1. ORGANISATIONAL STRUCTURE
LECTURE 11
ORGANISATIONAL STRUCTURE

2. Organisational Policy & Objectives
Objectives set out more specifically the goals of the organisation, the aims to be achieved and the desired end results
Policy is developed within the framework of objectives. It provides the basis for decision-making and course of action to follow in order to achieve the objectives. Policy is translated into rules, plans and procedures.

3. Critical Reflection
‘In large scale organisations, the goals and objectives of the organisation, management and the workforce are never likely to be fully compatible. Attempts at harmonisation are not worth the effort and may cause further friction. It is easier just to accept the inevitability of organisational conflict’.
To what extent do you agree? How would you attempt to
achieve compatibility of goals and objectives?

4. A systems view of organisational goals and objectives

5. Dimensions of organisational structure
It is unclear whether organisational structure follows the corporate strategy or strategy follows the organisational structure
Although it may not be possible to define which one comes first, there is the need to ensure that strategy and structure are consistent with each other

6. Organisational structure defined
It is the division of work among members of the organisation and the co-ordination of their activities so that it can be directed towards the goals and objectives of the organisation. The structure defines tasks and responsibilities, work roles and relationships as well as channels of communication.

7. Objectives of structure
The objectives of organisational structure can be
summarised as to provide:
The economic and efficient performance of the organisation and the level of resource utilisation
Monitoring the activities of the organisation
Accountability for areas of work undertaken by groups and individual members of the organisation

8. Objectives of structure cont’d
Co-ordination of different parts of the organisation and different areas of work
Flexibility in order to respond to future demands and developments and to adapt to changing environmental influences
The social satisfaction of members working in the organisation

9. Organisational structure and culture
Culture is a contingent factor of structure
Watson (1998) suggests that we must be careful not to treat structures and culture as if they are solid things that exist separately from the processes and relationships that the two concepts are intended to help us make sense of.

10. The importance of good structure
According to Drucker, it is the correct design of structure that is of most significance in determining organisational performance
…the form of organisational structure we employ transports values back into society and carries a message about how to treat people
Child

11. Division of work by major purpose or function

12. The Human Element
The functions of the formal structure, the activities and the defined relationships within it exist independently of the members who carry out the work. However, personalities are important part of the working of the organisation
Lord Forte , drew attention that the human aspect in a business is vital; you can keep drawing squares and lines, but within these squares you must have people and they must be deeply involved with the business. If this does not happen, then the lines and squares and diagrams mean nothing

13. The interrelated levels of organisation
Organisations are layered. The determination of policy and decision-making, the execution of work, the exercise of authority and responsibility are carried out by different people at varying levels of seniority throughout the organisational structure
The three broad interrelated levels of the hierarchy are: technical level, managerial level/Institutional level and the community level

14. Interrelated levels of organisation

15. The interrelated levels of organisation explained
The Technical Level: is concerned with specific operations and discreet tasks to be done. For example the physical production of goods in a manufacturing firm.
Managerial/Organisational Level: is concerned with the co-ordination and integration of work at the technical level. Decisions at this level relate to the resources needed for performance at the technical level.

16. The interrelated levels of organisation explained
The Community or Institutional Level: concerned with broad objectives and the work of the organisation as a whole. Discussions at this level include selection of operations and development of the organisation.
Examples of community level within organisation are the Board of Directors, governing bodies of educational institutions, trustees of an NGO.

17. Interrelationship of Levels
In practice there is no clear division between determination of policy and decision-making.
The levels interrelate for example; decisions taken at the community or institutional level determines objectives for managerial level and decisions at the managerial level set the objectives for the technical level

18. Underlying features of organisational structure
Variables that influence organisational structures
and system of management include situational
factors and contingency approach.
The following also influence decisions on
structural design:
Changing patterns of work organisation
Managerial processes such as delegation and empowerment

19. Reflections Organisations are collections of people brought
together for a purpose.
To achieve this purpose successfully, people
need to be organised within the best possible
structure.
Decisions on structure are primary strategic
decisions.
Structure can make or break an organisation

20. Basic considerations in the design of organisation structure

21. The Task and Element Functions
In order to produce a good or service, there are
four essential functions that the organisation
must perform and these are:
The good or service must be developed
Something of value must be created
The product or service must be marketed
Finance is needed to make available resources used in developing, creation, marketing and distribution of product or service.
These essential functions are referred to as
TASK FUNCTIONS

22. The Task and Element Functions cont’d
However, other activities of the organisation are not directed towards specific and definable ends but are supportive of the task functions and an Intrinsic part of the management process. These are referred to as ELEMENT FUNCTIONS examples of element functions are: Human Resource Management, Quality Control Division, Public Relations.

