Improving Organisational StructureAS Business Studies Unit 2

Aims and ObjectivesAim: Understand different types of

organisational structure.Objectives: Define work load, job roles & delegation Explain communication flows and the

problems which can occur in structures Analyse different types of organisational

structure

Starter What could happen to internal

communication when an organisational structure is tall?

What is the difference in the speed of communication flows between a tall structure and a flat structure?

Why are good internal communications important? Everyone in firm is aware of objectives

and what the firm is aiming for. Customer needs can be met through

communicating market research results. Decision makers are aware of ideas and

improvements for the business which could lead to competitiveness.

Decision makers are aware of changes in business environment such as a new competitor entering the market.

Hierarchical StructuresA

B

E F

C

G H

D

I J Allow specialist job roles to develop Opportunities for promotion which can be

motivational Managers work load determined by span of control Communication can be slow affecting decision

making

White Board Activity Draw a hierarchical structure

Give an advantage of having a hierarchical structure

Give a disadvantage of having a hierarchical structure

Matrix Structures

Used for projects which involve teams and functional areas.

Employees encouraged to use their talents through team working which can be motivating.

Work load may be unevenly spread resulting in resentment.

Team members may have motives and loyalties to their departments and not the project.

Projects Marketing

Operations

H/R Finance

A

B

C

White Board Activity Draw a matrix structure

Give an advantage of having a matrix structure

Give a disadvantage of having a matrix structure

Entrepreneurial Structures Found in small

businesses in competitive markets.

Decision making vital to maintain/increase market share

A core team of decision makers supported by team of employees.

Can only really work in a small business.

As businesses grow makes it impossible to manage work load.

Core Team

Employees

White Board Activity Draw an entrepreneurial structure

Give an advantage of using an entrepreneurial structure.

Give a disadvantage of using an entrepreneurial structure.

Mini Plenary Decide upon the best structure for the

following businesses, there is one red herring!: Tesco Small graphic design business An engineering firm Estate Agents BMW Lawyers

Improving Organisational StructuresAS Business Studies

Workforce Roles Supervisors Team Leaders Managers Directors

Each team will take one workforce role Who your role is responsible for in the org

structure What your roles likely span of control is or will

depend on Your roles relationship with work load and

delegation

SupervisorsDirectly responsible for one or more subordinate

Allocate jobs to subordinates and ensure completed to a satisfactory standard

Team Leaders

Responsible for a group of employees.Works best in a matrix structure.

Rather than allocating jobs, the team leader ensures everyone's workload is fair and that deadlines are met

ManagersEmployees who oversee a particular area of the business.Manage resources as well as employees.

Delegate to team leaders or supervisors, however decision making rests with managers or directors.

Directors

Appointed by shareholders to oversee the business.Take responsibility for a particular function.

Communication flows – are they

short and efficient

Levels of hierarchy – how many are

necessary?

Spans of control – are they broad or

narrow?

Work loads – is it spread evenly?

Job Allocation – how many people

needed to complete a task?

Delegation – can it be used to motivate?

Influences on Organisational

Structure

Themes for ApplicationFinancial problems: A firm is facing financial problems and

needs to reduce costs.

Solution: Delayer the hierarchy, however this will

mean a greater span of control which could mean a greater work load leading to de-motivated workers. However communication lines will be shorter/more effective.

Themes for ApplicationUnhappy Manager: A manager is unhappy that her

workload is too great

Solution: Make structure more hierarchical and

divide her job between two managers. However have lines of communication been made less efficient?

Exam Themes Growth of Business

Does the structure need to be become more formal with clearly define roles? How will this affect communication flow and motivation?

Market Conditions Have new competitors entered the market

forcing prices down and increasing need for a solid financial performance? Can de-layering help to achieve this?

Exam Themes Ownership

Does a change from a sole trader to a LTD create need to change the structure?

Customer’s Needs Are customers requirements so specific

that a matrix structure would be best?

Exam Question January 2011 Question 1c