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Organisational structure

Organisational structure. THE TIMES 100. In small firms: Each worker may undertake a range of roles The structure may be informal and fluid As firms grow bigger: The roles and responsibilities of each worker must become clearer A more formal structure is necessary.

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Organisational structure

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  1. Organisational structure THE TIMES 100

  2. In small firms: • Each worker may undertake a range of roles • The structure may be informal and fluid As firms grow bigger: • The roles and responsibilities of each worker must become clearer • A more formal structure is necessary Internal structure of firms

  3. Leadership & managerial roles include: Workforce roles

  4. A function is the specific job of a person or department. The main functional areas in organisations are: • Finance • Human resources • Sales & marketing • Production and operations Functional areas

  5. Organisation charts

  6. Organisation charts - pictorial representations of the job roles and lines of responsibility within a business. • Hierarchy – an organisation structured in layers, with those at the top having greater authority than workers in lower levels Organisation structure

  7. Span of control – the number of workers one manager is directly responsible for • Chain of command – the line down which instructions are passed through the layers in the hierarchy Organisation structure

  8. These have: • Many layers • Small spans of control Characteristics of tall organisations: • High levels of control (appropriate for unskilled workers) • More opportunities for promotion • Poor communication as information has to pass through the many layers Tall organisations

  9. Flat organisations have: • Few layers • Large spans of control Characteristics of flat organisations: • Low levels of control (suitable for skilled, experienced & motivated workers) • Better communication • Managers must delegate work due to larger spans of control, motivating employees Flat organisations

  10. De-layering involves removing one or more layers of middle managers De-layering can: • Cut the costs of paying many managers • Improve communication • Empower the remaining workers if they are given extra responsibilities • Result in a loss of experienced, skilled managers De-layering

  11. Matrix structures use a project-based approach to organisational design • Project teams are made up of representatives from the different functional areas • Matrix teams run alongside the traditional functional structure Matrix structures

  12. Matrix structures

  13. Authority for decision-making remains with senior managers Centralisation

  14. Authority for decision-making is delegated down or across the organisation Decentralisation

  15. Flexibility can be gained by using: Flexible workforces

  16. Organisational structure in context

  17. Schools have faculty structures, department stores are structured by product and large organisations have functional structures. How is the Forestry Commission structured? Use the Forestry Commission case study The structure of the Forestry Commission

  18. The Forestry Commission uses a flat organisational structure. What does this mean and why is it suitable for the Forestry Commission? Use the case study to help you Flat structures

  19. How does the Forestry Commission benefit from having both centralised and decentralised decision-making in operation? Use the Forestry Commission case study to help you Centralisation & decentralisation

  20. Give examples of when the Forestry Commission uses matrix teams Use the case study to help you Matrix structures at the Forestry Commission

  21. Organisational structure lesson suggestions and activities (The Times 100) • Forestry Commission case study (The Times 100) • Forestry Commission website Useful resources

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