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The nature of organisation (What is organisation structure? (Tall vs flat,…
The nature of organisation
What is an organisation?
Group of individuals working together to achieve one or more objectives
Five features
Composed of individuals & groups
Achieving collective goals
Consist of different functions
Functions need to be coordinated
Individual members who may come & go
Mintzberg's five components
Strategic apex
Relationship with it's environment with the mission
CEO = responsible to owners, government agencies, unions, communities
Middle line
Managers who convert objectives & broad plans, so workers can carry out operational plans.
Technostructure
Personal have appropriate skills by organising training programmes
Support staff
Administrative functions = legal advice, public relations, mailroom, cafeteria
Operating core
Basic work of producing the products or delivering services Efficiently
Why they exit?
In house may be chapter as takes out negotiating terms
Economic development
What types?
For-profit (commercial) = provide goods & services & employ people
Not-for-profit = public sector run by government
Public hospitals
Armed forces
Most school & University
Government departments
What is organisation structure?
Relationship between functions & position
Authority & responsibility
Good communication between departments
Management accounting system = monitor outcome, feedback about performances
Influencing & controlling the behaviour of individuals within organisation
Measures & monitors their performance to achieve objectives
This all compares to the organisation structures
Principles
Specialisation = Specialised knowledge should assist with efficiency & effectiveness
Coordination = ensures the various actions work towards same objectives
Tall vs flat
Large number of levels "tall"
Small number of levels "flat"
Removal of various levels have made tall to small
As result
Information technology removed middle mangers
Empowerment at low levels to take action & make decisions
Benefits
Reduction in cost, improved performance, improved communication
Forms structure
Six important
Functions structure = type of jobs
Product or services structure = group together
Geographical structure = physical location
Matrix structure = combine above
Project team = organic structures
Hybrid structure = changes when necessary
Recent trends
Shorten the chain of command to increase speed of decisions
Empowered, multi-skilled workforce
Customer service orientation
Able to be flexible organisation
departments & functions
Production
Planning & scheduling
Control & supervision
Managing product quality
Maintenance plant & equipment
Control of inventory
Production methods & factory layout
Research & development
Developing new products
Purchasing
Purchasing Mix
Quantity
Quality
Price
Delivery - lead times
Trading-off
Marketing
Marketing mix
Product
Price
Promotion
Place
HRM
Recruitment
Training & development
Employee relations
Grievance procedures & disciplinary matters
Health & safety
Redundancy procedures
Accounting & finance
Financial records
Preparing financial statements
Payroll admin
Preparing MA info to plan, control, descisions
Decentralisation & centralisation
Centralisation = decisions by senior manages/ owners
Decentralisation = decisions to delegated to people at lower levels
Advantages
Specialisation = better quality
Timeliness = Quicker decisions
Motivation = commitment & hence performances
HRD = learn their trade
Organisation segment performance comparison
Disadvantages
Dysfunctional decision making
Loss of control
Increase cost of control
Responsibility centre main types
Cost centre = budget variances report
Revenue centre = revenue earned
Profit centre = costs & revenues judgements
Investment centre = working capital
The environment
PEST
Political/legal
Ways doing business law of tort
Protection of consumers
Safe working
Data protection 98
Companies act 2006
Employment law
Environment legislation
Tax law
EU laws
Economic
Inflation
Interest rates
economic growth
Exchanges rates
Tax rates
Government sending
Social
Demography
growth rate of the county
HR
Factor
Social class
middle, working
Income, status, education
Market segments
Cultures
Attitudes, values goals, practise
Behaviours
Nationalities, religions, racial groups
Technology
Wider spans of control
Control information in real time
EDI & customer database
Emails & online conference, voicemail
Telecommuting
Increses monitoring & control