1. Introduction to Business Organisations
Organisational Structure

2. What does organisational structure show?
Names of the main departments
Employee job titles
Management structure
Relationship of staff

3. KEY TERMS Span of Control
The number of employees each person (manager) is directly responsible for
Chain of Command
The passing of information or instructions from one level to another

4. Relationships LATERAL RELATIONSHIP
Link between staff on the same level
Staff who report to the same Line Manager
LINE RELATIONSHIP
Link between Line Manager and staff immediately below them

5. Line Relationship
Lateral Relationship

6. Benefits of an organisation chart to:
CUSTOMER/VISITORS
show size of the organisation
what activities are carried out
who to contact within the organisation
EMPLOYEES
show size and structure of the organisation
reporting structure
lines of communication/span of control
relationships between staff
promotion opportunities

7. Reporting Structure
ACCOUNTABILITY – an employee must be able to explain their action to their manager
AUTHORITY – the power that an employee has to instruct others and make decisions
RESPONSIBILITY – to take charge of a task, situation or person

8. TYPE OF ORGANISATION STRUCTURE
TALL
FLAT  

 
 
3 levels
5 levels

9. STRUCTURE - FEATURES TALL Many levels of management posts
Narrow span of control
Number of specialised jobs
FLAT
Few levels of management posts
Wide span of control

10. STRUCTURE - ADVANTAGES
TALL
Easier to supervise staff
More promotion opportunities
Better worker/manager relationship
Staff will have a clear idea of the scope of their duties
FLAT
Staff are given more responsibility – more motivating
Better communication
More likely to be involved in decision-making
Team working may be developed

11. STRUCTURE -DISADVANTAGES
FLAT
Workloads likely to increase
Less chance of promotion
Wider span of control
Staff feel isolated from management
TALL
Employees may not feel involved in decision-making
complicated communication channels
Many levels of high paid jobs
Lack of opportunity to show initiatives

12. How organisations change
RESTRUCTURING
How organisations change

13. GROWTH An increase in the amount or range of goods sold
Employment of additional staff
Additional departments added or expansion of existing departments
Increase in size and number of premises

14. DOWNSIZING Number of staff reduced without reducing output
Staff are made redundant not sacked
Departments can be reduced
in size or removed
Main reasons for downsizing is to save money

15. DELAYERING Removing a whole level of management
Should lead to management cost savings

16. OUTSOURCING Buying in services from another organisation
Reduces the cost of employing specialist staff
Allows staff to focus on core activities
Examples – security, office cleaning, reprographic (brochures)

17. RESTRUCTURING PROBLEMS Improved communication Staff morale can be low
BENEFITS
Improved communication
Organisation becomes more efficient
Can reduce staff costs
More delegation opportunities
PROBLEMS
Staff morale can be low
Resistance to change
Costs
Redundancies
Confusion after restructure

18. TEAM WORKING WHY Solve problems Improve quality of product/service
Wide range of skills and knowledge
Improve inter-department relationships

19. What makes a good team? Everyone is working towards the same goal
Everyone is committed to achieving the goal
Members help each other
Skills, experience and qualities of each person is used
Everyone is responsible for success/failure
There is team planning and regular discussion