1. Management Structure and Organisation

2. Content Management structure and design Organisational design
Tall
Flat
Matrix
Entrepreneurial
Management by objectives
Centralisation and decentralisation
Delegation and consultation

3. Why Have a Structure?
A clear structure makes it easier to see which part of the business does what
An organisational structure is the way in which a business is arranged to carry out its activities

4. Management Structure and Design
The choice of structure impacts the organisations culture – their ethos and beliefs
If businesses are looking to change their direction they often look at restructuring

5. Organisational structure
Includes:
The routes through which communication pass through the business
Who has authority and power and responsibility within the business
The roles and titles of people within the business
The people whom individual employees are accountable for and those for whom they are responsible

6. Key terms
Hierarchy – the number of layers of levels within an organisation
Subordinate – a worker
Span of control – the number of subordinates who directly report into a manager
Chain of command – the line of communication and authority from the top to the bottom of the hierarchy

7. Flat or Tall Structure?
A Flat structure has few layers in the hierarchy, a wide bottom and a gentle slope to the top
Lots of small companies have a flat structure

8. Flat Structures – Advantages and Disadvantages
Traditionally an American structure
Span of control is wider
Less hierarchy – easier to make decisions
More employee empowerment
Can be cheaper as don’t have to pay expensive management salaries

9. Tall structures A tall structure has many layers in the hierarchy
As there are many layers the chain of command is longer
Managers have smaller spans of control and there is less delegation

10. Tall structures – Advantages and Disadvantages
Traditional structure of European companies
Clear hierarchy
Smaller chains of command
More control
Clear communication

11. Tall to flat
In the 1990s many people felt that traditional tall structures were not cost effective so delayering occurred
Delayering is the process of removing layers ion the hierarchy
Businesses saw delayering as a way of cutting costs and increasing efficiency

12. Matrix structure
Matrix – this is where the business is organised by task
Combines a vertical chain of command with project / product teams
The focus is on the task
Is a more flexible structure and allows the business to be more responsive to customer needs
However it can cause conflict and employees may have divided responsibilities
Extra costs may be generated by duplication of support staff

13. Entrepreneurial Structure
Often found where businesses operate in competitive markets and especially where rapid decisions are needed
Have a few core workers at the centre of the organisation and peripheral workers surrounding them
Depends on how good the core workers are at managing and making decisions
Can be difficult for larger organisations

14. Additional ways to structure 2
By function
By product / activity
By area
By customer
By process

15. Management By Objectives
Druckers theory of management:
Identified that managers should:
Identify and agree targets for achievement with employees
Agree on the level of support needed to achieve the targets
Evaluate how well the objectives were met

16. Management By Objectives
Need to agree objectives for each worker
This can increase communication
Can increase motivation as subordinates know what they need to achieve
Can help to identify training needs
If workers meet goals can allow them to achieve self actualisation needs (Maslow)

17. Management By Objectives
It can also cause problems
Some workers may be threatened by the target setting experience – managers can set targets which can be perceived as unachievable
Needs commitment from everyone in the organisation
Objectives may become outdated due to changes in the business environment

18. Centralisation and Decentralisation
Centralised organisations are where most decisions are taken by senior managers at the top of the hierarchy.
This leads to rapid decisions but low levels of consultation
Decentralised businesses gives more authority to workers lower down the hierarchy by delegating decisions

19. Delegation
Delegation is where managers give a portion of their work to their subordinates
Delegation can allow subordinates to gain more autonomy and become empowered leading to an increase in performance
This is a technique used by democratic managers

20. Consultation
This is where managers ask for and take into account subordinates views
Consultation allows a manager to keep more control of the situation
This is a technique used by paternalistic managers

21. Summary Organisational design describes how a business is organised
Tall or traditional structures have many levels in the hierarchy
Flat structures have few levels in the hierarchy
Matrix structures are organised by product / project
Entrepreneurial structures have core workers at the centre and peripheral workers at the edges
Management by objectives – is the idea that you set targets for all workers to increase performance
Centralised organisations are where senior managers make key decisions
Decentralised organisations are where workers have more authority to make decisions
Delegation is where managers give employees some of their work increasing their responsibility
Consultation where managers ask employees their opinions