1. Organisational Structure HL
Human Resources
Organisational Structure HL

2. Learning Objectives Analyse delegation and accountability
Understand the meaning of bureaucracy
Understand the difference between centralised and decentralised structures and the factors that influence the degree of it

3. Delegation and Accountability
Passing authority down the organisational hierarchy
The obligation of an individual to account for his or her activities and to disclose results in a transparent way
Flat organisational businesses will use delegation….
Important principles that can affect organisational structure and levels of motivation

4. More Organisational Structure theory
Delegation
Delegation involves the passing of authority down the hierarchy
Authority occurs when an employee is given the right to do something by their superiors
This will:
- Free up time for management
- Motivate workers by providing them with greater responsibilities
Mrs G / Mr A work 4

5. Increased delegation to subordinates
Delayering
To reduce the size of a business hierarchy, especially in terms of a reduction in management and costs
This creates a flatter (less layered) organisational structure
But what does this involve?
It leads to:
Wider spans of control
Increased delegation to subordinates

6. This is called delayering
Hierarchical / Bureaucratic structure
This is called delayering

7. Delayering

8. Bureaucracy
An organisational system with standardised procedures and rules

9. Centralisation & Decentralisation

10. Centralised Organisations
What are they?
Organisations where important decisions are taken at the centre and then passed out to the various departments / locations
Advantages
Tight control of decisions
Decisions made by senior management
Helps decisions to be consistent across the business
Avoids repetition of functions (e.g. only one purchasing department)
Disadvantages
Lack of motivation for managers
Central management may be “out of touch”
May be slow to make decisions that need to taken quickly

11. De-Centralised Organisations
What are they?
Organisations where important decisions are delegated to managers in other departments / locations
Advantages
Increased motivation of managers
Encourages local initiatives
Decisions based on more up-to-date information
Decisions made quicker
Disadvantages
Managers may lack experience
Local decisions may be inconsistent with the overall business aims and objectives
Duplication of functions and costs

12. The Matrix Structure
A structure that creates project teams that cut across traditional functions / departments
Used to eliminate the many problems that arise with a hierarchical structure

13. Project Teams – Gathers together a team of specialists which form a team

14. Matrix Structure

15. The flexible future
The external environment is changing at a rapid pace, therefore businesses adapt and this is often done through retrenchment or downsizing

16. Henry Mintzberg
According to renowned management theorist Henry Mintzberg, an organization's structure emerges from the interplay of the organization's strategy, the environmental forces it experiences, and the organizational structure itself
When these fit together well, they combine to create organizations that can perform well
When they don't fit, then the organization is likely to experience severe problems

17. Henry Mintzberg
Different structures arise from the different characteristics of these organizations, and from the different forces that shape them (which Mintzberg calls the "basic pulls" on an organization). By understanding the organizational types that Mintzberg defines, you can think about whether your company's structure is well suited to its conditions. If it isn't, you can start to think about what you need to do to change things

18. Mintzberg's Organizational Types
The main successful organizational structures that he identifies are as follows:
The entrepreneurial organization
Flat structure, relatively informal, lack of standardised procedures, flexibility
The machine organization (bureaucracy)
Standardisation, inflexible, tall structure
The professional organization
Specialisation by experts, decentralised
The divisional (diversified) organization
Different product lines,
The innovative organization ("adhocracy")

19. Tom Peters – Seven S Model

20. Based on the theory that an organisation is made up of seven elements
Practical and identifiable
Less tangible, and easy to identify, determined by the people at work in the organisation

21. This model helps to increase managers’ awareness of the less tangible but critically important factors required for an organisation to be successful

22. Informal Organisations
The culture of people and groups within a business
An informal organisation is a network of personal and social relations that develop between people within an organisation
Individuals’ effectiveness can greatly be affected by the people with whom they work
Good managers will try to use informal groups to the benefit of the business

23. Outsourcing HR Functions
Functions being outsourced may include:
Payroll management
Fringe benefits administration
Legal issues relating to employees
Recruitment
HR record keeping

24. HR Outsourcing Reasons and benefits Limitations Reduces costs
Allows HR to be more focused and strategic
More expertise and services
Less burden on leaner staff
Streamlines HR functions
Limits risks borne by HR
Offers flexibility for HR
Unexpected cost impact
Organisational resistance
Reduced service levels
Changes in the HRO vendor's business
Other vendor management issues
Organisational worries