...study this chapter Organisational Structure and Design . 9.1 Defining Organizational Structure • • Describe each of the five forms of departmentalization. • Differentiate, authority, responsibility, and unity of command. • Sandra Carlos Discuss the traditional and contemporary views of work specialization, chain of command, and span of control. Explain how centralization – decentralization and formalization are used in organizational design. Organising 9.2 Mechanistic and Organic Structures • Contrast mechanistic and organic organizations. • Explain the contingency factors that affect organizational design. o -the process of organising an organisation’s structure o -undergone lots of changes in the last few years 9.3 Common Organizational Designs • Contrast the three traditional organizational designs. • Describe the contemporary organizational designs. • Discuss the organizational design challenges facing managers today. Exhibit 9–1 Purposes of Organizing • Divides work to be done into specific jobs and departments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Clusters jobs into units. • Establishes relationships among individuals, groups, and departments. • Establishes formal lines of authority. • Allocates and deploys organizational resources. Organisational Structure -formal framework...
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...Organisation structure Structure relates to a skeletal framework of activities and processes in an organisation and specifies the roles of these in achieving goals and objectives of the organisation. According to (Mullins, 2009), a good structure is highly important due to the fact that decisions on structure are primary strategic decisions which can make or break an organisation. One important aspect of a good structure is the human element. Organisation structure should be designed so as to encourage employees and increase the morale and job satisfaction of organisation members which will result to overall organisation efficiency. (Mullins, 2006) describes nine basic considerations in the design of organisation structure. The fundamental step is to define organisational objectives to enable further analysis and comparisons of other forms of structure. Clarification of objectives A clear definition of objectives is vital to provide a framework for the design of structure of an organisation. Organisation objectives provide fundamental schemes for division of labour and creation of group units and sub units. Clearly stated aims and objectives will assist in decisions on the strategy and structural dimension to employ to achieve organisational objectives. Task and element functions Certain functions must be performed in order to produce a good or service, from the development of the good or service to finance of resources used in the complete processing. These functions...
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...GSOE9820 – Engineering Project Management Corey Martin Week 4 Projects and Organisational structures Course Roadmap Organisational structure “An organisational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims”. Reference: Pugh, D. S., ed. (1990).Organization Theory: Selected Readings. Harmondsworth: Penguin To improve project success! Sources: http://www.pmi.org/ CHAOS summary report 2013 Common types of project management structures • Functional • Dedicated Project Teams • Matrix Reference: Gray, C & Larson, E, Project Management, 5th Ed. McGraw-Hill Functional Organisation of projects • Different segments of the project are delegated to respective functional units. • Coordination is maintained through normal management channels. • Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success. Functional 1. 2. 3. 4. Advantages No/little org. change Flexibility in use of staff In-Depth Expertise Easy Post-Project Transition 1. 2. 3. 4. Disadvantages Lack of Focus for project Poor Integration across org. Typically slower to complete Lack of Ownership Dedicated Project Teams • Teams operate as separate units under the leadership of a full-time project manager. • In a projectised organization where projects...
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...Access Assignment Coversheet Subject: Business Studies Level 3 Access Assignment Coversheet Subject: Business Studies Level 3 Student Name | Centre | Unit Title Code 10233 Business and Organisation Structures 1 | Assignment Title2000 word assignment: You are employed as a business advisor in a firm of accountants. You have been asked to advise a client about business and organisation structures he needs to consider when setting up his business. Create an information booklet for your client providing an overview of business and organisational structures which he should consider.See overleaf for assignment brief | This unit is gradedGrade descriptors 1, 2, 4, 5 and 7 apply | No of credits: 6 | Date set | Date due | Date submitted | If a resubmission | Date due | Date submitted | Student Declaration: I understand that copying / taking ideas from other sources (e.g. reference books, journals, internet, and tutor handouts) without acknowledging them is plagiarism. I confirm that: * This assignment is all my own work * All contributions taken from other reading and research have been referenced accurately * Any direct quotations taken from other reading and research have been acknowledged and attributed accurately * I have attached a bibliography listing all sources used in producing this assignment. * I have added the word count below. NB unless specified otherwise, a 10% margin...
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...Organisational structure is the hierarchical arrangement of tasks that determine how jobs are positioned and controlled in an organisation. Designing structures will help to coordinate and motivate employees so that they work together to achieve specific organisational goals. There is no “one best way” to design an organisation’s structure since all organisations are unique. The best design is one that is suitable to an organisation’s situation and culture (George and Jones, 2014). The structure of an organisation can be illustrated using organisational charts whereas an organisation’s culture is hidden and only demonstrated through actions. The Simple Structure Simple structure, also known as entrepreneurial structure, is based on centralisation and central power. One individual has the authority to make all the decisions and it usually has only two or three vertical levels consisting of the work allocation. This structure is generally adopted by small businesses in which the owner has the power to control all the resources. The efficiency of the simple structure lies in its simplicity. It’s fast, flexible, and inexpensive to operate. One major drawback is that it becomes gradually ineffective as an organisation grows. As size increases, decision-making becomes slower as the owner tries to continue making all the decisions. Moreover, it is risky when everything depends on one person. A single oversight can jeopardise the performance of the organisation (Judge and Robbins...
