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Business: Chapter 8: Organising - Coggle Diagram
Business: Chapter 8:
Organising
Definition of Organising: Organising involves arranging all the resources (employees,machines and money) of the business into the most suitable form to achieve its objectives. This means drawing up an organisation structure.
Functional Organisational Structure: This involves splitting the business up into different jobs or functions. A person is out in charge of each functional department. They are responsible for ensuring that the department achieves its objectives.
Matrix Organisation Structure: This is a team based structure with expertise from different departments ie marketing, finance, information, production etc. All team members have an input into decision making and are answerable to a project leader who is responsible for co-ordinating team effort and ensuring task completion. It it generally set up to carry out specific projects eg product development.
Chain of Command: This is the line on which orders and decisions are passed down from top to bottom of the hierarchy and feedback is passed back up. Clear structure to the organisation and clear lines of authority exists which improves co-ordination and motivation since employees know what is expected of them and when. There is accountability as someone is responsible for each section. Instructions flow downward and accountability flows upward which releases top management from micromanaging operations so they can focus on the overall strategy of the business. It creates a clear communication line between the top and bottom of the business.
Span of control is the number of people who report directly to one manager in a hierarchy. The span may be wide or narrow. The more people there are under the control of one manager, the wider the span of control. Less means a narrower span of control. It is up to each individual manager to delegate work to their subordinates in the span
Advantages of Organising:
Organising helps solve problems quickly
Organising improves efficiency
Organising helps the business cope with change
Organising minimises waste
Advantages of a Functional Organisational Structure
Specialisation
Accountability
Clarity
Disadvantages of a Functional Organisational Structure
Isolation
Co-ordination
Advantages of a Matrix Organisation Structure
Better Co-ordination
Better ideas
Develops Employees
Disadvantages of a Matrix Organisation Structure
Two Bosses
Increased Costs
Slow Decision Making