15 september 2015© easilyinteractive.com 2006-101 organisational structure definitions press f5 on...
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19 April 2023 © easilyinteractive.com 2006-10 1
Organisational structure
Definitions
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Learning ObjectivesTo understand the following key terms:
Span of control Hierarchy Chain of command Delegation
To be able to identify the roles responsibilities and inter-relationships between people from an organisational chart
Extension - To be to evaluate advantages and disadvantages of a particular structure
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Organisational structuredefinitions (1/2) Hierarchy: The number of levels in an
organisation E.g. School
Chain of command: The way authority and power are passed down in the business - Who is responsible to whom?
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Headteacher
Deputy Heads
Heads of Faculty
Heads of Department
Teaching Staff
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Organisational structuredefinitions (2/2)Span of control: The number of
subordinates reporting to a superior
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Tall hierarchyNarrow span of control
Tight supervision and control
Short hierarchyWide span of control
Freedom for subordinatesLower cost
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Organisational structure
Identify the span of control of: the Managing Director the Purchasing Manager
Would you describe this as a wide or a narrow hierarchy?
ProductionControl
Manager
QualityManager
MarketingManager
Sales Manager
TrainingOfficer
IndustrialRelations
Officer
Buyer Logistics Officer
Warehousemanager
Sales Representatives Wages Clerk
CostAccountant
Purchasing Manager
Production Manager
Finance Manager
Marketing Manager
Personnel Manager
Managing Director
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Organisational structuretaskUse PowerPoint to construct an
organisation chart of the school
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ProductionControl
Manager
QualityManager
Public Relations
Sales Manager
TrainingOfficer
IndustrialRelations
Officer
BuyerTransport
OfficerWarehousemanagerSales Representatives
Wages Clerk
CostAccountant
Purchasing Manager
Production Manager
Finance Manager
Marketing Manager
Personnel Manager
Managing Director
Alternatively use mind-mapping software such as OpenMind by Matchware
Learning Objectives
To understand what an organisational chart is and its purpose
To be able to interpret an organisational chart
To be able to draw an organisational chart from information given
To be able to evaluate how appropriate an organisational chart is in a particular context
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Organisational structure
Sinbad Plc task
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There are several options for doing this task Print out the task alone (pdf). Students draw their own hierarchy Print out the task with the blank hierarchy (worksheet) for students
to fill in Do the task as an interactive class exercise
This task also serves as an introduction to some of the language and topics that students will be covering later.
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Organisational structure
Formal and informal structures
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Formal and informal structures
The formal structure of the organisation is the official structure Each employee has clear authority and
responsibility with official lines of communication both upwards and downwards
Informal structure is based on friendship groups, sports teams etc.
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Formal and informal structurestask Identify a range of formal
and informal groups that are within your school
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Formal Informal
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Organisational structures
Delegation,
centralisation
and decentralisation
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Delegation
Delegation: Passing authority (not responsibility) down the hierarchy to subordinates Involves giving junior managers greater
trust and authority The line manager retains responsibility Requires the superior to release control
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Centralisation and decentralisation Centralisation: Retaining control within the
top levels of the hierarchy – at head office Decentralisation: Delegating authority down
the hierarchy
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Centralisation Retains tight control at the
top of the organisation Employees are not able to
show flair and initiative
Decentralisation Motivates employees by
giving them more freedom and responsibility
Employees may not have the experience/training to carry out tasks effectively
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Delayering
Delayering: The removal of one or more layers of the hierarchy Improves communication – makes it faster
and reduces ‘Chinese Whispers’ Downsizing: Reducing the size of the
business to meet a new, lower level of demand
Organisations delayer to improve efficiency – i.e. in order to produce the same output with fewer inputs
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Delayeringdiscussion task
What are the advantages and disadvantages for a business of delayering?
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Save money in the long run Speed up communication Reduce bureaucracy
Demoralising Overload some workers Confusion during process Extra training costs Redundancy costs
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Business structure Division by function: The firm is divided up by
the jobs that people do e.g. Marketing, Finances, Production etc.
Division by product: The firm is divided up by product Cadbury’s has a manager responsible for each brand,
who manages a marketing team Geographical division: The firm is divided by
geographical area.
Most multinational companies have a geographical structure on top of one of the other two structures
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Business structuretask What are the advantages and disadvantages for a
business being organised in these three ways?
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By functionGeographically
By product
Advantages
Disadvantages