Organisational design

• Organisational structure

  An organisation charts are diagrams representing the job titles and formal patterns of authority and responsibility within an organisation
• By clearly outlining an organisation structure you identify

  .Who is responsible for what areas of the business

  .who to go to with problems or queries arise

  .who is responsible to whom
• The form that a business’s internal structure will take depends on which factors

  The views and philosophy of management

  .The need for different communication systems

  .The industry in which the business operates

  .The skills of the workforce
• The views and philosophy of management

  Democratic managers encourage workers to take more responsibility; autocratic leadership styles will prefer a recognisable hierarchical design
• The need for different communication systems

  Business is likely to have many layers with narrow spans of control and definite paths of responsibility where communication is controlled and closely monitored, open and free communication is less hierarchical and more flexible
• The industry in within the business operates

  Retail encourages hierarchical ( clear but responsibilities); software development the boundaries are less clear and chains of command much shorter
• The skills of the workforce

  Highly skilled workers are less likely to need supervision, resulting in a flatter more open structure where involvement and decision making is encouraged at all levels
• The structure of an organisation will determine?

  The manner in which it operates and its performance
• An effective organisational structure will facilitate?

  working relationships between various sections of the organisation
• As a business expands,

  the chain of command?

  Span of control will?

  lengthen

  Widen
• Delegation

  The passing of authority (but not responsibility) down the organisation structure
• span of control

  the number of subordinates directly working under a superior
• Authority

  The right/power to carry out tasks or an activity
• Empowerment

  To give authority to an employee over how to complete their job and objectives
• delayering

  Removing layers of management from the hierarchy
• Hierarchy

  The structure of an organisation showing which members have authority over others
• Centralisation

  Decision making and responsibility are held at the top of an organisation structure
• Chain of command

  the way authority and power are passed down in a business
• Benefits of having wide span of control

  Shorter communication
• Benefits of having a long chain of command

  Chances for promotion
• Drawbacks of having a long chain of command

  poor communication
• Tall structure

  An organisation that has 5 or more levels of hierarchy
• Top of the hierarchy

  Senior management
• Bottom of hierarchy

  shop floor workers
• In between top and bottom hierarchy

  Middle management and supervisors
• Advantages of tall organisation

  .Control is at centre and senior management fully understand their job

  . Posts of communication and responsibility are clear

  . Departments understand their position in relation to other departments
• disadvantages to talk organisation

  . Senior management distanced from those who implement decisions

  . Vertical communication is difficult

  . Info distorted through layers

  . Long chains of communication could mean instructions are out of date when received

  . Communications between different departments is hampered (rubbish) by lack of direct contact between departments ( so departments become distan)
• Flat organisation structure

  An organisation that has few layers of hierarchy, and most commonly a wide span of control
• In flat structure,

  Span of control is?

  Chain of command?

  Wider

  Shorter

  Also fewer layers in the hierarchy
• If existing business wish to achieve a flat structure?

  Delaying must occur -normally achieved through compulsory redundancy programmes
• Delaying

  Removal of whole layers of hierarchy and management
• Advantages of flatter organisational structures

  . Increases motivation as a result of the delegation of authority

  . Decisions are made quickly by those nearest the ‘ground’;

  . Communication is quicker and suffer less distortion

  . Empowerment of workers
• Disadvantages of a flatter organisational structure

  . Lots of central control of the workforce

  . Different departments may not be working to the same objectives
• Tall vs Flat organisational structure

  A small organisation the owner may be able to make all the decisions and carry out all the managerial tasks.

  delegating tasks reduces the workload on the manager.-however not all owners/managers like delegating, preferring to keep as much control as possible
• Matrix structure

  A structure where an organisation is split into projects with teams with representatives from the different functional areas making up the teams
• Matrix structure

  
• If an organisation needs to run according to what projects they have to do so

  People usually work together in a team to achieve their project goals
• A person working on a matrix structure project would

  Have two bosses (the boss of the department they work in and the leader or manager of the particular project there working on

  A project may cover some or all the organisations departmental areas
• Matrix structure advantages

  . Allows specifically skilled workers to be used across projects

  . Is helps ideas and innovation spread through the business

  . There is more efficient use of Human Resources

  . Structure can improve flexibility and the motivation of employees, because of variety
• Matrix structures disadvantages

  . Defining what each employee‘s main responsibility are is difficult

  . Being answerable to two bosses may put a lot of strain on individuals

  . Expensive because extra support systems per group and need different technology for each

  . Employees may be used to different cultures or styles of working