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Trends in Organizational Structure. By: Denny Prasetya. Learning Goals. I will be able to explain the different trends in the organizational structure. I will be able to explain the role that the manager has to take when dealing with these trends. - PowerPoint PPT Presentation
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Trends in Organizational Structure
By: Denny Prasetya
Learning Goals I will be able to explain the different trends in the organizational structure.
I will be able to explain the role that the manager has to take when dealing with these trends.
I will be able to explain the differences between wide and narrow span of control.
I will be able to explain the differences between delegation and decentralization.
Trends
Wider Span of Control
More Delegation
Decentralization
Wider Span of ControlA span of control the number of people who report to one
manager in a hierarchy
Narrow Span of Control
Tall Structure
Advantages of Narrow Span of Control Have more levels of reporting in the organization, resulting in a more
hierarchical organization
Supervisors can spend time with employees and supervise them more closely
Creates more development, growth, and advancement opportunities
Disadvantages of Narrow Span of Control More Costly
More supervisory involvement in work could lead to less empowerment and more micromanagement
Tends to result in communication difficulties and excessive distance between the top and bottom levels in the organization.
Wide Span of Control
Flat Structure
Advantages of Wide Span of Control Less layers of management to pass a message through
It costs less money
Encourages empowerment of employees by giving more responsibility, delegation and decision-making power to them.
Disadvantage of Wide Span of Control Less supervision
Role of Manager on a Span of Control Managers receive report from their subordinate
More DelegationDelegation Giving authority to employees to do a given task
Benefits for the Manager Managers have more time to do important tasks, letting subordinate do
smaller tasks
Managers are less likely to make mistakes if tasks are done by specialist employees
The work will still be done even if the manager absence
Improve manager’s reputation as being a trusting manager
Benefits for the Employee Employees feel more important and trusted
Helps train workers, giving them better career opportunities
Decreases delays
Increases and improves motivation and job satisfaction
Role of Manager on Delegation Managers ask their employees to do a task
Why some managers don’t want to delegate? Managers are afraid that their employees will fail
Managers want total control
Managers are scared that the subordinate will do tasks better than them, making them feel insecure
Decentralization Delegating important decisions to lower division
Centralization Decision-making power occurs at the head office of a company.
Forms of Decentralization Functional Decentralization
Federal Decentralization
Regional Decentralization
Decentralization by project
Role of Manager on Decentralization Managers in each departments make decisions.
Is complete decentralization a good idea?
Differences between Delegation and Decentralization1. Meaning
2. How it takes place
3. Narrow and Wide
4. Control
5. Essential and Optional
Quiz Time!Why some managers don’t want to delegate ? What is the difference between decentralization and centralization ?
What is delegation ?
Class Activity Group 1: Draw a narrow span of control structure and put your names on
each division.
Group 2: Draw a wide span of control structure and put your names on each division.
MAKE SURE YOU PUT ALL YOUR FRIENDS’ NAME ON THE STRUCTURE!
Work Cited "Business Studies Notes For IGCSE." : Chapter 10: Organisational Structure. N.p., 16 Aug. 2012. Web. 14 Dec.
2013.
Lewis, Sally Foley. "Benefits of Delegation | Sally Foley-Lewis." Sally FoleyLewis RSS. N.p., n.d. Web. 14 Dec. 2013.
Joseph, Chris. "The Advantages of a Decentralized Organizational Structure." Small Business. N.p., 2013. Web. 14 Dec. 2013.
Akrani, Gaurav. "Difference Between Delegation of Authority and Decentralisation." Difference Between Delegation of Authority and Decentralisation. N.p., 27 May 2011. Web. 14 Dec. 2013.
Riley, Jim. "Organisation - Span of Control." Organisation - Span of Control. N.p., 23 Sept. 2012. Web. 14 Dec. 2013.
"Defining Span of Control." Where Great Workplaces Start. Wordpress.com, 17 Feb. 2010. Web. 14 Dec. 2013.
Thank you