Organisational Structure Flashcards
Organisational Structure
Defines how job tasks are formally divided, grouped and co-ordinated.
Structure should follow strategic intent;
-Goals
-Strategy
-Objectives
-Plans.
6 Elements
Work Specialisation Departmentalisation Chain of Command Span of Control Centralisation and Decentralisation Formalisation
Work Specialisation
The degree to which tasks in organisations are subdivided into separate jobs.
Pro’s
Con’s
Departmentalisation
The basis by which jobs are grouped together
- Function
- Project
- Geography
- Process
- Customer
Chain of Command
The unbroken line of authority that extends from the top of the organisation to the lowest person and clarifies who reports to whom.
Span of Control
the number of sub-ordinates a manager can efficiently and effectively direct.
Pro’s
Con’s
Centralisation & Decentralisation
The degree to which decision making is concentrated at a single point in the organisation.
Pro’s
Con’s
Formalisation
The degree to which jobs within the organisation are standardised
- High formalisation; minimum worker discretion in how to get job done, many rules & procedures to follow
- Low formalisation; Job behaviour are non-porgrammed, allows employee flexibility.
Simple Organisational Structure
A structure characterised by;
- Low degree of departmentalisation
- wide span of control
- Centralised authority
- Little formalisation
Bureaucracy
A structure of highly operating routine tasks achieved through specialisation, very formalised rules and regulations, task are groups into functional departments, centralised authority, narrow spans of control and decision making that follows the chain of command.
Matrix
A structure that creates dual lines of authority and combines functional and product departmentalisation.
Key Elements;
-Gains the advantage of function and product departmentalisation
-Facilitates co-ordination of company and inter-dependent activities
-Breaks down chain of command concepts
Virtual Organisation
A small core organisation that outsources its major business functions
- Highly centralised with little or no departmentalisation
- Provides maximum flexibility while focusing on what the organisation does best.
How do organisations differ
Organisational Size; as org grows they become more mechanistic, more specialised with more rules and regulations
Technology; how an org transfers its inputs into outputs
Environment; institutional forces outside the org that potentially affect the org’s performance. Capacity, volatility and complexity.
The role of the external environment
Most issues are a result of human error.
Fundamental weakness in sense making and interpretation
-Personal; due to bias
-Organisational; managers lock into conclusion.
To identify and minimise bias;
a) Look fro weak signals deliberately - assume facts are missing
b) Use a fluid model for sense-making - allow alternative views
c) Listen to customers & competitors
The role of internal environment
The way people are seen, regarded and treated in or limited to;
1) Strategic Intent
2) Prevailing organisation theory in use (how do we think orgs work)
3) Content in which behaviour occurs and management practices reinforce that context.
