Organisational Structures

Organisational Charts Traditional Structure Who fits is where? Managing Director/Owner Secretary Receptionist Senior Manager Supervisors Production manager Who has more authority?

Organisational Charts MD Middle Management Workers Traditional Structure Senior Management

Managing Director Organisational Structure Sales Director Marketing Director Production Director Sales Managers Advertising Manager Press Relations Manager Production Manager Quality Manager Salesman North Region Salesman South Region Advertising Assistant Press Assistant Supervisors Operators Quality checkers

Managing Director Organisational Structure… Sales Manager Marketing Manager Production Manager Administrator Advertising Assistant Press Relations Assistant Production workers Employees are organised horizontally Employees are organised vertically

Managing Director Organisational Structure… Sales Manager Marketing Manager Production Manager Administrator Advertising Assistant Press Relations Assistant Organisational Chart = a diagram which shows the internal structure of an organisation Production workers Etc Functional Department = a group of specialised workers organised to fulfil a task; e.g. Marketing, Accounting 4 Functional Departments

Managing Director UK Long Chain of Command Sales Director Advertising Director Sales Manager North Advertising Manager Press Relations Manager Salesman South Region Advertising Assistant Press Assistant Sales Manager South Salesman South Region Secretary Salesman South Region Secretary Press Director Tall structure Long chain of command JuniorTrainee

Managers have only a few people to manage (narrow span of control) Employees can specialise in what they know best Good promotion prospects because there are more jobs Bigger range of benefits, such as a car park, canteen, social club Advantages of Tall Organisational structure

Disadvantages of Tall Organisational structure Employees might feel very remote from the person running the company, especially in a company like Tesco where the Chief Executive is in one country and some employees are in another country The structure can be inflexible because employees will have to work to rigid policies and procedures Decisions can take a long time to filter down from the Chief Executive Departments might work in isolation

Managing Director UK Short Chain of Command Sales Director Advertising Director Advertising Manager Salesman South Region Promotion Co-ordinator Salesman South Region Press Co-ordinator Short structure Short chain of command Chain of Command = The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.

Advantages of Flat Organisational structure Good communication because the business is small New ideas can be quickly adopted by all staff Staff feel they can communicate with the manager Can operate informally because employees will know everyone else and they can easily help other staff Decisions can be taken and put in place very quickly

Disadvantages of Flat Organisational structure Employees might feel that there is little chance of promotion because there are only a few people in the organisation; this can be demotivating Employees might feel that they have to do a range of jobs rather than concentrate on just one. Managers may have many people to manage (wide span of control)

Managing Director UK Span of Control Sales Director Advertising Director Advertising Manager Salesman South Region Promotion Co-ordinator Salesman South Region Press Co-ordinator Span of Control = The number of subordinates reporting to a manager. In a short Chain of Command usually more people report to one manager. In a long Chain of Command less people report to one manager 4 people 3 people 2 people

Giving a subordinate the authority to perform particular tasks. But the AUTHORITY stays with the manager. Delegation Delegation =

DELEGATION Makes the work interesting Increases staff job satisfaction Give authority to others to take decisions Delegation Some managers are reluctant to delegate Managers lose some control over staff they manage Staff feel trusted Allows managers more time for other tasks