
one-way and reflects a hierarchical system.
This type of management style does not encourage initiative and commitment from
employees.
This type of management style is task orientated.
Consultative
A consultative manager likes to gather the opinion of staff members before making
a decision.
While seeking ideas and suggestions from employees, the manager ultimately
makes the decision.
The power of a consultative manager is more employee-based and less
centralised than the previous mentioned styles..
The level of communication (or consultation) and employee involvement means
employees are task-orientated, motivated and perform at their best in achieving
the LSO’s goals and objectives.
Communication is more two-way.
Participative
A participative manager will share the decision-making with employees and team
members.
The participative management style engages employees by asking for their
opinions and sharing information and agendas openly in order to gain the best
performance from the team.
Communication is open and two-way, there is high employees involvement and
generally a flatter organisational structure.
This type of management style empowers employees be being a leader and a
coach. Allows the team to decide how a task will be tackled and by whom
This type of management style encourages employees to design their own work
and involves a decentralised system.
Laissez-faire
A laissez-faire manager exercises little control over their team, leaving the team to
determine their roles and carry out their work, without participating in the process
themselves.
Decision making is highly decentralised and so is power and the organisational
structure.
A laissez-faire manager has little or no role in the day-to-day running of the
organisation.
This type of management style involves management setting the objectives but
employees take full responsibility to implement their achievement.
This type of management style is most effective in creative or research work
environments.
5. MANAGEMENT SKILLS
Skills are the abilities of a manager to produce an outcome that meets or exceeds
the standards required by the LSO in order to meet goals and objectives.
Each management level requires a set of skills. As a manager moves up the
hierarchy, they are required to build on existing skills as well as develop new skills.
Skills that a manager may have include:
* Communication skills
* Delegation skills
* Negotiation skills
* Problem-solving skills
* Decision-making skills
* Teambuilding skills
* Technical skills
* Time management skills
* Visionary/Creative thinking skills
* Emotional intelligence
5. MANAGEMENT SKILLS
* Communication skills
The ability to clarify with employees the tasks that they are required to complete.
Communication movement will reflect the organisational structure and management
style.
Communication can be:
• Written
• Verbal
• Non-verbal
Listening is an important part of communicating
Poor communication can lead to:
* Staff frustration
* Lack of motivation
* Loss of direction
5. MANAGEMENT SKILLS
* Delegation skills
Delegation -manager gives authority to an employee to complete a set task.
Delegation allows employees to use/develop their skills/knowledge to their potential
Managers who can delegate effectively will train the delegates to apply appropriate
criteria to avoid losing control of their employees.
Managers who can delegate are showing their employees that they trust them and
see a future for them within the LSO.
* Negotiation skills
Managers who can resolve a dispute or produce an agreement that satisfies the
majority of stakeholders
5. MANAGEMENT SKILLS
* Problem-solving skills
Problem solving involves identifying problems, then devising and implementing an
action plan.
To competently solve problems, a good manager will seek help, think critically,
creatively, reflectively and be able to adapt.
Managers must be open and honest in their communication with those involved
and recognise that quick, easy solutions to complex problems will not work.
The problem-solving process:
1. Identify
2. Gather
3. Develop
4. Rank
5. Implement
6. Evaluate
5. MANAGEMENT SKILLS
* Decision-making skills
Decisions made by managers affect the LSO’s ability to meet its objectives.
Managers are required to look at and evaluate alternatives, consider the shortand long-term risks and then select the best alternative.
Managers may make decisions individually or may involve team involvement .
This will depend upon the style of management used.
There is a strong connection between decision-making and problem-solving as
decisions are made to solve problems identified.
5. MANAGEMENT SKILLS
* Teambuilding skills
Teamwork -a set of behaviours which two or more people demonstrate when
working on a common task.
Employees who are part of or encouraged to be part of a team are more likely to
share the vision of the LSO and management.
Teamwork encourages open communication, improves morale and workplace cooperation, productivity and develops a positive corporate culture.
The skill is putting the ‘right’ team together
* Technical skills
Managers need to be constantly updating their technical skills – particularly in IT.
Managers need to be make technical decisions, advise on technical matters and
give technical instructions to employees.
Good technical skills allow managers to establish procedures for equipment usage
and allow them to gain respect from staff.
5. MANAGEMENT SKILLS
* Creative thinking skills
The ability to ‘think outside the square’
Managers are often required to come up with creative solutions to new problems.
Managers with creative thinking skills are often generating new ideas.
Managers with creative thinking skills are constantly looking for better ways to
overcome problems and achieve their goals in changing macro and operating
environments.
* Visionary skills
The ability to ‘see the big picture’
Managers with visionary skills are often able to look forward and identify future
opportunities/problems and come up with solutions/plans so as to be ready to meet
the challenges or take advantage of the opportunities.
5. MANAGEMENT SKILLS
* Time management skills
Time management allows managers to allocate their time between tasks so a
greater majority of tasks can be completed.
Time management is also about setting realistic timelines for tasks to be completed
and meeting deadlines imposed upon them.
Good time management ensures each decision and each problem is given the
proper consideration and all alternatives are properly evaluated – nothing is rushed.
* Emotional intelligence
The skill of identifying, assessing and managing the emotions of yourself and others
– particularly staff
Also known as people skills – being empathic to the needs of staff
6. POLICY DEVELOPMENT & ITS APPLICATION
An LSO should establish a set of policies and procedures that is
communicated to all employees so they are aware of what is expected of
them.
Where policies and procedures are known, there is a greater chance of
success for the LSO in meeting its objectives.
Without such policies and procedures an LSO would be in chaos with little
chance of meeting its objectives.
There are a number of legislative policies that an LSO must follow and
policies the LSO creates for it’s own environment
6. POLICY DEVELOPMENT & ITS APPLICATION
A policy is an established set of broad guidelines to be followed by all employees
when dealing with decision-making issues.
A procedure is a process that describes what actions are to be taken to ensure a
policy is followed or what to do in the case of a breach of a policy.
Both policies and procedures provide a level of consistency for all stakeholders of
an LSO as there is certainty as to how certain issues will be dealt with.
Policy development requires a process:
1. Identify the need for a policy
3. Consult stakeholders
5. Gather feedback and revise draft
7. Evaluate
2. Research business environments
4. Develop draft policy
6. Implement policy
OPERATIONS MANAGEMENT
Operations Management can be defined as the design, operation and
control of the transformation process that converts resources into
products or services.
Operations Management establishes:
A level of quality of good or service
Overall cost of production
Ability to meet consumer demand

