organisational structure

people in business section

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  • Created on: 23-05-11 19:19
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ORGANISATIONAL Define The way the jobs, responsibilities
STUCTURE and power within a business are
chart A diagram showing
Organisational Define job titles, lines of
hierarchy communication and
responsibility within a
The vertical division of
authority and
accountability in an
organisation Managers
Shop floor

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To divide the org into divisions/business functions
ORGANISATIONAL Key features with a common purpose (e.g. marketing, finance,
STUCTURE Of a hierarchy etc).
·Every individual would answer to one person,
their line manager,
·No manager would be overloaded with too many
Consultation subordinates, so the span of control is low,
Asking the views of those affected by decisions. ·To achieve low spans of control, it is necessary to
Centralisation have many management layers.…read more

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ORGANISATIONAL Benefits and Drawbacks of
STUCTURE Matrix management ·Ensures that projects are better
Benefits and ·People in different departments
Drawbacks of Advantages
can use their ability and
Centralisation knowledge
Allows for consistent policies
Benefits and throughout the organisation =
·Have several different views
Drawbacks of De- standardisation
Centralisation Decisions can be made quickly
·Lead to greater motivation
Advantages Tight financial control ·Allows for possibility of synergy
Empower local managers - innovative The corporate view can be clearly
emphasised Disadvantages
Their local knowledge may…read more

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A diagram showing
Work roles Define job titles, lines of
communication and
responsibility within a
Job business.
Define allocation
The vertical division of Define
authority and
The way the jobs, responsibilities
accountability in an
and power within a business are
organised.…read more

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Responsibility Be accountable for ones actions.
2. Accountability The extent at which a named The passing of authority
individual is responsible for down the hierarchy from
success/failure of a project /task. the manager to the
3. Authority The ability/power to carry out a task.
Improving the
>Mutual trust between manager and subordinate
>Suitable person should be chosen to delegate
to i.e. skilled, trustworthy etc.…read more

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One-way Two-way
No Message to be
feedback understood and The process of
dialogue takes place. exchanging information
between two or more
Effectiveness of individuals or groups of
communication people.
allows...…read more

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Informal Formal Lateral Vertical
Through the Procedures/rules/ Same level Downwards
grapevine regulations or upwards
How organisational
structure affects Communication channels Open Closed
business performance
Clarity of accountability Everyone Communication
this means that entitled to know with only a few
achievement or and people
recognition leads to a communicate
higher motivation
Delegation this means
that it increases
managerial success or Structure is influenced by
business performance The size of the
Quality circles this organisation
means that they benefit Nature of the organisation
operationally or…read more


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