YEAR 12 BUSINESS MANAGEMENT ORGANISATIONAL STRUCTURE, CORPORATE CULTURE & POLICY AND PROCEDURES

Management structure Senior Middle Management FLM

Organisational Structure Structure refers to the way in which the parts of a system or object are organised and coordinated. Features of a structure include; Division of labour Departments or divisions Chains of command, control and authority Communication channels – two way, one way, lateral Decision making – centralised or decentralised

Organisational chart A chart depicts the structure as a diagram. EG.

Types of organisational structures a) Hierarchical structure 1.Employees arranged in layers 2.Rigid lines of communication 3.Identifiable positions 4.Clear span of control 5.Centralised decision making

b) Bureaucracy Complex hierarchical structure. Features; Division of labour Downward communication Centralised decision making Defined hierarchy Narrow span of control Defined promotion & selection procedures

Clear accountability Clear lines of control

c) Flatter organisational structures Move towards this type of structure. Features include; Fewer levels of management Employees involved in decision making Fewer status distinctions Increased training and multi skilling

d) Functional structures Employees are grouped together in departments. Some organisations use a combination of structures.

e) Geographic structures Based on location eg. Bank with branches in each state.

f) Product-based structures Departments are grouped together according to the product they make or sell. g) Customer-based structures Departments are based on the types of customers they deal with. Eg. car manufacturer may have – retail sales & fleet sales (business).

h) Network/ organic structure Flexible structure. Have a central core & then outsource other functions. Eg virtual corporation – Dick Smith Foods. Core business Supplier 1 Supplier 4 Supplier 3 Supplier 2

i) Matrix structure This is based on a team or project structure. Specialists from different functional areas join the team or project. Often used across departments, it not usually a permanent structure.

Consequences of less hierarchical or flatter structures; Shorter communication paths, decentralised decision making, fewer layers, more consultative or participative style. Senior Dept FLMTeam one Team two Manager

Corporate culture Corporate culture is the shared values, attitudes and beliefs shared by people within the organisation. Can recognise culture by looking at; Written policies & objectives Physical environment Structure & management style Processes Rituals & traditions Language used

Differences in corporate culture Differences can include; Degree of innovation & risk taking Attention to detail People or task orientation Team orientation Age of the organisation Diversity

How does a new employee learn about culture? Stories & narratives Rituals Symbols Behaviour of management Recognition of employees Communication & language used Policies

Policy A policy is a written statement detailing processes, procedures, rules & regulations. Procedures are a series of interrelated steps to implement the policy. Examples include; uniform, OH&S, anti bullying, equal opportunity, attendance, code of behaviour or code of conduct.

Policy development process There are seven steps in the process. 1.Issue identification – this is wrong we need to fix it. 2.Research & analysis – what exactly needs to be changed & what are the possibilities? 3.Stakeholder input – what do they think? 4.Policy development – the new policy is prepared.

5. Draft policy is posted – what exactly are the changes/ the new policy? 6. Policy approval – this is what the policy is going to be. 7. Evaluation – did the new policy assist in achieving organisational goals?