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...Organisations are structured in a variety of ways, dependant on their objectives and culture. The structure of an organisation will determine the manner in which it operates and it’s performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. The wrong organisation structure will hinder the success of the business. Organisational structures should aim to maximize the efficiency and success of the Organisation. An effective organisational structure will facilitate working relationships between various sections of the organisation. It will retain order and command whilst promoting flexibility and creativity. Internal factors such as size, product and skills of the workforce influence the organizational structure. As a business expands the chain of command will lengthen and the spans of control will widen. The higher the level of skill each employee has the more the business will make use of the matrix structure to maximize these skills across the organization. Span of Control This term is used to describe the number of employees that each manager/supervisor is responsible for. The span of control is said to be wide if a superior is in charge of many employees and narrow if the superior is in charge of a few employees. Different Structures The most common organisation structures are: TALL STRUCTURE In its simplest form a tall organisation has many levels of management and supervision. There...
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.............................................................................. 2 Introduction ........................................................................................................................... 3 History of the Company ......................................................................................................... 4 Turning Point ...................................................................................................................... 4 Structure of the Company ...................................................................................................... 6 Functional Structure ........................................................................................................... 6 New Organisational Structure............................................................................................. 7 Structure and Performance: Correlation ................................................................................ 9 Oticon’s Organic Structure.................................................................................................. 9 Business Contingencies .................................................................................................... 10 Results ................................................................................................................................. 12 Problems in the Long-Term and Limiting Risks ..................................................................... 12...
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...Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization of any size or complexity, employees' responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart (see Figures 1a and 1b). The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets). There are multiple structural variations that organizations can take on, but there are a few basic principles that apply and a small number of common patterns. The following sections explain these patterns and provide the historical context from which some of them arose. The first section addresses organizational...
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...Organizational structure can be underlying cause of workplace issues By Joan Lloyd Organizational structure, much like a human skeletal structure, determines what shape an organization will take. We don't spend much time thinking about our skeletal structure until something breaks, and so it goes with organizations. How an organization is structured basically means how the reporting relationships and work teams are organized. It reveals a great deal about the culture, function and leadership of a company. When I work with an organization, structure is one of the components I examine, since it can be an underlying cause of problems. Perhaps it is a cause of problems where you work. Here are a few examples I've come across: Too many levels of hierarchy slow decision-making and are a barrier to empowerment. One of the best examples of the impact structure has on operations is the transformation that began in the 1970's and is still going on today: flattening. In the early part of this century, companies had many levels between the worker in the shop or office and the President. Decisions had to pass through many levels of approval before anything got done. Organizations grew larger and the bureaucracies ballooned until some of them were crushed under their own weight. Roughly fifteen years ago, Fortune Magazine ran a cover story about the huge reorganization efforts in GM and IBM, in which one executive was quoted as saying, "Trying to get a decision made was like swimming...
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...Organisational Structures- Tesco & Oxfam Organisational Structures- Tesco Tesco has a tall and traditional organisational structure. Because Tesco is a big company, its hierarchical structure offers many layers of management, giving everyone their individual place in the business. Hierarchical structures also ensure that management runs smoothly and that all of their employees know their roles and responsibilities so they can work more efficiently. Also, Tesco have several people in charge of each department so their span of control is quite thin, which divides up the workload and responsibility for those people in charge, so they can manage fewer members of staff. However, this type of structure also has its disadvantages. Even though it is clear to the employees where they have to report to, a tall structure can cause some communication problems. For example, if there are problems in one of the lower departments in Tesco, it can take a long time to be fixed because of the many levels of hierarchy that it has to travel through in order to be resolved, which could make some branches feel they are slightly isolated. Organisational Structures- Oxfam On the other hand, Oxfam has a flatter structure because they don’t need as many employees as Tesco does. Because they don’t have as many paid staff, their costs would be much lower. It would also mean that there would be a smaller number of managers, so they would have the responsibility of a large number of workers...
