Organisational
Structures
Organisational Charts
Traditional Structure
Who fits is where?
•Managing Director/Owner
•Secretary
•Receptionist
•Senior Manager
•Supervisors
•Production manager
Who has more authority?
Organisational Charts
Traditional Structure
MD
Senior
Management
Middle
Management
Workers
Organisational Structure
Managing Director
Sales
Director
Marketing
Director
Production
Director
Sales
Managers
Advertising
Manager
Press
Relations
Manager
Production
Manager
Quality
Manager
Salesman
North
Region
Advertising
Assistant
Press
Assistant
Supervisors
Quality
checkers
Operators
Salesman
South
Region
Organisational Structure…
Managing Director
Administrator
Marketing
Manager
Advertising
Assistant
Production
Manager
Press
Relations
Assistant
Production
workers
Employees are organised horizontally
Employees are organised vertically
Sales
Manager
Organisational Structure…
Managing Director
Sales
Manager
Administrator
Marketing
Manager
Advertising
Assistant
Production
Manager
Press
Relations
Assistant
Etc
Production
workers
4 Functional Departments
Organisational Chart = a diagram which shows the internal
structure of an organisation
Functional Department = a group of specialised workers organised
to fulfil a task; e.g. Marketing, Accounting
Long Chain of Command
Managing Director UK
Sales
Manager
North
Salesman
South
Region
Salesman
South
Region
Secretary
Advertising
Director
Sales
Manager
South
Salesman
South
Region
Salesman
South
Region
Secretary
Tall structure
Long chain of command
Sales
Director
Press Director
Advertising
Manager
Press
Relations
Manager
Advertising
Assistant
Press
Assistant
Junior
Trainee
Advantages of Tall Organisational structure
Managers have only a few people to manage (narrow
span of control)
Employees can specialise in what they know best
Good promotion prospects because there are more
jobs
Bigger range of benefits, such as a car park, canteen,
social club
Disadvantages of Tall Organisational structure
Employees might feel very remote from the person
running the company, especially in a company like Tesco
where the Chief Executive is in one country and some
employees are in another country
The structure can be inflexible because employees will
have to work to rigid policies and procedures
Decisions can take a long time to filter down from the
Chief Executive
Departments might work in isolation
Short Chain of Command
Sales
Director
Salesman
South
Region
Salesman
South
Region
Salesman
South
Region
Salesman
South
Region
Short structure
Short chain of command
Managing Director UK
Advertising
Director
Advertising
Manager
Promotion
Co-ordinator
Press
Co-ordinator
Chain of Command = The structure in an organisation
which allows instructions to be passed down from
senior management to lower levels of management.
Advantages of Flat Organisational structure
Good communication because the business is small
New ideas can be quickly adopted by all staff
Staff feel they can communicate with the manager
Can operate informally because employees will know
everyone else and they can easily help other staff
Decisions can be taken and put in place very quickly
Disadvantages of Flat Organisational structure
Employees might feel that there is little chance of
promotion because there are only a few people in the
organisation; this can be demotivating
Employees might feel that they have to do a range of
jobs rather than concentrate on just one.
Managers may have many people to manage (wide
span of control)
Span of Control
Managing Director UK
Sales
Director
Salesman
South
Region
Salesman
South
Region
Salesman
South
Region
4 people
Advertising
Director
2 people
Salesman
South
Region
Advertising
Manager
Promotion
Co-ordinator
Press
Co-ordinator
3 people
Span of Control = The number of subordinates
reporting to a manager. In a short Chain of Command
usually more people report to one manager. In a long
Chain of Command less people report to one manager
Delegation
Delegation = Giving a subordinate the authority to
perform particular tasks. But the AUTHORITY stays
with the manager.
Delegation
Makes the work
interesting
Staff feel
trusted
Give authority to
others to take
decisions
DELEGATION
Some managers
are reluctant to
delegate
Increases staff
job satisfaction
Allows
managers
more time for
other tasks
Managers lose
some control over
staff they manage