What Is Organisation?

Organization structure

1. Organisation

2. Organisation ”Organization is a structural relationship by which an enterprise is bound together and the framework in which individual effort is coordinated.” Koontz and O’Donnell

3. Organising Process of determining the activities to be performed, arranging these activities to administrative units as well as assigning managerial authority and responsibilities to people employed in the organization..

4. Importance of organizing Focus on, and facilitate the attaining of objectives.. Arrangement of positions and jobs within the hierarchy.. Define responsibilities and line of authority of all levels.. Creating relationships that will minimize friction..

5. Organizing and organization structure Organizing The process of arranging people and other resources to work together to accomplish a goal. Organization structure The system of tasks, workflows, reporting relationships, and communication channels that link together diverse individuals and groups. Management 8/e - Chapter 10 5

6. Why Have a Structure? A clear structure makes it easier to see which part of the business does what An organisational structure is the way in which a business is arranged to carry out its activities

7. Management Structure and Design The choice of structure impacts the organisations culture – their ethos and beliefs If businesses are looking to change their direction they often look at restructuring

8. Organisational structure Includes: The routes through which communication pass through the business Who has authority and power and responsibility within the business The roles and titles of people within the business The people whom individual employees are accountable for and those for whom they are responsible

9. Key terms Hierarchy – the number of layers of levels within an organisation Subordinate – a worker Span of control – the number of subordinates who directly report into a manager Chain of command – the line of communication and authority from the top to the bottom of the hierarchy

10. Formal structures  The structure of the organization in its official state. An organization chart is a diagram describing reporting relationships and the formal arrangement of work positions within an organization. An organization chart identifies the following aspects of formal structure: The division of work. Supervisory relationships. Communication channels. Major subunits. Levels of management. Management 8/e - Chapter 10 10

11. Informal structures  A “shadow” organization made up of the unofficial, but often critical, working relationships between organization members. Management 8/e - Chapter 10 11

12. Functional structures People with similar skills and performing similar tasks are grouped together into formal work units. Members work in their functional areas of expertise. Are not limited to businesses. Work well for small organizations producing few products or services. Management 8/e - Chapter 10 12

13. Functional structures in a business, branch bank, and community hospital. Management 8/e - Chapter 10 13

14. Divisional structures Group together people who work on the same product or process, serve similar customers, and/or are located in the same area or geographical region. Common in complex organizations. Avoid problems associated with functional structures. Management 8/e - Chapter 10 14

15. Divisional structures based on product, geography, customer, and process. Management 8/e - Chapter 10 15

16. Types of divisional structures and how they group job and activities: Product structures focus on a single product or service. Geographical structures focus on the same location or geographical region. Customer structures focus on the same customers or clients. Process structures focus on the same processes. Management 8/e - Chapter 10 16

17. Matrix structure Combines functional and divisional structures to gain advantages and minimize disadvantages of each. Used in: Manufacturing Service industries Professional fields Non-profit sector Multi-national corporations Management 8/e - Chapter 10 17

18. Matrix structure in a small multiproject business firm. Management 8/e - Chapter 10 18

19. Team structures Extensively use permanent and temporary teams to solve problems, complete special projects, and accomplish day-to-day tasks. Often use cross-functional teams. Management 8/e - Chapter 10 19

20. How a team structure uses cross-functional teams for improved lateral relations. Management 8/e - Chapter 10 20

21. Network structures A central core that is linked through networks of relationships with outside contractors and suppliers of essential services. Own only core components and use strategic alliances or outsourcing to provide other components. Management 8/e - Chapter 10 21

22. A network structure for a Web-based retail business. Management 8/e - Chapter 10 22

23. Spans of control in “flat” versus “tall” structures. Management 8/e - Chapter 10 23

24. Entrepreneurial Structure Often found where businesses operate in competitive markets and especially where rapid decisions are needed Have a few core workers at the centre of the organisation and peripheral workers surrounding them Depends on how good the core workers are at managing and making decisions Can be difficult for larger organisations