H UMAN R ESOURCE S TRATEGIES C OMPETITIVE O RGANISATIONAL S TRUCTURE “We trained hard, but it seemed that every time we were beginning to form up into teams we would be reorganised. I was later to learn that we tend to meet any situation by reorganising and a wonderful method it can be for creating an illusion of progress, while producing confusion, inefficiency and demoralisation.” GAIUS PETRONIUS AD 56 BUSS3.18 Competitive Organisational Structure

C OMPETITIVE O RGANISATIONAL S TRUCTURE I N THIS TOPIC YOU WILL LEARN ABOUT : Factors determining choice of organisational structure Adapting organisational structures to improve performance BUSS3.18 Competitive Organisational Structure

O RGANISATIONAL S TRUCTURE Can you define each of these terms? Organisational structure Subordinate Manager Span of control Chain of command Can you explain the difference between a manager and a supervisor? BUSS3.18 Competitive Organisational Structure Recap AS Organisational Structure R

O RGANISATIONAL S TRUCTURES AT A2 Large organisations PLCs Multinational Multifunctional Complex Competitive Organisational structure is therefore very complex and dynamic To think about structure as a strategic tool you must not underestimate how complex they may be in large organisations Think about how complex the structure will be in Mars Over 65 countries 4 Global brands 10 functional areas Continued organic growth Growth through acquisitions

T YPES OF O RGANISATIONAL S TRUCTURE Hierarchical A formal structure with clear levels of authority and channels of communication Functional Divisional Matrix A dynamic structure with project teams comprising of people from different functions and different levels Informal Where there is no clear hierarchical structure, creativity and an enterprising culture is promoted May just be within one function Large organisations will probably have not just one structure but a combination of all three BUSS3.18 Competitive Organisational Structure What is the relationship between organisational structure and HR strategies?

F ACTORS DETERMINING CHOICE OF ORGANISATIONAL STRUCTURE Objectives Nature of firm Type of workers Size Market conditions Culture Leadership style 20 th Century developments Is Flatter Better? Delayering the Management Hierarchy Read this article to identify factors influencing organisational structure

A DAPTING O RGANISATIONAL S TRUCTURE As organisations grow in size the structure will evolve but may not always be the most competitive or effective structure Large organisations will look to restructure in order to improve their competitiveness Restructuring may look to: Reduce costs Spread work load Reduce repetition Improve communication Respond to changes in technology Meet new demands BUSS3.18 Competitive Organisational Structure You will need access to the internet to watch this clip Restructuring strategy at EMI

A DAPTING ORGANISATIONAL STRUCTURE Centralisation Few decision makers Decisions made by those at the top of the hierarchy Speeds up decision making Maintains tight control Bureaucratic Decentralisation Delegates decision making Decisions made at many levels within the hierarchy Frees up management time Provides motivation Reduces bureaucracy BUSS3.18 Competitive Organisational Structure Try to explain how the choice of either centralised or decentralised decision making will effect economies and diseconomies of scale.

A DAPTING ORGANISATIONAL STRUCTURE Delayering Taking out levels (layers) from the hierarchy Flatter structures Empowers employees as less direct supervision Expertise may be lost Widens span of control Short term cost v. Long term gain Flexible workforces Reduce number of full time employees Better able to match staff requirements to fluctuating demand Use temporary and part time workers Temporary workers now have same rights as permanent workers BUSS3.18 Competitive Organisational Structure Will there be casualties along the way? You will need access to the internet to watch this clip

A CHIEVING A FLEXIBLE WORKFORCE Core workers Essential for day to day operations Full time and permanent contracts Motivated through financial and non financial methods Managers and specialist technical staff Good knowledge and understanding of the business Peripheral workers Bought in to meet the needs of the business Part time, temporary or fixed term contracts Increases flexibility May be semi-skilled or unskilled workers BUSS3.18 Competitive Organisational Structure

A CHIEVING A FLEXIBLE WORKFORCE Outsourcing Using the services of another organisation Recruitment consultancy Cleaning firm May be buying in of specialist support Cost effective solution to many business functions Home working Employee works from home rather than on the business’ premises Often relies on technology for communication Gives flexibility to employee as well as employer BUSS3.18 Competitive Organisational Structure You will need access to the internet to watch this clip

A CTIVITY : RESEARCH C HARLES H ANDY Charles Handy is a well published author of business and management books. In particular he is well known for writing about business organisations. Books include “The Age of Unreason”, “ The Empty Raincoat” and “The New Philanthropist” To help understand the significance of a flexible workforce research 2 of Handy’s analogies The Shamrock The Inverted Doughnut BUSS3.18 Competitive Organisational Structure Draw and annotate 2 diagrams to help you explain what is meant by “The Shamrock” and “The Inverted Doughnut”