Organisational Structure 13.1Understand the basic concepts of organisational structure.
Key elements of organisational structure
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Transcript of Key elements of organisational structure
Textbook pages 135-137
Level of hierarchy: layers of management and supervision in an organisation
Chain of command: lines of authority in an organisation
Lines of communication: how information is passed around an organisation
Span of control: number of subordinates one manager/supervisor is responsible for
The number of layers in the structure
Many layers suggests a need for close supervision
Few layers suggests that employees are given authority to make decisions
Organisations with traditional cultures tend to have many levels in the hierarchy. Each manager/supervisor has limited responsibility
Small, dynamic businesses tend to have fewer
Layers and managers/supervisors have more responsibility
Wide span = directly responsible for many employees/subordinates
Gives employees chance for more authority to make decisions
Narrow span = directly responsible for a small number of employees/subordinates
Gives employees less opportunity for decision-making.
Read the case study “Who’s in charge?” and answer the questions
Key Term:Delegation: passing of authority to make
decisions to employees further down the
organisational structure
As a business grows, the entrepreneur needs to
delegate authority to other people in theorganisation because they will not have enough
time to do everything.This process of delegation is very difficult and
potentially dangerous (Sausage Wars) andshould be monitored closely in the early stages.
Read through the cast study : Pigott Pastries and
answer the questions