People in Business Chapter 19: Improving Organisational Structures

Organisational Structure The relationship between different people and functions in an organisation – both vertically, from shop-floor workers through supervisors and managers to directors, and horizontally between different functions and people at the same level. Organisational Charts show: –The design of the organisation, including the chain of command –How different functions and divisions fit together –Who is answerable to whom –The SPAN OF CONTROL in each division –The official channels of communication.

Features of tall structures with narrow spans of controlFeatures of flat structures with wide spans of control May be more promotional opportunities because the career ladder has more runs on it. However, more layers mean more staff, which in turn means higher company overheads Less delegation might mean less stress, but could lead to low morale and a lac of commitment Narrow spans allow tight control to be kept, which might be beneficial if factors such as quality, safety or security are crucial and where any mistake will have serious consequences Important detail or info may be lost in reporting up through the levels of the hierarchy and the chain of command A longer chain of command means that it takes longer for decisions to be made and implemented. Individual managers may have less time for each subordinate and must therefore delegate effectively More delegation means that staff are given greater responsibility, which might mean more opportunity to use their ability. But staff may become overstrectched which may in turn cause stress. Fewer layers of hierarchy between the bottom and the top of the organisation may mean that vertical communication improves

Delegation The process of passing authority down the hierarch from a manager to a subordinate. Advantages of DelegationLimits to Delegation Management Time Motivation Local Knowledge Flexibility Staff Development Small Firms Customer Expectations Attitudes and Approach of the Management Quality of Staff Crisis Situations Confidentiality

The process of communication Effective communication will happen only if the information sent is received and clearly understood. –A sender or communicator – the person (or group) who is sending the message –The message – the topic of the communication –A transmission mechanism (also known as the process, medium or channel) by which a message is conveyed (ie: by phone, memo or in a face-to-face meeting) –A receiver – the person (or group) at whom the message is aimed –Feedback – the response from the receiver, whether written, verbal or even a facial expression, indicating that the message has been understood.

The structure of an organisation is influenced by many factors: The size of the organisation The nature of the organisation The culture and attitudes of senior management The skill and experience of its workforce