1. Organisational Structure

2. What information does an organisation chart show?
An organisation chart shows the positions
of employees within the organisation – their names, room number, telephone extension number etc
It also shows:
LEVELS OF RESPONSIBILITY
LINES OF COMMUNICATION
  LINES OF RESPONSIBILITY (LINE RELATIONSHIPS)
LATERAL RELATIONSHIPS

3. LEVELS OF RESPONSIBILITY
Those members of staff who carry out similar activities in the organisation
SENIOR MANAGEMENT
MIDDLE MANAGEMENT
JUNIOR MANAGEMENT
SUPERVISORS, SENIOR ASSISTANTS
LOWER LEVEL EMPLOYEES

4. LINES OF COMMUNICATION
Organisations must communicate information efficiently and effectively in order for it to survive and grow
If there are many levels within the organisation there is more chance of communication breaking down as information is handled by more people
The chain of command shown is:
Board of Directors
Managing Director
Sales Director
Sales Manager
Board of Directors
Managing Director
Sales Director
Sales Manager

5. LINES OF RESPONSIBILITY
These show people in the organisation who are in charge of the work of other members of staff.
Line Relationships
These exist between line managers and the staff immediately below them. Members of staff are accountable to their line manager for any actions decisions they take.
Line relationships are shown by VERTICAL lines on an organisation chart.
The Sales Director is in charge of the work carried out by both the Sales Manager and Marketing Manager
Sales Director
Sales Manager
Marketing Manager
A line relationship exists between the Sales Director and the Marketing Manager in the above example

6. LATERAL RELATIONSHIPS
These exist between employees who are on the same level and who report to the same line manager.
The employees CANNOT give instructions to each other.
Lateral relationships are shown by HORIZONTAL lines on an organisation chart.
Personnel Manager
Finance Manager
Managing Director
Sales Manager
A lateral relationship exists between the Sales Manager, the Finance Manager and the Personnel Manager. They are all on the same level of responsibility, they all report to the same manager and neither can give the others orders.

7. TALL ORGANISATIONS FLAT ORGANISATIONS
There are 2 main types of organisational structure
TALL
FLAT
TALL ORGANISATIONS
Many levels of management
Managers have narrow span of control
FLAT ORGANISATIONS
Few levels of management
Managers have wider span of control

8. TALL Disadvantages Examples of Tall Organisations Police Force Army
School
TALL
Advantages
Disadvantages
Easier for managers to supervise staff
More opportunity for promotion
Employees more likely to know their immediate boss
It may take longer to communicate decisions and information throughout the organisation
The management structure may be costly due to many highly paid jobs
Employees may not the opportunity to suggest ideas or show initiative

9. FLAT Disadvantages Examples of Flat Organisations
Small Shops eg Newsagent, Chip Shop
Small Offices
Farms
FLAT
Advantages
Disadvantages
Employees have more responsibility – should result in staff feeling valued/motivated
Fewer levels of management – more efficient communication
Employees more likely to be involved in decision making process
Employees may become more stressed due to increased workload
Increase in amount of training needed – due to employees wider responsibilities
Fewer opportunities for promotion to management posts

10. Changing the organisational structure
Organisations are unlikely to remain the same year after year. The business may be growing in size or it may have to reduce its operations.
METHODS OF RESTRUCTURING
Growth – the organisation is becoming larger. More staff are employed by the organisation. New departments may need to be created.
Downsizing – the organisation has to make cut backs without reducing output – some staff may be made redundant, others will find themselves with increased responsibilities.
 Delayering – the organisation removes certain levels of management. This results in managers having wider spans of control and the organisation having a flatter structure

11. What are the benefits and problems of restructuring?
Possible Benefits
Possible problems
Reduction in costs – staffing costs, general running costs (Delayering & Downsizing)
To become more efficient
To improve communication within the organisation (Delayering)
Low staff morale through redundancies, increased workload etc
Staff may not like the new structure and want things to stay the same
Costs of restructuring – associated with moving to new departments
Customers may be unfamiliar with the new structure