Organisation

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  • Organisation
    • Line organisation is where authority and line of command flows from top to bottom
    • Staff organisation is where a person of the organisation provides advice and service to the line
    • A chain of command is the line of command from the top to the bottom of the organisation. It shows how responsibility is organised
    • Span of control is the number of subordinates that a superior is directly responsible for
    • Authority is the power to give orders, make decisions and enforce obedience
    • Responsibility is having a duty to deal with something or of having control over someone
    • Centralisation is where authority lies with senior management at the centre of a business
    • Decentralisation is where authority is delegated further down the hierarchy and away from the centre
    • Delegation is where authority or responsibility is given to a subordinate
    • Delayering is where the number of levels in a hierarchy is reduced
    • Hierarchy is the number of layers within an organisation
    • Functional organisation is where workers are grouped based on their skills and knowledge. it vertically structures each department with roles from president to finance and sales departments etc
    • Organisational structure by product is where each division focuses on a different prod1uct or service
    • A matrix structure is where individuals work across teams and projects as well as within their own department or function
    • A divisional organisation structure that organises activities around geographical, market or product and service groups
    • A tall structure is where a structure has a small span of control and many levels of hierarchy
      • There is more opportunity for promotion, leading to greater staff motivation
      • Staff have more support from their line manager
      • Higher degree of supervision as line managers have a limited number of subordinates
      • Many levels of hierarchy
      • Slow communication
      • Less responsive as there's longer lines of communication
      • Can be expensive to run due to high wages
    • A flat structure is where there is a wife span o control but  few layers of hierarchy
      • Few levels of hierarchy
      • responsive to change and decision making is quicker due to short lines of communications
      • Tasks must be delegated which can lead to feeling stressed and overstretched
      • There is less opportunity for promotion so staff may leave to go to other organisations
      • Staff are empowered to work independently and take more responsibility
    • It is important to have organisational structure because it provides clarity and guidance
      • Employees must know who to report problems to in difficult situations
      • structure improves efficiency as clarity is provided
      • structure motivates employees because they can see a map for promotion

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