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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 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 Internal structure of firms
Leadership & managerial roles include: Workforce roles
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
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
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
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
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
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
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
Authority for decision-making remains with senior managers Centralisation
Authority for decision-making is delegated down the hierarchy Decentralisation
Flexibility can be gained by using: Flexible workforces
Using the organisation chart in the Specsavers case study to demonstrate your answers, define the terms: • Hierarchy • Delegate • Chain of command • Span of control Organisational structure
Specsavers uses a joint venture approach. Business owners buy into the Specsavers brand in order to run Specsavers stores. Explain how the business owners benefit from the centralisation of some activities. Use the Specsavers case study to help you Centralisation at Specsavers
Why is it important that there is some decentralisation within Specsavers? Use the case study to help you Decentralisation at Specsavers
There are a wide range of both professional and support roles within Specsavers. Explain what is meant by a job description and explain what is likely to be listed in a job description for either an Optometrist or an Optical Assistant. Use the case study to help you Job roles at Specsavers
Organisational structure lesson suggestions and activities (The Times 100) • Specsavers case study (The Times 100) • Specsavers website Useful resources
