UNIT 2 PEOPLE IN BUSINESS FULL NOTES

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II. PEOPLE IN BUSINESS: I
MPROVI
N G OS
Organisation structure
Organisation structure is the formal and systematic way the management of
a business is organised.
E ach depart
me nt
=
s epar
a t
e org by systems
B uss can
h ave
loads
of
dif
f
de part
me nt
s/f
e w .
Ma i
n:
F: mo ney,
accou nt
s
O: Ma nufactur
ing
ma king st
uff
, sup pl
y ser
v i
ces
M: plan deli
ver
ma rketi
ng mix,
kno w s
how
to sel
l
mo re
etc
HR: ma ke
sure enou gh
w or
kers,
rig ht
ski
l
ls
Factors determining Org structure
Size of buss: sma l
l
buss=
inf
o r
ma l
,
flat
hie r
archy
str
u c t
ure.
Large= compli
cated ,
more
layer
s of
h i
erar
c hy,
dep ar
tme nt
s and
functi
ons
Type of buss: op er
a t
e f
rom 1/
+
locat
i on.
S er
vice
or
ma nufc ser
vice?
O ver
seas
o per
ations/
ou tsour
ce ?
WF
type?(ski
ll
e d?).
Management and leadership style: of
ten
overl
ooked ,
an aut
ocrat
ic
leadershi
p
styl
e of
ten
resul
t
in
d i
ff
str
ucture
co mpa r
ed wi
th 1
w here l
ead ers
pref
e r
t o
delegate
responsi
bil
it
y
Competitive environment: or
g st
ruct ur
e i
n f
luenced by
d evel
opme nt
in
ma r
ket
e .g.
change
of
use
in
d i
str
ibuti
on chan nel
s,
suppli
ers,
comp eti
t or
s act
ions
Changing org structure
Why?
G r
ow t
h = f
orma l
st
ruc tur
e
es sent
ial
R e duce
co st
s and
c omp lexi
t y
E mp loyee
mo ti
vati
on need
b oost
ing
C S
an d
qua l
i
ty i
mp r
ov ement s
Challenges posed for management
ma nager
a nd
emp l
o ye e r
esis tance
d isr
upti
o n
and
demo tivati
on=
p ot
en tial
pr
obs
w i
t
h
staf
f
ret
ent
ion
c osts
(r
e dundancies)
n eg i
mp act
on
CS
o r
q ual
it
y
Whatever org structure chosen, essential accountability and responsibility
is clear. Wh en
it
s cl
ear
(shown by org chart
) staff
know
w hat
thei
r
task
is. =
Motivation= clearer accountability = easier to correct mistakes. Rai
l
a cci
d ents e.
g.
of
a ut
hori
ty
and r
es p ons i
bil
i
ty no t
being cl
e ar
.
Levels of hierarchy
The levels of hierarchy refer to the number of layers within an
organisation
Tall Hierarchies: nar
row span
of
cont
rol
Features: Advantages: Disadvantages

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Flat Hierarchies w i
de
span
of
cont
rol
Features: Advantages: Disadvantages
o f
ew
la yer
s o qui
ck deci s
ion maki
n g
o f
ew er
oppo r
tun i
ti
e s
fo r
o l
ess d i
rect
control
and
mo r
e o bet
ter
commu ni
cati
on= mo r
e pr
omo ti
on
del
ega ti
on r
esponsib il
it
y= moti
vati
o n
o f
ew er
oppo r
tun…read more

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Matrix Structure: combi
ning
tr
adi
ti
onal
depar
tment
s
Advantages: Disadvantages
o Can hel
p t
o
br eak
dow n
tr
a di
ti
onal
de part
me nt
o Memb ers
of
p r
ojec t
t
eams
ma y
ha ve
div
ided
loyal
ti
bar
ri
ers,
impro vi
ng commu nicat
ion
a cross
the
e nt
ir
e as
they r
eport
to
tw o l
i
n e ma na gers.…read more

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Communicatio Features
n
External Exchange
of
inf
ormati
on bet
w een
a f
ir
m and i
ndivi
dual
s,
groups
and ot
h er
or
g outside
business
Aimed at
ext
ernal
st
akehol
de r
s i
.e.
cust
omers.
By
w ebsi
tes/
adver
ts
Internal Exchange
of
i
n f
ormat
ion
that
t
akes
place
w i
t
h i
n an
organi
sat
ion:
i
.e.…read more

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Motivates employees ­ hel
p s t
hem f
e el
part
of o Too
ma ny
int
erme di
ari
e s
e.g .
too
ma ny
layer
s
bus o Geographi
cal
dis
tance
o Easier to control and coordinate business o Commu ni
cati
on overl
oa d
­e .
g.…read more

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