Term
| How can a large business be organised? |
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Definition
¡There are 3 main ways a business can structure its organisation – no one way is right or wrong!
1.By Function
2.By Process
3.By Region |
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Term
| Purpose of an organisation chart |
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Definition
¡Usually used in larger businesses to show different roles or departments and where they fit into the business
¡Shows different levels of responsibility and who reports to who - COMMUNICATION
¡Size of company will dictate number of layers |
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Term
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Definition
1.You get this a lot in limited companies
2.Each department does one part of the work of the business
3.The main advantage is that specialists can concentrate on their particular job
4.The main disadvantage is that different departments may not work well together. |
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Term
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Definition
1.This is normal for a multinational business
2.The divisions may be regional or national
3.Firms called holdingcompanies also have this structure |
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Term
| Different types of structure affect communication |
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Definition
¡There are different charts used to identify the structure of a business. Things to think about:
lWhat does the business do or make?
lHow do they communicate with their suppliers and customers
lHow many branches or sites does the business have?
lWhat does the future hold?
lDoes the business what a hierarchial or flatter structure? |
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Term
| Key points about Communication |
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Definition
¡For a business to be successful it will need to look at its structure and communication because without a good structure communication can break down.
¡If the structure is clear then everyone in the organisation knows what their responsibilities are and they report to within the organisation. |
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Term
| Hierarchical Structure: What is it? |
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Definition
¡A clear chain of command
¡A number of levels of responsibility
¡Communication takes place up and down the hierarchy
¡The chart type is one which consists of a number of layers
¡E.g. CYPD example |
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Term
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Definition
•Each layer has a clearly defined role
•Employees have a clear career structure
•Specialists can be employed at different layers
•Creates loyalty to the department or management layer |
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Term
Hierarchical:
Disadvantages |
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Definition
•Depending on the size of the structure communication can be slow because of the amount of layers to go through.
•Communication between departments can be limited
•Departmental layer rivalry may exist which means the business does not pull together
•Staff may not feel part of the business |
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Term
| Flat Structure: What is it? |
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Definition
¡Employees have a greater degree of similarities in the amount of authority and responsibility they have
¡Usually fewer layers between managers and key decision makers and employees
¡Workers pull together to carry out tasks |
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Term
| Flat Structure: Advantages |
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Definition
•Many smaller organisations believe this type of structure is better as everyone within the business understands the objectives of the business
•Encourages cooperation between departments
•Team spirit may be improved
•Decisions can be made quicker and the business can respond to changes in the market faster |
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Term
| Flat Structure: Disadvantages |
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Definition
•With fewer managers there can be more employees requesting advice or information which could hinder communication
•Workers may not be clear about who their line manager is
•Job responsibilities and roles may not be clear |
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Term
| Matrix Structure: What is it? |
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Definition
¡Different levels of responsibility but it also has parallel departments or teams performing tasks
¡Communication occurs between all sections or departments creating a multi-functional team approach
¡It reduces the possibility that skills and responsibilities could be duplicated by identifying functions or common features of the business that are shared by different parts of the business |
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Term
| Matrix Structure: Advantages |
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Definition
•More efficient allocation of specialised skills across the business
•Can take advantage of the shared services
•Project managers use smaller matrix-style structures for project & team organisations so they can track skills, tasks & resources across projects
•Teams can bring together different skills
•Project managers have a clear budget |
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Term
| Matrix Structure: Disadvantages |
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Definition
•Putting successful teams together is not always easy
•Staff may not know who their responsibility is to – is it their line manager or a project manager?
•Teams and projects not always as easy to monitor and may result in being more costly. |
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Term
| Circular Structure: What is it? |
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Definition
¡This is where there is a continuous process where levels of responsibilities are mixed
¡The key principle is that with a circular chart, the responsibilities are not strictly defined
¡It generally refers to organisations which rely heavily on teams |
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Term
| Using ICT to create different charts |
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Definition
¡Diagrams help staff to visualise the chain of command
¡Select the template that suits your needs
¡Different businesses will use the diagrams in different ways
¡a matrix structure in one organisation can look quite different to that in another |
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