Inputs
Raw Materials, Financial Resources, Human Resources, Time, Capital
Equipment, Information

Processes
Inputs are converted by a series of processes to produce the output.
Becomes a value adding process.

Output
Finished products (goods or services) for sale
The systematic planning and control of all the production activities.
Maximizing productivity.
Maximizing the use of resources; labour, equipment.
Maximising stock, layout and information systems.
Minimising manufacturing, inventory, maintenance and distribution costs.
Managing projects in accordance with the planned timetable.
Multi skilling of staff via training.
Increase the motivation and commitment of staff.
Making use of the latest technology.
The Operations Manager is involved in decision-making at
the strategic level, operational level and front line level and
therefore needs various skills to perform these tasks.
Strategic Planning
Tactical Planning
What to produce
What stock levels are optimal
Production capacity required
How do we conduct equipment
maintenance
How to produce
Sequencing of orders
How do we manage quality
How do we establish our production
process
Operations Strategies
Technology
Quality
Materials Management
Facilities Design and Layout/Production
Processes



offer efficiency savings (productivity) time and cost
quality improvements and safety benefits.
Organisations that fail to keep up with
technological innovations will lose the
competitive edge.
Computer Aided Manufacturing (CAM):
Involves the control of machinery, tools and
equipment through a computer program.
Computer Aided Design (CAD):
This is a computer program that facilitates
the creation and modification of product
designs.
Allows simulations
Computer Integrated Manufacturing: (CIM):
CIM can utilise CAM, CAD, MRP (Materials
Requirements Planning inventory
management) together in one computerised
system. A CIM facility can take a product idea
from general concept to actual production in
a very short time.
Robotics
Robots are used to undertake simple and repetitive tasks and
usually deliver greater strength, speed, precision and safety.
Robotics can be used to replace manual labour and can
achieve efficiency improvements in the operations of LSO’s.
Office Technology:
Allows tasks to be completed in less time (efficiency) and
often more accurately.



