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2.2 ORGANISATIONAL STRUCTURES (Delegation & Accountability (adv of…
2.2 ORGANISATIONAL STRUCTURES
the internal, formal framework of a business that shows the way in which management is organised and linked together and how authority is passed through the org.
types
by product
by function
by region
factors influencing
size of business
number of employees
style of leadership and culture of management
retrenchmnet (economic recession)
corporate objectives
new technologies
Key Principles of Org Structures
LEVEL OF HIERARCHY
tall structure
problems
slow communication
narrow spans of control
likely to be a greater sense of remoteness
flat structure
advantages
encourage managers/supervisors to delegate more extensively
short chain of command
better communication
Delegation & Accountability
delegation ; passing authority down the organisational hierarchy
accountability ; the obligation of an individual to account to his/her activities and to disclose result in a transparent way
adv of delegation
give senior managers more time to focus on important strategic roles
motivate and challenge subordinates
develop and trains staff for more senior positions
disadv of delegation
unlikely to succeed if inadequate training/task is not well defined
unsuccessful if insufficient authority is given to the subordinate
Delayering
removal of one or more of the levels of hierarchy from an org structure
adv
reduce business cost
shortens chain of command & improve comm
increases spans of control
increase workforce motivation
disadv
increase workloads
redundancy payments
Bereaucracy
an organisational system with standardised procedures and rules
Centralisation & Decentralisation
Centralisation ; keeping all of the important decision-making powers within head office/the centre of the org
adv
rapid decision-making
consistent policies
senior managers take decisions in the interest of the whole business
greater economies of scale
Decentralisation ; decision-making powers are passed down the organisation to empower subordinates and regional/product managers
adv
more local decisions can be made which reflect different conditions
more junior managers can develop skills
easier delegation and empowerment
decision-making in response to changes
Changes in Organisational Structure
THE MATRIX STRUCTURE
an organisational structure that creates project teams that cut across traditional functional departments
adv
allows total comm between all members of the team
more ideas and successful solutions
respond to changing markets/tech conditions
disadv
less direct control from the top
conflict of interest
HORIZONTALLY LINKED STRUCTURE
HANDY'S SHAMROCK ORG
core workers
flexible workers
outsourced work
THE FLEXIBLE FUTURE
Communication in an Org
EFFECTIVE COMM
key features
sender/transmitter of the message
clear message
appropriate medium
receiver
feedback to confirm receipt and understanding
importance
employee motivation & labour productivity
the number and quality of ideas generated by the workforce
speed of decision-making
speed of response to market changes
reduce the risk of errors
effective coordination between departments