Organisational-Structure

SunderlandschoolofmanagementOrganisationalStructureSunderlandschoolofmanagementHowtomanageyourclass(organization)Inyourclass,thereare()students.Soyoumustfindaneffectiveapproachtomanageyourclass.Otherwiseyourclasswillbedisordered.Sohowtodealwiththisquestion?SunderlandschoolofmanagementDiscussionswithyourclassmatesbetweengroupsSunderlandschoolofmanagementOrganisationalStructureInordertounderstandhowanorganisationworksanddevelopsitisnecessarytoanalyzeandstudystructure.SunderlandschoolofmanagementOrganisationalStructureItisanimportantmanagementconsiderationbecause:Inanybusiness‘howtostructure?’isabasicquestionseniormanagerswillbeconfrontedwith,often!Itisanimportantfactorinwhetherornotanorganisationiseffective.ItcanalsoaffecthowthepeopleinitbehaveSunderlandschoolofmanagementOrganisationalStructureThepurposeoforganisationalstructureistodivideupandco-ordinateactivitiesAccordingtoLaurieJMullins(2005)“Structureisthepatternofrelationshipsamongpositionsintheorganisationandamongmembersoftheorganisation.Thepurposeofstructureisthedivisionofworkamongmembersoftheorganisation,andthemembersoftheiractivitiessotheyaredirectedtowardsachievingthegoalsandobjectivesoftheorganisation”SunderlandschoolofmanagementTypesofStructureCanbetwotypesofstructure:FormalInformalSunderlandschoolofmanagementFormalStructureDeliberatelyconstructedTolinkindividualsinanestablishednetworkofrelationshipsTogrouptogetherthetasksrequiredtofulfilorganisationalobjectivesAbilitytoallocateauthoritytoensurecertaintasksareperformedTocoordinatetheobjectivesofseparatedepartmentsToenabletheflowofworkSunderlandschoolofmanagementInformalStructureInformalstructureisprevalentinallorganisationsMaysupplementandimprovetheformalstructureInformalorganisationismadeupof:GroupsorcliquesInformalcustomsInformalchannelsofcommunicationSunderlandschoolofmanagementOrganisationalStructureSowhatinfluencesorganisationalstructure?SizeThenatureoftheworkTheenvironmentitoperatesinHowoldthecompanyisCultureLeadershipSunderlandschoolofmanagementOrganizationalStructureElementsSpanofControlCentralizationDepartmentationFormalizationElementsofOrganizationalStructureSunderlandschoolofmanagementSpanofcontrolReferstothenumberofsubordinatesimmediatelyreportingtoasuperiorofficialAmanagers’capabilitylimitsthespanofcontrolThenatureofthemanagersworkloadSubordinates’workInteractionbetweenthesubordinatesSunderlandschoolofmanagementSpanofControlNumberofpeopledirectlyreportingtothenextlevelAssumescoordinationthroughdirectsupervisionWiderspanofcontrolpossiblewithothercoordinatingmechanismspresentSunderlandschoolofmanagementTrendTowardFlatterStructuresFirmsmovingtowardflatterstructuresCutscostsPutsdecisionmakersclosertofront-lineinformationSupportsempowermentProblem:riskofcuttingtoomuchmiddlemanagementSunderlandschoolofmanagementTallandflatAtallorganisationisonewhichhasalargenumberoflevelsofmanagementhierarchyAflatorganisationisonewhichhasasmallnumberoflevelsofmanagementhierarchyDelayeringisthereductionofthenumberofmanagementlevelsfrombottomtotopSunderlandschoolofmanagementTallStructureSunderlandschoolofmanagementTallStructureAdvantagesThereisanarrowspanofcontrolieeachmanagerhasasmallnumberofemployeesundertheircontrol.Thismeansthatemployeescanbecloselysupervised.Thereisaclearmanagementstructure.Thefunctionofeachlayerwillbeclearanddistinct.Therewillbeclearlinesofresponsibilityandcontrol.ClearprogressionandpromotionladderThefreedomandresponsibilityofemployees(subordinates)isrestricted.Decisionmakingcouldbesloweddownasapprovalmaybeneededbyeachofthelayersofauthority.Communicationhastotakeplacethroughmanylayersofmanagement.Highmanagementcostsbecausemanagersaregenerallypaidmorethansubordinates.Eachlayerwilltendtopayit’smanagersmoremoneythanthelayerbelowit.SunderlandschoolofmanagementFlatstructuresSunderlandschoolofmanagementFlatstructuresAdvantagesMore/Greatercommunicationbetweenmanagementandworkers.Betterteamsprit.Lessbureaucracyandeasierdecisionmaking.Fewerlevelsofmanagementwhichincludesbenefitssuchaslowercostsasmanagersaregenerallypaidmorethanworker.WidespanofcontrolDisadvantagesWorkersmayhavemorethanonemanager/boss.Maylimit/hinderthegrowthoftheorganisation.Structurelimitedtosmallorganisationssuchaspartnerships,co-operativesandsomeprivatelimitedcompanies.Functionofeachdepartment/personcouldbeblurredandmergeintothejobrolesofothers.SunderlandschoolofmanagementCentralisationandDecentralisationCentralisation–TheconcentrationofauthorityformakingmostdecisionsatthetoplevelofmanagementDecentralisation–ThedispersionofauthoritytomakedecisionsthroughoutalllevelsoftheorganisationSunderlandschoolofmanagementFormaldecisionmakingauthorityisheldbyafewpeople,usuallyatthetopCentralizationDecisionmakingauthorityisdispersedthroughouttheorganizationDecentralizationCentralizationandDecentralizationSunderlandschoolofmanagementCentralisationandDecentralisationWhatdoyouthinkaretheadvantagesanddisadvantagesofCentr