Organisational Structure

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Organisational structure is the formal arrangement of jobs within an organisation it specifies how subordinares report to their superiors. This enhances coordinattion reduces conflict between employees regarding who is to carry out certain jobs. Work specialization – adam smith advocated that jobs should be divided into smaller parts, hence division of labour. This concept describes the degree to which tasks in an organisation are divided into separate jobs. The sessence of work specialization is that an entire job is not done by one individual, but instead is broken down into steps, with each step completed by a different person. Departmentalization – The basis by which jobs are grouped together. The five common forms of departmentalization include functional, product, geographical, process and customer departmentalization. Chain of command – This is the continouous line of authority that extends from upper organisational levels to the lowest levels and clarifies who reports to whom. It helps employees answer questions suh as “who do I go to if I have a problem?”or “ to whom am I responsible?”. According to henri fayol he states that a person should have one manager. Span of control – this concept is importanat because, to a large degree, it determines the number of levels and managers an organization has. All things equal the wider the span of control the more efficient the organisation. Centralization and decentralization – centarlization describes the degree to which decision making is concentrated at a single point in the organisation. If top managers make the organizations key decisions with little or no input from below then the organization is centalizes. In contrast, the more that lower-level empoyees provide input or actually make decisions, the more decentalization there is. As stated by Mary Parker Follett management often overlooked ways that employees can contribute when they are allowed to participate, “Authority should go with knowledge… whether...
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