1. Organizational Structure
Unit 2.2

2. Delegation
Passing control and authority to others. This happens when a business grows. SMART Goals Exam tip: This sometimes gives employees a financial reward but this is also a form of motivation through empowerment.

3. Flat Span of Control
The number of people who are directly accountable to a manager.

4. Advantages of a Wide Hierarchical Structure
Delegation becomes important in managing an organization. Because of this there is faster career development.
Communication may be improved because there are fewer layers.
It is cheaper to run an organization with a wide hierarchical structure because there are fewer levels of management.
There is a psychological boost for those at the bottom of these organizations because they feel that they are closer to the senior managers.

5. Tall Span of Control

6. Advantages of Tall Hierarchical Structures
There is quicker communication between smaller teams.
Feedback is more effective.
Clearer lines of communication between different layers of management.
Smaller teams are easier to control and manage.
Greater specialization and division of labor can help increase efficiency and productivity.
There are greater opportunities to earn promotion because there are more levels.

7. Management Consultants
When the business grows the organizational charts change and adapt.
Manger: experience dictates how many people a manager can direct.
Organizational Culture: if the culture requires close monitoring then there will be a narrow span of control: example FFA if the culture is more democratic then their will be a wider span of control example: Google
Subordinates: highly skilled staff tens to have a wider span of control
Tasks: Depending on on what you are making/doing changes the supervision

8. Hierarchy
Refers to the organizational structure based on a ranking system. This determines the: Chain of Command: Formal line of authority. Delayering: Removing one or more levels of in the hierarchy to flatten the org chart. Exam tip: Do not confuse downsizing (reduction in the workforce) and delayering.

9. Advantages and Disadvantages of Delayering
Reduces costs by removing levels of management.
Creates anxiety and sense of insecurity among workers. This reduces productivity and harms moral.
Improves speed of communication between workers as a level of the chain of command is reduced.
Overloads staff and could make the quality of work decrease.
Encourages delegation and empowerment by providing more opportunities for employees to take on more varied responsibilities.
Managers have larger teams so decision making could take more time. It could create issues with deadlines.

10. Case Study Restructuring at Southmead College
More than 50 teachers at Southmead College went on strike over staff restructuring plans set out by Trish Dagg, the principal. She argued that restructuring was necessary to cut costs and to generate funds to invest in equipment and staff training. The restructured organization would generate minimal redundancies and some middle managers would be demoted to classroom teachers to cut costs. Staff at Southmead College were angry as the restructuring meant that some teachers would get a pay cut of up to $11,200 a year.

11. Questions
In the context of Southmead College, what is meant by Middle Managers? 2 marks
With reference to relevant business management theory, to what extent do you think that the decision to restructure Southmead College was a good decision? 8 marks

12. Centralization and Decentralization

13. Why switch?
Size of the organization: Larger businesses need to have decentralized structures in order to remain efficient.
The scale of the decisions that need to be made: Decisions that have a high cost impact need to be made by a centralized team.
The level of risk: High-risk decisions will also need to be made by the centralized team.
The corporate culture: Creative teams are usually better managed by a decentralized structure so that they can have more autonomy over their work.
Management attitudes: Managers that have a positive take on their employee abilities are more likely to delegate.

14. Project based organization
Construction, software engineering, entertainment are examples. This is so that they can adapt to the market quicker. Temporary period to execute specific projects. Different business functions come together to work on a project.

15. Handy’s Shamrock Organization

16. People are the most important resource for a business
Charles Handy, co-founder of the London Business School, believed this and encouraged meeting the needs of workers through methods such as job enrichment and flexible working practices. He also believed that organizations and humans change with time and therefore short-term jobs that an organization needs should be contracted out to specialty firms.

17. 3 leaves of the Shamrock Organization
Core staff: Full-time professional workers that operate the daily operations of the business.
Peripheral workers: Part-time or temporary workers who are hired and employed when they are needed.
Outsourced workers: This group consists of individual businesses that are not employed by the organization but are paid to complete particular tasks.