The Structure of Organisations

1. The Structure of Organisations

2. Organisation • Internal, formal framework • How authority is transmitted • Often evolves

3. Organisation Chart

4. Organisation Chart • Overall responisibility for decision making • Formal relationships • Accountability and authority • Span of control – who report to whom • Formal channels of communication

5. Heirarchy • Layers with fewer and fewer people • Often called a pyramid • Vertical in nature – Tall or Flat

6. Easy to create Decision clearly from top Identifiable chaing of command ”role” culture – importance of roll determines position in heirarchy Archaic Rarely the most efficitient Horizontal links don’t exist Tunnel vision ”Safe” organisations can lead to inflexibility Pros Cons

7. Limited Company Organisation • Most companies have no majority shareholder • Board of Directors • Elected/appointed shareholders • Broad policies and objectives • Accountability to stakeholders • Appoint a CEO

8. Company Officers • CEO also called Managing Director • Chief Executive Officer • CFO – Financial • CTO – Technical • CMO – Marketing • CIO – Information • CCO - Creative

9. Some Company’s Boards • Ericsson • Vattenfall • Hewlett Packard

10. Matrix Structure • Cross cooperation between units • Task/project oriented • Gathers a team of specialists to complete a project • Emphasis on contribution to team

11. Pros Cons • Communication across traditional boundries • Less tunnel vision • Crossover of ideas • Easy to create new groups/constellations • Less direct control from top • Unclear leadership

12. Next time • Key principles • Reponsibilities • Authority • Accountability