Quality Control
TQM
Quality Assurance
Quality Control:
An inspection approach involving checking the final products
for defects and faults.
Method:
 removing samples from production line,
 visually inspecting or testing. Places responsibility for
quality on the Quality Control Manager or inspection team.
 Defective products are rejected and sometimes sold as
‘seconds’
Advantages:
Immediate recognition of defects by trained specialists,
Identifies issues in production process
Accountability for Quality rests with manager,
Clearly defined roles
Disadvantages:
Defects may be missed
Limited focus on production
General workers avoid responsibility for quality and may not feel
encouraged to make suggestions for improvement
Lack of ownership for quality (Them vs Us mentality)
Main Features:
 Holistic approach
 All workers equally participate in ongoing
improvements in quality
 Emphasis is on proactively detecting and rectifying
potential flaws/errors before they occur
 Time is given to work teams (quality circles) to
detect errors or suggest improvements to quality
Advantages:
 All workers and management have ownership and
responsibility for Quality
 Every aspect of organisation continually assessed
Disadvantages:
 Difficult to allocate responsibility for errors
 relies on all staff being motivated and highly skilled
to contribute
 good communication skills needed

Builds quality into work processes

The emphasis is on eliminating defects and reducing waste during the
production process.

An external organisation (Certification body) can audit the organisation’s
processes against published national or international standards.

Employees and management are encouraged to share responsibility for
improving quality.

A widely used international standard is the ISO 9001
Is the control of the raw materials necessary to the production of
a good or service. Adequate and timely supply of stock or
materials is crucial to the success of a business.
Materials management involves:
 Receiving and safely storing materials
 Controlling the release of materials into the production
process
 Minimising the holdings of surplus stock
 Forecasting and controlling the acquisition of stock
(Materials Handling, Stock Controller)
JIT receiving materials needed for production
precisely when needed. Avoids storage costs,
reduces capital investment and avoids obsolescence
and waste.
 MPS Master Production Scheduling: What is to be
produced and when.
 MRP Materials Requirements Planning: A computer
program that lists all materials involved in
production to meet scheduled production.

Inventory Control: Physical Stocktakes, Barcoding,
Computerised inventory recording, Security
cameras, Restricted Access.
 Supply Chain: Those suppliers that provide the
materials necessary to production must be able to
deliver quality materials, adapt to varying
production schedules, guarantee delivery at a
reasonable cost.

Considerations:









Space
Equipment
Safety
Volume of production, size of product
Storage, delivery of raw materials
Work flows, movement of workers, raw materials and
Customer Interactions, privacy, efficiency of service
provision
Toilets, lunchroom/recreational facilities, childcare
Potential for expansion in the future (Flexibility)





Fixed Position
Product Layout (Assembly Line Production)
Process Layout
Retail Layout
Office Layout
The product is in one place and workers and equipment come
to that work area.
Examples: Ship or Aircraft building, Roadworks, Bridge or
Commercial building
A sequential line is established that supports a repetitive or
continuous flow of production. High volume of a standardised
product with production runs generating large volumes of
outputs.
Eg. Motor Vehicle manufacturing, Milk processing plant.
Facilities are designed to handle a variety of processes and
resources are organised according to their function. Production
is in batches with relatively low volume and varied goods being
produced.
Eg. Hospital, Bank, Ripcurl T-Shirts, Soft drink manufacturing.
The aim of retail layout is to maximise customer
exposure to products.
Considerations include:
 Worker and Customer Safety
 Customer flow and access to goods
 Worker movement and positioning
 Product security
 Lighting, privacy, change rooms, toilet faciltities,
customer assistance, noise.
Offices deal with flows of information and
must effectively support the operations or
core business.
Considerations include:
 Worker movement and access to equipment
 Safety
 Privacy, noise transfer, security of
information
 Ventilation, Lighting, Climate control,
Ergonomics