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Organisational Structures
Organisational Charts
Traditional StructureWho fits is where?
•Managing Director/Owner•Secretary•Receptionist•Senior Manager•Supervisors•Production manager
Who has more authority?
Organisational Charts
MD
Middle Management
Workers
Traditional Structure
SeniorManagement
Managing Director
Organisational Structure
Sales Director
Marketing Director
Production Director
Sales Managers
Advertising Manager
Press Relations Manager
Production Manager
Quality Manager
Salesman North
Region
Salesman South
Region
Advertising Assistant
Press Assistant
Supervisors
Operators
Quality checkers
Managing Director
Organisational Structure…
Sales Manager
Marketing Manager
Production Manager
Administrator Advertising Assistant
Press Relations Assistant
Production workers
Employees are organised horizontally
Em
plo
yees are org
anised
vertically
Managing Director
Organisational Structure…
Sales Manager
Marketing Manager
Production Manager
Administrator Advertising Assistant
Press Relations Assistant
Organisational Chart = a diagram which shows the internal structure of an organisation
Production workers
Etc
Functional Department = a group of specialised workers organised to fulfil a task; e.g. Marketing, Accounting
4 Functional Departments
Managing Director UK
Long Chain of Command
Sales Director
Advertising Director
Sales Manager
North
Advertising Manager
Press Relations Manager
Salesman South Region
Advertising Assistant
Press Assistant
Sales Manager
South
Salesman South Region
Secretary
Salesman South Region
Salesman South Region
Secretary
Press Director
Tal
l str
uct
ure
Lo
ng
ch
ain
of
com
man
dJunior Trainee
Managers have only a few people to manage (narrow span of control)
Employees can specialise in what they know best
Good promotion prospects because there are more jobs
Bigger range of benefits, such as a car park, canteen, social club
Advantages of Tall Organisational structure
Disadvantages of Tall Organisational structure
Employees might feel very remote from the person running the company, especially in a company like Tesco where the Chief Executive is in one country and some employees are in another country
The structure can be inflexible because employees will have to work to rigid policies and procedures
Decisions can take a long time to filter down from the Chief Executive
Departments might work in isolation
Managing Director UK
Short Chain of Command
Sales Director
Advertising Director
Advertising Manager
Salesman South Region
Promotion Co-ordinator
Salesman South Region
Salesman South Region
Salesman South Region
Press Co-ordinator
Sh
ort
str
uct
ure
Sh
ort
ch
ain
of
com
man
dChain of Command = The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
Advantages of Flat Organisational structure
Good communication because the business is small
New ideas can be quickly adopted by all staff
Staff feel they can communicate with the manager
Can operate informally because employees will know everyone else and they can easily help other staff
Decisions can be taken and put in place very quickly
Disadvantages of Flat Organisational structure
Employees might feel that there is little chance of promotion because there are only a few people in the organisation; this can be demotivating
Employees might feel that they have to do a range of jobs rather than concentrate on just one.
Managers may have many people to manage (wide span of control)
Managing Director UK
Span of Control
Sales Director
Advertising Director
Advertising Manager
Salesman South Region
Promotion Co-ordinator
Salesman South Region
Salesman South Region
Salesman South Region
Press Co-ordinator
Span of Control = The number of subordinates reporting to a manager. In a short Chain of Command usually more people report to one manager. In a long Chain of Command less people report to one manager
4 people 3 people
2 people
Giving a subordinate the authority to perform particular tasks. But the AUTHORITY stays with the manager.
Delegation
Delegation =
DELEGATION
Makes the work interesting
Increases staff job satisfaction
Give authority to others to take
decisions
Delegation
Some managers are reluctant to
delegate
Managers lose some control over staff they manage
Staff feel trusted
Allows managers
more time for other tasks
