Organisational culture - 2.2
Key terms
Delegation
Span of control
Levels of hierarchy
Chain of command
Bureaucracy
Centrilization
Decentrilization
De-layering
Associated with autocratic leaders who want to keep a tight control of the business. The leader is in the MIDDLE of all decisions or forms of communication
The link in levels of authority from those at the bottom of the chain until those at the top
A hierarchy is a pyramid-like structure. The higher a level is in the hierarchy, the greater the authority or importance.
There can be a tall or flat hierarchical structure
The number of subordinates who report directly to the line manager
Delegation is the assignment of responsibility or authority to another person to carry out specific activities.
The importance of rules and procedures and the set way of doing things
A transfer of decision-making power. Decentralisation is usually achieved by the delegation of authority to individual or groups at all levels of an organisation.
Reducing the number of layers int he hierarchy structure, many businesses aim for a flatter structure to reduce costs
Adv:
- Reduce costs
- More responsibility for ppl who did not have before
- Shortens the chain of command
Disadv:
- Bad press
- Flatter structure may not work the best for type of firm
- A lot more responsibility for managers who remain
Requires a lot of paperwork and red tape. More likely to be a tall hierarchical structure - Military
Types
Flat
Tall
Hierarchical
By product
By region
By function
A flat organisational structure is one with few levels of hierarchy, typical for small businesses.
A structure with multiple levels of management, typical for large and complex organisations
A tall structure with many levels of hierarchy, similar to a pyramid
The business is organised into departments focused on different products.
A type of organisational structure used by organisations with operations in different geographical locations
A type of structure where the organisation is divided into smaller groups based on specialised functional areas
Changes
The matrix structure
Adv:
- Gives senior managers more time to focus on their work
- Shows trust in subordinates which can be motivating
- Develops and trains staff for more prominent roles
Disadv:
- Unsuccessful if there is no authority or supervision
- Managers may only delegate the boring tasks to get it of their hands
- If the task is not well defined or inadequate for the capabilities of the delegate, it will not be well done
It will have few layers of hierarchy, a short chain of command and wide span of control.
The middle management is eliminated and the employees are empowered to make decisions independently.
Many levels of authority between the top manager and the lowest-level employee. There is a long chain of command as communication flows from top to bottom and there is little to no delegation of authority and a narrow span of control.
E.g. the army, the church...
A bureaucratic organisational structure with clear seniority. There is a long chain of command and narrow span of control. This type of structure is rigid and change does not happen easily.
The business is organised into departments each focuses on a different product. Employees are focused on the specific market segment related to their product and meet the customers needs more effectively
Offices at local + national + international locations. Each location is overseen and directed by 1+ executives bearing the responsibility for the operation and its finances.
Employees are grouped according to a specialised set of roles or tasks
The level of bureaucracy in this organisational structure makes it difficult for organisations to respond to changes in the market quickly.
The shamrock model
Created in response to cost pressure and the need for greater flexibility
A company structure in which the reporting relationships are set up in a grid rather than in a hierarchical way
It interlinks people from all levels in the organisation
A project is given to a group of people in an organisation under dual supervision - a project manager and a functional manager
The model has three leaves - the flexible workers, the outsources workers and the permanent / core workers.
The core staff: are full time, must have a permanent salary. these workers are central to the survival of the organisation, as they are expensive their numbers are reduced in most organisations
The flexible workers: These are on temporary or part-time contracts. They are called when needed. These workers are the most likely to lose their jobs during a recession
The outsourced workers: These workers provide specific services inessential to the core of the business -- payroll, catering etc.
Communication
Formal: Established and agreed procedures (emails or meetings)
Informal: Channels not formally recognised (hearing it from others)
Transferring info from one part of the business to the other that leads to an outcome or action
Barriers
Adv:
- Attention to efficiency, costs and productivity
- Core workers have high job security
- workers are able to develop portfolio working
Disadv:
- Aims of temporary workers or contractors may be different that that of core workers.
- Contractors have their own monitoring, overheads - can cause conflict with core workers
Cultural differences: Each ethnic culture has different belies or practices. These can lead to different behaviours or thinking.
Language: This can cause misunderstandings or time delays
Cultural knowledge: Knowledge of values and norms, traditions and lifestyle is essential for employees who intend to live and work in a foreign country - this may cause misunderstanding
Non-verbal communication: Body language, perception of time and space, volume and pitch of voice when talking, and touch can be major sources of misunderstanding - speaking in different ways in foreign areas may be seen as rude or cause misunderstanding
ICT innovation
Caused by intranet, clouds, latest technology etc. These can be very advantageous for the firm not only with internal but also external.
Limitations:
Costs can be very high, security issues and raining for employees. They also reduce social contact and can create isolation.