Management wk 2– Stakeholders, Hierarchies , Span of Control

1. Managementwk 2– Stakeholders, Hierarchies, Span of Control Richard Selby

2. The stakeholders in a company means everyone who has an interest in the company. This includes: The owners Shareholders Banks or investment companies Other investors Employees Customers Suppliers Government Local/Regional/National/International (e.g. EU) Stakeholders

3. Stakeholders are interested in the way a company is organised So here are some possible ways…….

4. Management Hierarchies Managing director Production (P) Marketing (M) Finance (F) Research & development (R&D) Product 2 Product 3 Product 1

5. Management Hierarchies Managing director Human resource Management (HRM) Production (P) Marketing (M) Finance (F) Research & development (R&D) Product 2 Product 3 Product 1 Division of work by major purpose or function After Mullins’ “Management & organisational behaviour”

6. Management Hierarchies Managing director HRM Product 2 Product 3 Product 1 F M F R&D M P R&D P F M R&D P Division of work by product or service After Mullins’ “Management & organisational behaviour”

7. Management Hierarchies Division of work by location Managing director After Mullins’ “Management & organisational behaviour” HRM Area B Area C Area A F M F R&D M P R&D P F M R&D P

8. “Flat” hierarchical structure 1 2 3 4 5 6 7 Span of control = 7 After Mullins’ “Management & organisational behaviour”

9. “Flat” hierarchical structure Level 1 1 2 3 4 5 6 7 Level 2 Level 3 Span of control = 7 Number of levels = 3 After Mullins’ “Management & organisational behaviour”

10. “Flat” hierarchical structure Level 1 1 2 3 4 5 6 7 Level 2 Level 3 5 6 5 7 5 6 7 Span of control = 7 Number of levels = 3 Number of positions = 49 After Mullins’ “Management & organisational behaviour”

11. “Steep” hierarchical structure 1 3 2 Span of control = 3 After Mullins’ “Management & organisational behaviour”

12. “Steep” hierarchical structure Level 1 1 3 2 Level 2 Level 3 Level 4 Span of control = 3 Number of levels = 4 Number of positions = 49 After Mullins’ “Management & organisational behaviour”

13. “Steep” hierarchical structure Level 1 1 3 2 Level 2 Level 3 Level 4 Span of control = 3 Number of levels = 4 Number of positions = 49 After Mullins’ “Management & organisational behaviour”

14. It depends! What suits one company doesn’t necessarily suit another Another consideration is how many people one person can properly manage In some situations this may be 3 or 4 people, while in another situation it could be 20 or 30! Which hierarchy is better?

15. One factor may be to consider how many relationships there are to manage: Which hierarchy is better? Boss Employee • Two people - two relationships • One, Boss to employee • Another, Employee to boss

16. One way might be to consider how many relationships there are to manage: Which hierarchy is better? Boss • Three people - many relationships! • One, Boss to employee A • Another, Boss to employee B • Another, Employee A to boss • Another, Employee B to boss • Another, Boss to employees A & B as a group • Another, Employees A & B together to boss • Another, Boss and Employee A together to Employee B • Another, Employee B to boss and employee A together • Another, Boss and Employee B together to Employee A • Another, Employee A to boss and employee B together • And others …….. ! Employee A Employee B