The Structure of Organisations

Organisation

Internal, formal framework How authority is transmitted Often evolves

Organisation Chart

Organisation Chart

Overall responisibility for decision making

Formal relationships Accountability and authority Span of control – who report to whom Formal channels of communication

Heirarchy

Layers with fewer and fewer people Often called a pyramid Vertical in nature – Tall or Flat

Easy to create Decision clearly from

top Identifiable chaing of

command ”role” culture –

importance of roll determines position in heirarchy

Archaic Rarely the most

efficitient Horizontal links don’t

exist Tunnel vision ”Safe” organisations

can lead to inflexibility

Pros Cons

Limited Company Organisation Most companies have no majority

shareholder Board of Directors

Elected/appointed shareholdersBroad policies and objectivesAccountability to stakeholdersAppoint a CEO

Company Officers

CEO also called Managing DirectorChief Executive Officer

CFO – Financial CTO – Technical CMO – Marketing CIO – Information CCO - Creative

Some Company’s Boards

EricssonVattenfallHewlett Packard

Matrix Structure

Cross cooperation between units Task/project oriented Gathers a team of specialists to

complete a project Emphasis on contribution to team

Communication across traditional boundries

Less tunnel vision Crossover of ideas Easy to create new

groups/constellations

Less direct control from top

Unclear leadership

Pros Cons

Next time

Key principles

Reponsibilities Authority Accountability