Organisational Structures

• organisational structure - how people and departments are organised within a business
• organisational chart - a diagram that shows how the workers are organised in a business and who is in charge of whom
• The organisational structure is critical to ensure that all tasks are completed efficently
• layers - the number of levels of authority that there are in the chain of command
• delayering - when a business reduces the number of layers in its organisational structure, making it flatter
• authority - the power that one person has to make decisions and to control what other workers do
• accountability - the responsibility that a person has for a job meaning that they will take the blame for what goes wrong as well as the credit for what goes well
• chain of command - the links in the levels of authority from those at the top with the most authority to those at the bottom with the least
• subordinates - the workers that a line manager is responsible for
• span of control - the number of subordinates who report directly to the line manager
• delegation - the process of giving a managers authority to a subordinate to make decisions for which that manager is responsible
• Organisational charts show:

  • what a person is accountable for
  • who is responsible for functions and tasks
  • which work is delegated to others
  • how different departments are linked
  • lines of communication within organisation
  • who a worker is managed by and whom they must take orders from
• Tall organisations - an organisational structure with lots of layers of hierachy, often with narrow spans of control
• Tall Organisational Structures:

  • span is control is narrower meaning managers have less people to look after
  • plenty of opportunites for promotion which motivates employees
  • clearer and faster communications as clear routes where messages are sent
  • clear who workers are responsible to
• flat organisations - an organisational structure with few levels of hierarchy, often mangers have wide spans of control. Little to no management grades in the organisation
• Flat organisations:

  • lines of communication & responsibilities of workers are clear. Communication from top to bottom may be quicker as fewer layers
  • Fewer communication mistakes as less layers
  • People at bottom can easily share ideas with the top as they know what they are like
  • Wider spans of control meaning work must be delegated and authority can be shared
• Reasons for different organisational structures:

  • scale of business
  • roles & responsibilities of each worker
  • nature of business
  • type of leadership
• Why do businesses have different organisational structures?

  Scale of business

  • Large business require a hierarchical structure to ensure clear lines of communication & control from top to bottom
  • Effective communication is imperative in business success
• Why do businesses have different organisational structures?

  Roles & responsibilities of each workers

  • These will be listed and detailed in the job description
• Why do businesses have different organisational structures?

  Nature of the business

  • Flat organisations suit creative businesses as it encourages two-way communication between workers at different levels - this is what leads to development of new ideas
• Why do businesses have different organisational structures?

  Type of leadership

  • Some leaders are naturally autocratic and like having control over all decisions. This control can be provided from a tall structure