improving organisational structures

• SPAN OF CONTROL- the number of subordinates who a line manager is directly responsible for supervising. 
• ORGANISATIONAL STRUCTURE- the relationship between different people and functional areas within a business. 
• ORGANISATIONAL CHART- a diagram showing the lines of authority and layers of hierachy within an organisation.
• ORGANISATION HIERACHY- the vertical division of authority and also accountability in an organisation.
• DELEGATION- the process of passing authority down the hierachy from a manager to a subordinate. 
• RESPONSIBILITY- being accountable for one's action.
• ACCOUNTABILITY- the extent to which a named individual is held responsible for the success or failure of a particular action. 
• AUTHORITY- the ability or power to carry out a task. 
• COMMUNICATION- the process of information exchange between individuals or groups. 
• INTERNAL COMMUNICATION- the exchange of information between people inside of an organisation.

• EXTERNAL COMMUNICATION- the exchange of information between people and groups outside of the business. e.g. talking with suppliers or bank
• ONE-WAY COMMUNICATION- communication without any feedback between the sender and receiver e.g. notice on a board
• TWO-WAY COMMUNICATION- communication with feedback between sender and receiver e.g. question and answer 
• FORMAL COMMUNICATION- the exchange of information and ideas within and outside of a business using formal channels e.g. official letters and meetings
• INFORMAL COMMUNICATION- the exchange of information and ideas using unofficial channels within a business e.g. gossip
• VERTICAL COMMUNICATION- the exchange of information between people at different levels within an organisation.
• HORIZONTAL COMMUNICATION- the exchange of information between people at similar levels within an organisation. 

The basic hierachy

- the more levels of hierachy, the more difficult it is for communication to travel from the bottom through to the top. 

-This can frustrate and demotivate staff at the bottom of the hierachy 

Span of Control

- a wide span of control means a line manager is in charge of a lot of subordinates

-the problem with this is that it makes coordinating the actions of all the subordinates very difficult 

-on the other hand a manager might hold a narrow span of control of just one subordinate

-this can be bad as the subordinate feels constantly under pressure and observation

Tall structure

this is a business with many layers in their hierachy and with narrow spans of control. 

-this type of structure provides more opportunities for staff promotion and better control by management 

-however, communication channels are slow and important information could be lost through the layers!

these are businesses which have very few levels of hierachy and wide spans of control

-this type of structure encourages greater levels of delegation and this can motivate staff

-communication channels are also shorter

-however, managers will have less time for individuals and subordinates might feel overwhelmed due to the amount of work delegated to them.

this involves the passing of authority down the hierachy from line managers to subordinates. 

-This can motivate subordinates to who work has been delegated but it is important that the line manager ensures that the subordinate is able to fufill the task effectively. 

-the work that is delegated also needs to be meaningful for it to be motivating but it does free up valuable time for managers to focus upon other things.

effective communication is very important for the success of a business.

The key benefits include:

- the making of more informed decisions

-Better coordination of staff activities

-improved staff motivation

-it becomes easier to implement changes 

-as a business grows in size then it acquires additional levels within the hierachy which can slow down decision making.

-the clearer the lines of accountability the better as staff then know what their role is within the fim and who they are responsible to and for. 

-the stronger and more effective the flow of communication the better the decisions a business makes as they are more informed about the views of staff, managers and external groups such as customers.

-as a business grows in size then it acquires additional levels within the hierachy which can slow down decision making.

-the clearer the lines of accountability the better as staff then know what their role is within the fim and who they are responsible to and for. 

-the stronger and more effective the flow of communication the better the decisions a business makes as they are more informed about the views of staff, managers and external groups such as customers.

influences on the choice of organizational structure

• the size of the organisation
• the culture of the management e.g. a manager who likes to keep power and decision making decisions to themselves will favour a tall structure with a narrow span of control