Management and Supervision Q3

Question 1

An organisational structure shows how tasks are differentiated and distributed; management structure is an aspect of this. Discuss the effects an organisation’s structure has on its chain of command, span of control etc.

Answer 1

• Organisational structure shows how tasks are differentiated and distributed.
• Management structure is an aspect of this. It shows the distribution of authority and responsibility.
• chain of command is the organisation’s formal management hierarchy, that is the chain of superiors from lowest to highest rank.

Formal communication runs up and down the lines of authority, e.g. E to D to C to B to A in .the diagram below.
- If communication between different branches of the chain is necessary (e.g. D to H) the use of a ‘gang plank’ of horizontal communication saves time.

The length of the chains of command is influenced by the organisation’s:
• Work practices
• Geographical dispersion
• Size
• Controls
• Products and services (type, range, complexity)

An organisation has many such scalar chains of authority and command, but all of them originate at the topmost management authority which in a company is the board of directors. Managers at different levels in the hierarchy are all links in a chain of command.

One important problem for efficient and effective management is establishing the most suitable number of links in the chains of command.

(a) Short chains of command mean that:
(i) information - good or bad - can, in theory, flow quickly up and down, without going through too many levels.
(ii) junior managers can influence and obtain insight into senior management decisions.
(b) Long chains of command provide a satisfying career structure and reduce span of control.

Question 2

What is a matrix organisation?

Answer 2

Golden rule - One person should have one boss.
(However this is now impractical)

Matrix organisations are permanent arrangements, in which tow or more lines of authority overlap.

For example, a section leader in a regional accounts department might have to report both to a financial controller at head office and to a regional general manager, so that functional and geographic organisation run at the same time.

(+)

1) Greater flexibility and cooperation from everyone involved.
2) Coordination between business functions at local level.

(-)

1) Dual authority threatens a conflict between managers.
2) One individual with two or more bosses is more likely to suffer from stress at work.