13. Principles of Organisational structure Flashcards
What is Organisational structure?
The formal system of task and reporting relationships that control, coordinate and motivate employees to work together to achieve organisation goals
Method of controlling business effectiveness
Identifies departments within an organisation
The formal reporting structure
Systems to ensure communication, coordination and integration within departments
What is the purpose of Organisational structure?
All business have to organise what they do
A clear structure makes to easier to see which part of the organisation does what
Coordination and control of activities, divided into units, to achieve organisational goal and effectively manage the business
According to the Leavitt diamond, what are the 4 mutually interacting classes of variables within the environment of an organisation?
Objectives - of Organisation
Structure - company structure
Technology - Tools used by people to perform tasks
People - Those performing the tasks
Why do Organisational structures change?
According to the Leavitt diamond the 4 mutually interacting classes of Objectives, Structure, Tech and people with an organisational environment are all impacted should just one class change
Name 3 ways to structure a business?
By function By product or activity By area By customer By process
What are the 6 key elements that should be addressed by managers when designing an organisational structure?
Work specialisation Span-of-control - How many people can that person control? Chain of command Departmentilisation Formalisation Centralisation
What is work specialisation?
The degree to which work tasks are subdivided into separate jobs
How are BAs involved in work specialisation?
BAs involved in defining procedures and tasks required for business improvement
With a need to consider corporate culture
What is the difference between a Job definition and a Job description?
Job definition - Task requirements of each job in an organisation, considering degree of specialism. Allows employees to know what is expected of them but is rigid
Job description - Statement of what an individual should do on the job including Job location, position in hierachy, responsibilities, relationships to other roles
What is Span-of-control?
The number of subordinates who report directly to a single supervisor/manager
What is Heirachy?
The number of levels of authority found in an organisation
What is the difference between a wide and narrow span of control?
The wider span-of-control the fewer hierarchical levels, a FLATTER structure, reduced manager contact, more responsive
A narrow span-of-control has more hierarchical levels , TALL structures, increased management contact, more control
What factors might encourage a wide span of control?
People doing similar tasks
Competent, able and responsible subordinates
Interaction required - The lower interaction required with subordinates the wider a span of control can be e.g. deliveroo
Standardised procedures
Planning and coordination required - The less p&C required the wider it can be
What factors might encourage a narrow span of control?
Complex of activities
Geographical proximity - the more dispersed the narrower span of control required
High frequency of new problems
Knowledge gap between managers an subordinates expertise
Manager’s supervisory requirement
Planning and coordination required - the more P&C required the narrower it should be
What is the ‘Chain of command’
The unbroken line of authority from the bottom to top of an organisation clarifying who reports to whom
Line can’t be broken going up but can be broken going down “do this soldier” “Yes Captain”
