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Trends in Organizational Structure

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.

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Trends in Organizational Structure

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  1. Trends in Organizational Structure By: Denny Prasetya

  2. 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.

  3. Trends • Wider Span of Control • More Delegation • Decentralization

  4. Wider Span of Control • A span of control  the number of people who report to one manager in a hierarchy

  5. Narrow Span of Control Tall Structure

  6. 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

  7. 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.

  8. Wide Span of Control Flat Structure

  9. 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.

  10. Disadvantage of Wide Span of Control • Less supervision

  11. Role of Manager on a Span of Control • Managers receive report from their subordinate

  12. More Delegation • Delegation  Giving authority to employees to do a given task

  13. 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

  14. 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

  15. Role of Manager on Delegation • Managers ask their employees to do a task

  16. 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

  17. Decentralization • Delegating important decisions to lower division

  18. Centralization • Decision-making power occurs at the head office of a company.

  19. Forms of Decentralization • Functional Decentralization • Federal Decentralization • Regional Decentralization • Decentralization by project

  20. Role of Manager on Decentralization • Managers in each departments make decisions.

  21. Is complete decentralization a good idea?

  22. Differences between Delegation and Decentralization • Meaning • How it takes place • Narrow and Wide • Control • Essential and Optional

  23. Quiz Time! Why some managers don’t want to delegate ? What is the difference between decentralization and centralization ? What is delegation ?

  24. 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!

  25. 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.

  26. Thank you

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