Organisation Structure: UNIT:2
Organisation Structure: UNIT:2
Organisation Structure: UNIT:2
STRUCTURE
PAGE 211
CHAPTER 12
UNIT:2
ORGANISATIONAL STRUCTURE
Organisational structure is the framework
for identifying & organizing the tasks to be
performed within an organisation.
Structures can be illustrated by means of an
organisational chart.
ORGANISATIONAL STRUCTURE
THIS CHART DISPLAYS :
Who has overall responsibility for decision
making.
Individual workers can identify their position.
Chain of command
Span of control
The identity of the supervisor to whom each
worker should report to is made clear.
Formal channels of communication both
vertical & horizontal. This aid the
investigation of communication problems.
DIFFERENT TYPES OF
ORGANISATIONAL STRUCTURE:
The hierarchical structure - The order of
levels of management of a business from the
lowest to the highest.
ADVANTAGES OF HIERARCHICAL
STRUCTURE
Decision-making starts at the top but may be
passed to lower levels.
The role of each individual will be clear & well-
defined.
Vertical divisions could based on region or
country or any category. E.g.: Consumer goods &
industrial goods.
If staff know where they are in the organisation &
what opportunities exist for promotion. This can
be motivating to some employees who are
ambitious as they can see the jobs they could do
in the future.
DISADVANTAGES OF
HIERARCHICAL STRUCTURE:
Few horizontal links & this can lead to lack
of coordination between them.
It is very inflexible & often leads to change
resistance because all managers tend to be
defending their own position.
MATRIX STRUCTURE
THE MATRIX STRUCTURE IS AN STRUCTURE THAT PUTS MANAGERS INTO PROJECT TEAMS THAT CUTS ACROSS THE DEPARTMENTAL LINES & CREATES PROJECT
TEAM FROM ALL DIVISIONS. IT ENABLES WORKERS FROM DIFFERENT FUNCTIONS TO WORK TOGETHER WITHOUT CONSTANT NEED TO REFER UP THE
HIERARCHY, SO FASTER DECISION MAKING.
MATRIX STRUCTURE
Disadvantages of delegation:
a) Unsuccessful if the task is not made clear, if training
is not provided & if sufficient authority is not
transferred.
b) Managers may delegate boring jobs to worker. This
will not prove to be motivating.
CENTRALISATION & DECENTRALISATION
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