2.2

organisational structure

The formal arrangement of jobs within an organisation, heirarchical arangemnt and shows formal interrelationships

Accountability

extent to which person is held responsible for success or failure of task

Bureaucracy

administrative and formal rules of an organisation that governs business activities. Involves prescribed rules and policies, strict procedures and structures

Centralisation

Majority of decisions are made by small group of people who hold decision making power and authority

Chain of command

Formal like of authority in a business through which formal communication and orders are passed down

Decentralisation

When decision making authority of responsibility are shared within organisation

Delayering

The removal of one or more of the levels of hierarchy from an organisational structure to flatten structure

Delegation

giving a subordinate the authority to perform particular tasks

flat structure

Few layers of hierarchy and managers tend to have wide span of control

levels of heirarchy

Number of level of formal authority within organisation, shown in organisational chart

Line manager

the person who is directly responsible for managing the work of someone else in a company or business, and who is one level above that person

managers

people who are responsible for day to day running of business of department

Span of control

Refers to number of employees overseen by manager

Tall structure

Many layers of hierarchy, narrow spans of control.

Matrix structure

flexible organization of employees from different departments within an organization temporarily working together on a particular project.

Organisational chart

Diagrammatic representation of firms formal structure

Responsibility

Refers to who is in charge of who and in what capacity

Uses of organisational structure

Chain of command, diff departments, channels of communication, level of hierarchy, span of control

Pros and Cons of Centralization

Pros : fast decision making, better control, more focused decision making, efficient

Cons : employees have no autonomy, demotivating, slow as only one group makes all decisions

Pros and cons of decentralisation

Pros : input from workforce, fast as there is delegation, improved morale, team work (collaboration), more accountability so improved quality

Cons : inefficient, mistakes, loss of control, communication issues (can be expensive to fix)

Wether organisation should be centralised on decentralised depends on

Size of business, importance of decision, corporate culture, use of tech, management attitudes

Pros and cons of delayering

Pros : lower costs, improved communication, more delegation

Cons : job insecurity within employees, increased work loads, slow decisions

Pros and cons of matrix

Pros : improved communication, maximise use of skills of employees, cost effective (shared resources)

Cons : added workload, difficult to coordinate, time consuming

Organisational structure depends on...

Size of business, employee skill level, management attitude (willingness to delegate), culture of organisation

Pros and cons of flat organisational structure

Pros : Delegation, faster communication, less managers to hire, better relationship between manager and employee

Cons :hard to control large groups, less promotion, less specialisation

Pros and cons of tall structure

Pros - managers have few staff to manage so can do so more efficiently, more specialisation, more promotion

Cons - slower communication, less delegation, need to hire more managers, employees are further from management

pros and cons of delegation

pros : freeing manager time for strategy, developing employee skills (training, motivation, growth), improving efficiency, and fostering trust

cons:potential for lower quality work, increased training costs, lack of accountability if done poorly, hindering business growth