23. Task and Element functions cont’d
However, it must be noted that what constitute a task or element function may depend on the type of organisation.

24. Implications of Task and Element Functions on Organisational Structure
The two kinds of functions differ in a number of
ways and have important implications for
Organisations.
Failure to distinguish between the two types of functions can lead to confusion in the planning of structure and in the relationship between members of the organisation.

25. Implications of Task and Element Functions on Organisational Structure
For example activities concerned with raising funds for the business, keeping accounts and determination of financial policy are seen as Task Functions. Management accounting concerned with prediction and control of production administration is an element function. Hence primarily a servicing and supportive one.

26. Critical Reflection ‘Many organisationsal conflicts arise through
element and task functions. Such as the Human
Resource Management overstepping
responsibilities and the failure to recognise that
their primary function is to support the essential
task functions of the organisation’
What are your views? What has been your
experience between the task and element functions?

27. Division of work and grouping of people
The most commonly used basis for grouping
activities is according to specialisation, the use
of same set of resources or the shared expertise
of members of staff.
Each organisation is different it is a matter of decision as to which activities are important enough to be organised into separate functions i.e department, sections or units.

28. Division of work by major purpose or function

29. Division of work by product or service

30. Division of work by location

31. Factors to consider for groupings
The culture of the organisation
The need for co-ordination
The identification of clearly defined divisions of work
Economy
The process of managing the activities
Avoiding conflicts
The design of work organisation which takes account of the nature of staff employed, their interests and job satisfaction.

32. Centralisation and Decentralisation
The balance between centralisation and decentralistion is one of the major debates in organisational structure
Each approach has its advantages and drawbacks

33. Advantages of centralisation or decentralisation

34. Principles of Organisation
The classical writers placed emphasis on the definition of organisational structure in terms of division of work, chain of command, span of control and reporting relationships. Urwick, L. (1947) originally identified 8 principles of organisation and later reviewed to 10 as follows:

35. Principles of Organisation
The principle of the objective
The principle of specialisation
The principle of co-ordination
The principle of authority
The principle of responsibility
The principle of definition
The principle of correspondence
The principle of span of control
The principle of balance
The principle of continuity

36. Span of control and the Chain of command
Span of control refers to the number of subordinates who report directly to a given manager or supervisor.
According to Urwick the span of control to a given supervisor or manager should not exceed six (6)

37. Span of control and the Chain of command
The chain of command refers to the number of different levels in the structure of the organisation sometimes called the scalar chain.
The chain of command establishes the vertical graduation of authority, responsibility and the framework for superior-subordinate relationships in an unbroken line down from the top of the organisation.
WHERE DO YOU FIND YOURSELF IN THE SPAN OF CONTROL AND CHAIN OF COMMAND?

38. How span of control affects organisational structure

39. Critical reflection: Is the hierarchy obsolete?
Advancement through the hierarchy is seen as an indicator
of career progression, recognition of merit and reward for
hard work. Organisations are a form of social stratification.
Removing the hierarchy will only cause lack of ambition and
dissatisfaction’
To what extent do you think this statement has any validity in
modern work organisations? How do you feel about working in
an organisation with little or no hierarchy?

40. Effects on lack of organisational structure or deficiency in the structure
Organisational life becomes illogical because in good social practice no member should be appointed to a senior position without identification of responsibilities and relationships attached to the position
Cruelty on staff not knowing exactly their role in the organisation. Likely to be blamed for poor performance.

41. Effects on lack of organisational structure or deficiency in the structure
Organisations may waste their human resources because jobs are not put in functional specialisations
Inefficiency because the organisation is not founded on any principles and managers are forced back on personalities. Playing politics on promotion, study leave etc by managers

42. Effects on lack of organisational structure or deficiency in the structure
Low motivation and morale
Late and inappropriate decisions
Conflict and lack of co-ordination
Poor response to new opportunities
Rising costs
Provides opportunity for illicit activities of staff

43. Empowerment & Control
The various activities of the organisation has to be planned, organised, directed and controlled.
It is important that individuals are empowered with authority that commensurate with their positions for the effective control of organisational operations

44. WHERE IS THE STRUCTURE OF YOUR ORGANISATION?
Contributions
Questions
Criticisms
Please do not go and change your organisational
structure always advise and remember
organisational structure is a strategic decision