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...those aims and objectives. Within this essay I will be analyzing two contrasting business and their organizational structures, strategic plans, aims and objectives and the specific actions both organizations intend to take in order to ensure these targets or aims are met. The two organizations which will evaluated are Tesco plc which is a profitable national organization and Mid Kent college which is a national not for profit organization. In order for employees working within Tesco's to be aware of what authority to answer to or what position they are in, there is a organization structure placed. An organizational structure is a visual presentation that shows how each of the workers within a business are organized and relate to each other as well as, who has authority over each division of work and the role that each worker has. There are various types of organizational structures such as: * Hierarchal Structure: A hierarchal structure has a layer format where people in the higher layers have more authority than those in the lower layers. * Horizontal/flat structure: A flat structure has fewer layers and more people are allocated to each layer, decision making is mainly done in groups. * Matrix structure: collects groups of people with certain skills for specific projects. Tesco has a Hierarchal structure, below is Tesco's organizational structure: Below is a list of Tesco's functional areas and jobs within each division: * Head Office * Customer Service ...
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...the world according to retail industry analysts in London. Organizational behavior is about the impact of individuals, groups, culture and structure on the business. It relates to expected behaviors of individuals within the organization as every single individual is different. And people tend to behave differently in a same situation. As people are the one who work in the organization, the performance of organization depend on the performances by employees so managers should make the list of expected behaviours of employees within organization and it is necessary to know how to deal with it. The value system, emotional intelligence, organizational culture, structure, job design and the work environment are important in determining human behavior. An appropriate culture can change the behavior of individuals. Organizational structures Organizational structure is a system used to define a hierarchy within an organization. It identifies each job, its function and where it reports to within the organization. (Lucy Friend, N.D) There are several organizational structures; however, the type of structure in an organization depends on aim, size of the business, and industry. Carefully chosen structures will improve the communication throughout the organization. Types of Organizational Structures Line Structures This is a structure, where authority...
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...Organisational structure Organizational structure refers to both the formal and informal frameworks that shape how a business is operated. An organization structure determines how employees are grouped together and plays a large role in a firm’s success. Choosing a structure is not a one-size-fits-all decision, and business owners must select the model that best suits the needs of their organization. Traditionally, many organisations have been in the form of a Pyramid structure. Most responsibility lies at the top and there is more staff at the bottom with less responsibility. There is a hierarchy, and staffs know their position within the organisation. Hierarchies have tall and flat structure Tall organisation Tall organizational structure is one which has many levels of hierarchy. In these organizations, there are usually many managers, and each manager has a narrow span of control, they are in charge of only a small group of people. Tall structures tend to be more complicated and complex, and may be slower to respond to market changes than organizations where managers have a larger span of control. Employee satisfaction may be lower in a tall organization because of the many layers of bureaucracy and rigid rules. Tall organizations may face higher costs than in other types of business structures. One reason for this is the large number of managers and supervisors required in a tall structure. Advantages: There are various advantages of tall organizations. *...
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...119SAM Organising for Business Coursework 1 1. Why does organisational structure matter? Illustrate your answer using appropriate examples ………………………………………………………………………………………………………….. This essay will look thoroughly at organisational structure and its importance to businesses. How an organisation is structured determines the way it operates and performs. An organisational structure is the way in which a business divides and uses its resources to complete a variety of task to ensure that objectives are met. It clearly allocates responsibilities to employees and departments. The way an organisation is structures will be dependent on the objectives they hope to achieve. An effective organisational structure should be suited to the business which will maximise efficiency and success. If a business uses an inappropriate organisational structure it will hinder the success of the business. “Good organization structure does not by itself produce good performance ... But a poor organization structure makes good performance impossible, no matter how good the individual managers may be”(Drucker1989). This statement shows the importance of a good organisational structure and how performance in restricted without it. Furthermore organisational structure is importance for a number of reasons. One benefit is that it provides a framework which the organisation can be organised which will allow the firm to achieve key objectives and aims. Also Tasks are able to be broken...
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...CAMPARISON AND CONTRASTS BETWEEN DIFFERENT ORGANISATIONAL STRUCTURES AND CULTURE: Organizational Structure: Organizational structure can take many forms; it’s affected by size, the difficulty the task it performs, including the environment and the culture. The structure you choose for your company is what will determine how your company will perform. It will determine the negative and positive effect in your company. It allows the owner of a business to have a glimpse of the grounding and structural choices, so he can have knowledge of competitors, and also organize his employees to the best advantage of his company. Some organizations have bureaucratic structures, these are hierarchical. These types of structures have long chain command, from the top layer to the bottom. The hierarchical structures were much popular during the 20th century. With this type of structure, it will ensure a smooth command structure, because of the narrow span control (The number of people that report to manger or supervisor). In contrast hierarchical structure is the Flat structure, which has few layers are on layer of management. The chain of command is short and span of control is wide. Command and communications will be short, fast and effective. It’s basically used for project work within an organization. People with special skills makes up the team of the structure, these people include the HR and other skillful people. Long command structure will not work smoothly with entrepreneurs’...
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