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Organisational Structure

The document discusses organizational structure and management. It defines key terms like organizational structure, job description, and delegation. It explains the benefits of organization charts for showing reporting lines and responsibilities. There are different types of managers like line managers who oversee subordinates and staff managers who provide specialist support. Decentralizing decision making allows those closer to the operations to make quicker decisions while centralization keeps most power at the top levels of management. Different forms of decentralization include functional, federal, regional, and using project teams.

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Shilpa Alagh
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63 views

Organisational Structure

The document discusses organizational structure and management. It defines key terms like organizational structure, job description, and delegation. It explains the benefits of organization charts for showing reporting lines and responsibilities. There are different types of managers like line managers who oversee subordinates and staff managers who provide specialist support. Decentralizing decision making allows those closer to the operations to make quicker decisions while centralization keeps most power at the top levels of management. Different forms of decentralization include functional, federal, regional, and using project teams.

Uploaded by

Shilpa Alagh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Organisational structure

Definitions to learn Organisational structure: levels of management and division of responsibilities within an organisation. Job description: outlines the responsibilities and duties to be carried out by someone employed to do a specific job. Delegation: giving a subordinate the authority to perform particular tasks. It is very important to remember that it is the authority to perform a task which is being delegated-not the final responsibility. Advantages of an organisation chart Shows how everybody is linked together in the organisation. All employees are aware of which communication channel is used to reach them with messages and instructions. Every individual can see their own position in the organisation. They can identify who they are accountable to and who they have authority over. Employees can see who they should take orders from. Shows the links and relationships between different departments within the organisation. Everyone is in a department and this gives them a sense of belonging. Chain of command: structure in an organisation which allows instructions to be passed down from senior management to lower levels of management. Span of control: number of subordinates working directly under a manager. The longer chain of command, the taller will be the organisational structure and the narrower the span of control. When the chain of command is short, the organisation will have wider spans of control. De-layering: removing a whole level of management. Line managers: have direct authority over subordinates in their department. They are able to take decisions in their department area. Staff managers: specialist advisers who provide support to line managers and to the Board of Directors. Advantages and disadvantages of employing staff managers as well as line managers Staff managers can provide advice to line managers on particular issues, such as new computer systems or how economic changes may affect the Marketing department. This will help give line managers more time to concentrate on their main tasks-organising their department and taking decisions.

Decentralisation
A decentralised management structure means that many decisions are not taken at the centre of the business at all but are delegated to a lower level of management.

A centralised management structure means that most decisions are taken at the centre, or higher levels of management. There is, therefore, little effective delegation. Advantages of a decentralised management structure Decisions are taken by managers who are closer to the action. As decentralisation is a form of delegation, managers who are now able to take decisions will feel more trusted and will have more satisfaction from their work. Decisions can be made much more quickly than if the Board of Directors or senior managers have to be given all the information before making a decision. When the environment in which a business operates is changing very quickly, for example because of new competitors, then it is very important to be able to take speedy decisions.

Different forms of decentralisation


Functional decentralisation Specialist departments are delegated decision-making authority. The most common functional departments are: - Marketing: authority over market research, new product plans, packaging, promotion and distribution. - Production: authority over production resources such as factories, machines and stocks. - Finance: authority over raising finance, making payments such as wages and keeping accounting records. - Human resources: authority over recruitment, pay levels and training of staff. Federal decentralisation Authority is divided between different product lines of the business. Ex.: a vehicle manufacturer could have separate truck, car and bus division Regional decentralisation A business, such as multinational, has bases in many different regions or countries. Each one has authority over its own operations. Decentralisation by project teams A particular project, for example, the design of a new aircraft, is given to team involving people from all functional areas. References

Henttonen, P. & Kettunen, K. 2011, "Functional classification of records and organisational structure", Records Management Journal, vol. 21, no. 2, pp. 86-103.

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