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CHAPTER 9 BASIC ELEMENTS OF ORGANISATIONAL STRUCTURE. Lecture outline. Nature of organisational structure Job design Types of departmentalisation Methods of vertical co-ordination Promoting innovation (methods of horizontal co-ordination). Nature of organisational structure.

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Chapter 9 basic elements of organisational structure l.jpg

CHAPTER 9BASIC ELEMENTS OF ORGANISATIONAL STRUCTURE

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Lecture outline

  • Nature of organisational structure

  • Job design

  • Types of departmentalisation

  • Methods of vertical co-ordination

  • Promoting innovation

    (methods of horizontal co-ordination)

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Nature of organisational structure

Formal pattern of interactions and co-ordination designed by management to link the tasks of individuals and groups in achieving organisational goals.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Nature of organisational structure

Four elements:

  • Assignment of tasks and responsibilities to individuals and units.

  • Clustering these to form a hierarchy.

  • Mechanisms for vertical co-ordination.

  • Mechanisms for horizontal co-ordination.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Nature of organisational structure

  • The organisation chart

    • Line diagram depicting broad outlines of an organisation’s structure.

  • Principles chart design

    • As few hierarchical levels as possible.

    • Charts should show who has authority over who.

    • Charts should show official lines responsibility & communication.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Nature of organisational structure

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Job design

  • Job design

    Specification of task activities associated with a particular job.

  • Design jobs to enhance motivation

    Job simplification: breaking jobs into small elements.

    Job rotation: moving through sets of tasks in sequence.

    Job enlargement: wider range of similar tasks.

  • Alternative work schedules

    Managing work diversity.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Managing diversity & work schedules

‘… balancing work and personal life’.

Flexitime: core hours tobe worked, others

at employee discretion

Job sharing: two or

more people sharing

a full-time job

Compressed work

week: longer

hours worked

per day, shorter

working week

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Types of departmentalisation

Departmentalisation:

Clustering of individuals into units and units into departments and larger units to facilitate achievement of organisational goals.

  • Functional

  • Divisional

  • Hybrid

  • Matrix.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Types of departmentalisation

Functional: based on

expertise,

skill & similarity

of work activity.

Divisional: based on

product

or market similarities.

Hybrid: some

activities

grouped by function,

some

by products or markets.

Matrix: Superimpose

horizontal divisional

over hierarchical

functional structure.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Linking of activities at the top of the organisation

with those at the middle and lower levels to

achieve organisational goals.

  • Formalisation

  • Span of management

  • Centralisation vs de-centralisation

  • Delegation

  • Line & staff positions.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Formalisation:

  • Degree to which written policies, rules, procedures, job descriptions and other documents specify what actions are(not) to be taken under a given set of circumstances.

  • Extent of formalisation tends to grow with age & size.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Factors influencing span of management:

  • High competencelevels.

  • Low interaction requirements.

  • Work similarity (between organisational peers).

  • Low problem frequency and seriousness.

  • Physical proximity.

  • Few non-supervisory duties of managers.

  • Considerable available assistance.

  • Highmotivational possibilities of work.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Centralisation

Extent to which power & authority are retained at the top organisational levels.

De-centralisation

Extent to which power & authority are delegated to lower levels.

Factors favouring centralisation

  • Large organisational size

  • Geographic dispersion

  • Technological complexity

  • Environmental uncertainty.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

‘… extent to which power and authority will be retained at upper levels’. Influenced by:

Large size: larger

organisations

likely to be more

Decentralised.

Geographic dispersion:

more dispersed likely to be

decentralised, to enable

control at a number of sites.

Environmental uncertainty:

with rapid change, need for more

employees to be involved in

responding to challenges.

Technological complexity:

with more complex

technology,need to devolve

authority to lower levels.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Delegation

Assignment of part of a manager’s work to others, along with both responsibility & authority necessary to achieve expected results.

Factors restraining delegation

  • Fear subordinate failure.

  • Time to train subordinates.

  • Enjoy doing tasks.

  • Release of authority.

  • Concern for task performance.

  • Fear subordinate competence.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of vertical co-ordination

Configuration of line and staff positions:

  • Line authority

    Authority following the chain of command established by the formal hierarchy.

  • Functional authority

    Authority of staff over others in the organisation in matters related directly to their respective functions e.g. HRM dept.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of horizontal co-ordination

Horizontal co-ordination:

Linking of activities across departments at similar levels.

  • Need for information processing across the organisation.

  • Promotes innovation through dissemination of ideas & information.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Methods of horizontal co-ordination

Horizontal co-ordination promoted by:

  • Slack resources

    Cushion of resources that facilitates adaptations to internal/external pressures, as well as initiation of changes.

  • Information systems

    One information source for many users.

  • Lateral relations

    Direct contact, liaison roles, task forces, teams.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Lecture summary

  • The nature of organisational structure

    • Definition

    • Organisation chart

    • Job design.

  • Job design

    • Designing for motivation:

      • Jobenlargement, rotation, enrichment, simplification.

  • Types of departmentalisation

    • Functional, divisional, hybrid, matrix.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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Lecture summary

  • Methods of vertical co-ordination

    • Formalisation

    • Span of management

    • Centralisation vs de-centralisation

    • Delegation

    • Line & staff authority.

  • Methods of horizontal co-ordination

    • Slack resources

    • Information systems

    • Lateral relations.

© 2003 McGraw-Hill Australia Pty Ltd. PowerPoint Slides t/a Management: A Pacific Rim Focus Enhanced Edition. Slides prepared by David Meacheam & George Sansbury.


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