Chapter 19 - Improving organisational structures.ppt - gmbusiness

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Chapter 19 - Improving organisational structures.ppt - gmbusiness Powered By Docstoc
					People in Business

 Chapter 19: Improving
Organisational Structures
      Organisational Structure
• The relationship between different people and
  functions in an organisation – both vertically,
  from shop-floor workers through supervisors and
  managers to directors, and horizontally between
  different functions and people at the same level.
• Organisational Charts show:
  – The design of the organisation, including the chain of
  – How different functions and divisions fit together
  – Who is answerable to whom
  – The SPAN OF CONTROL in each division
  – The official channels of communication.
Features of tall structures with narrow spans of control        Features of flat structures with
                                                                wide spans of control
•May be more promotional opportunities because the              •Individual managers may have
career ladder has more runs on it. However, more layers         less time for each subordinate and
mean more staff, which in turn means higher company             must therefore delegate effectively
overheads                                                       • More delegation means that staff
• Less delegation might mean less stress, but could lead to     are given greater responsibility,
low morale and a lac of commitment                              which might mean more
• Narrow spans allow tight control to be kept, which might      opportunity to use their ability. But
be beneficial if factors such as quality, safety or security    staff may become overstrectched
are crucial and where any mistake will have serious             which may in turn cause stress.
consequences                                                    •Fewer layers of hierarchy
•Important detail or info may be lost in reporting up through   between the bottom and the top of
the levels of the hierarchy and the chain of command            the organisation may mean that
•A longer chain of command means that it takes longer for       vertical communication improves
decisions to be made and implemented.
 • The process of passing authority down the
   hierarch from a manager to a subordinate.

   Advantages of Delegation         Limits to Delegation
•Management Time              •Small Firms
•Motivation                   • Customer Expectations
•Local Knowledge              •Attitudes and Approach of
•Flexibility                  the Management
•Staff Development            •Quality of Staff
                              •Crisis Situations
 The process of communication
• Effective communication will happen only if the
  information sent is received and clearly
  – A sender or communicator – the person (or group)
    who is sending the message
  – The message – the topic of the communication
  – A transmission mechanism (also known as the
    process, medium or channel) by which a message is
    conveyed (ie: by phone, memo or in a face-to-face
  – A receiver – the person (or group) at whom the
    message is aimed
  – Feedback – the response from the receiver, whether
    written, verbal or even a facial expression, indicating
    that the message has been understood.
The structure of an organisation is
   influenced by many factors:

• The size of the organisation
• The nature of the organisation
• The culture and attitudes of senior
• The skill and experience of its workforce

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