lecture 6 organisational structure Flashcards
what is organisational structure
formal system of task and reporting relationships
that controls, coordinates and motivates employees
so that they work together to achieve organisational goals.
Huczynski and buchanan
Purpose of structure
To divide tasks of org into manageable sub groups
tasks are coordinated and controlled
Impact of structure on others
affects peoples behavior and productivity
Dimensions of structure
Departmentalism, Centralisation, Specialisation, Formalisation, Standardisation.
Departmentalism
functional, product, market or customer, geographical, or process
Functional
e.g. marketing finance. activities grouped together
coordination, less duplication
parochial viewpoints can arise
Process
grouped according to narrow range of specialist skills. e,g, manufacture or assembly
Product or service
distinct product lines
specialisation, coordination
too product focused, duplication of effort
market or customer grouping
serve particular group of customers
tailor made
duplication of effort, unaware of innovations
Geographical grouping
reduction in transport costs
coordination and control difficult
Matrix structure
Functional and product
innovative, improved coordination
dual loyalty, power struggle of resources
Centralisation
people at top and coordinate more effectively, less duplicating of resources, common policies are easier to adapt, faster decision making.
impact of poor structure
Bad motivation & morale, poor decision-making
