Please enable JavaScript.
Coggle requires JavaScript to display documents.
2.2 ORGANISATIONAL STRUCTURE (delegation and accountability (advantages…
2.2 ORGANISATIONAL STRUCTURE
DEFINATION
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 organisation
organisational structure indicates for:
who has overall responsibility for decision-making
the formal relationship between people and departments
how accountability and authority are passed down the organisation
the number of subordinates reporting to each more senior manager
formal channels of communication both vertical and horizontal
to identified the supervisor or manager to whom each worker is answerable and should report
types
tall (vertical) structure
one with many levels of hierarchy and, usually, narrow spans of control
problems
communication through the organisation can become slow with messages becoming distorted or 'filtered' in some way
spans of control
are likely to be narrow
the number of subordinates reporting directly to a manager
a greater sense of remoteness, among those on lower levels, from the decision-making power at the top
flat (horizontal) structure
one with few levels of hierarchy and wide spans of control
encourage managers/supervisors to delegate more extensively as they cannot effectively control the work of a large number of employees
short
chain of command
the route through which authority is passed down an organisation
better communication between the top of the hierarchy and the lower levels
delegation and accountability
delegation
passing authority down the organisational hierarchy
accountability
the obligation of an individual to account for his or her activities and to disclose results in a transparent way
advantages
gives senior managers more time to focus on important, strategic roles
shows trust in subordinates and this can motivate and challenge them
develops and trains staff for more senior positions
helps staff to achieve fulfilment through their work (self-actualisation)
encourage staff to be accountable for their work-based activities
disadvantages
the delegation will be unlikely succeed if the task is not well defined or if inadequate training is given
delegation will be unsuccessful if insufficient authority(power) is given to the subordinate who is performing the task
managers may only delegate the boring jobs that they do not want to do -
this will not be motivating
delayering
removal one or more of the levels of hierarchy from an organisational structure
advantages
reduce business costs
shortens the chain of command and should improve communication through the organisation
increases span of control and opportunities for delegation
increase work motivation due to less remoteness from top management and have greater chance of having more responsible work to perform
disadvantages
could be one-off costs of making managers redundant; redundancy payments
increased workloads for managers who remain - this could lead to overwork and stress
centralisation and decentralisation
centralisation
keeping all of the important decision making powers within head office or the centre of the organisation
advantages
a fixed set of rules and procedures in all areas of the firm should lead to rapid decision-making - (there is a little scope for discussing)
the business has consistent policies through out the organisation; prevents conflicts between the divisions and avoid confusion in the mind of the consumers
senior managers take decisions in the interest of the whole business - not just one division of it
central buying should allow for greater economies of scale
senior managers at head office will be experienced decision-makers
decentrsalisation
decision making-powers are passed down the organisation to empower subordinates and regional/product managers
advantages
more local decisions can be made which reflect different conditions
junior managers can develop skills
delegation and empowerment are made easier and will increase motivation
decision-making in response to changes, should be quicker and more flexible as head office will not have to be involved every time
bureaucracy
an organisational system with standardised procedures and rules