8/12/2019 Wentworth Ob 2

1/26

Structure in an Organisation

8/12/2019 Wentworth Ob 2

2/26

What is organisational structure?

Organisational structure refers to the levels of management and divisionof responsibilities within a business, which could be presented inan organisational chart.

For simpler businesses in which the owner employs only himself, there isno need for an organisational structure. However, if the business expandsand employs other people, an organisational structure is needed.When employing people, everybody needs ajob description. These areits main advantages:

People who apply can see what they are expected to do.

People who are already employed will know exactly what to do.

8/12/2019 Wentworth Ob 2

3/26

Here is an example of a job description

When there is more than one person in a small business and they all do different

things, it means that they are specialising in different jobs.

8/12/2019 Wentworth Ob 2

4/26

Delegation

Delegation refers to giving a subordinate the responsibility and authority to do a given task.

However, the final responsibility still lies with the person who delegated the job to thesubordinate. Here are the advantages of delegation for managers and employees, as well as whysome managers choose not to delegate.

Pros for the manager:

By letting subordinate do smaller tasks, managers have more time to do more important tasks.

Managers are less likely to make mistakesif tasks are done by specialist employees.

Managers can measure the success of their task more easily.

Pros for the subordinates:

Work becomes more interesting and rewarding.

Employees feel important and trusted.

Helps train workers, giving them better career opportunities.

8/12/2019 Wentworth Ob 2

5/26

Why some managers do not want to delegate:

Why some managers don't want to delegate:

Managers are afraid that their employees will fail.

Managers want total control.

Managers are scared that the subordinate will do tasks better than them,making them feel insecure.

Delegation must mean:

A reduction in direct control by managers or supervisors.

An increase in trust of workers by managers or supervisors.

8/12/2019 Wentworth Ob 2

6/26

Organisational charts

Eventually, when a business grows larger and employs many people, they will have to

create an organisational chart to work out a clear structure for their company. Here is

an example of an organisational chart.

8/12/2019 Wentworth Ob 2

7/26

Here arethe most important features of the chart: It is a hierarchy. There are different levels in the business which has

different degrees of authority. People on the same level have the same

degree of authority.

It is organised into departments, which has their own function. It shows the chain of command, which is how power and authority is

passed down from the top of the hierarchy, and span of control, meaning

how many subordinates one person controls, of the business.

8/12/2019 Wentworth Ob 2

8/26

Advantage of an organisational chart:

The charts shows how everybody is linked together. Makes employeesaware of the communication channel that will be used for messages to

reach them. Employees can see their position and power, and who they take orders

from.

It shows the relationship between departments.

Gives people a sense of belongingsince they are always in one particulardepartment.

8/12/2019 Wentworth Ob 2

9/26

Chain of Command

8/12/2019 Wentworth Ob 2

10/26

Chain of Command

Here are two organisations, one having a long chain of command and the other

a wide span of control. Therefore, the longer the chain of command, the tallerthe business hierarchy and the narrower the span of control. When it is short,

the business will have a wider span of control.

In recent years, people have began to prefer to have their business have a

wider span of control and shorter chain of command. In some cases, whole

levels of management were removed. This is called de-layering.

8/12/2019 Wentworth Ob 2

11/26

Thisis because short chains of commands have these advantages

Communication is faster and more accurate. The message has to passthrough less people.

Managers are closer to all employees so that they can understand thebusiness better.

Spans of control will be wider, meaning that the manager would have totake care of more subordinates, this makes: The manager delegate more, and we already know the advantages of

delegation.

Workers gain morejob satisfaction and feel trusted because of delegation.

However, if the span of control is too wide, managers could lose control. Ifthe subordinates are poorly trained, many mistakes would be made.

8/12/2019 Wentworth Ob 2

12/26

Functional Departments

Here is an example of an organisational chart from a larger business

8/12/2019 Wentworth Ob 2

13/26

Here are the key features of this graph:

The business is divided into functional departments. They usespecialists for each job and this creates more efficiency. However,workers are more loyal to their department than to the organisation as a

whole. Therefore, conflict can occur between different departments.Managers working in these departments are called line managers, whohave direct authority and the power to put their decisions into effect overtheir department.

Not only are there departments, there are also other regional divisionsthat take care of outlets that are situated in other countries. They use thelocal knowledge to their advantage.

8/12/2019 Wentworth Ob 2

14/26

Key features

There are some departments which do not have a distinctive function but

still employs specialists and report directly to the CEO/Board of Directors.These departments are the IT department, and the EconomicForecasting department. Some say the HR department fits in thiscategory. These departments give specialist advice and support to theboard of Directors and line managers, and the managers of thesedepartments are called staff managers. They are often very highlyqualified personnel who specialises in only their area.

8/12/2019 Wentworth Ob 2

15/26

Here are the Pros and Cons of employing Staff Managers:

Pros:

Staff managers help and provide advice for line managers on things suchas computer systems.

Helps line managers concentrate on their main tasks.

Cons:

There may be conflict between the two groups on important decisions and

views. Line employees may be confused and do not know who to take orders

form, line or staff managers.

8/12/2019 Wentworth Ob 2

16/26

What is organisational culture?

The valuesand behavioursthat contributeto the unique social and psychologicalenvironmentofan organization.

Organizational culture includes an organization'sexpectations, experiences, philosophy, andvalues that hold ittogether, and is expressed in its self-image, inner workings, interactions withthe outside world, and future expectations. It is based on shared attitudes, beliefs, customs, andwritten and unwritten rulesthat have been developedover timeand are considered valid.

Also calledcorporate culture, it's shown in

(1) the ways the organization conductsits business, treats its employees, customers, and thewider community,

(2) the extent to which freedomis allowed in decision making, developingnew ideas, andpersonal expression,

(3) how powerand information flowthrough its hierarchy, and

(4) how committed employees are towards collective objectives.

http://www.businessdictionary.com/definition/values.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/contribute.htmlhttp://www.businessdictionary.com/definition/psychological.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/expectation.htmlhttp://www.businessdictionary.com/definition/experience.htmlhttp://www.businessdictionary.com/definition/information-technology-IT.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/working.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/customs.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/customs.htmlhttp://www.businessdictionary.com/definition/rule.htmlhttp://www.businessdictionary.com/definition/developed.htmlhttp://www.businessdictionary.com/definition/overtime.htmlhttp://www.businessdictionary.com/definition/valid.htmlhttp://www.businessdictionary.com/definition/call.htmlhttp://www.businessdictionary.com/definition/corporate-culture.htmlhttp://www.businessdictionary.com/definition/conduct.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/freedom.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/developer.htmlhttp://www.businessdictionary.com/definition/idea.htmlhttp://www.businessdictionary.com/definition/power.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/hierarchy.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/objective.htmlhttp://www.businessdictionary.com/definition/hierarchy.htmlhttp://www.businessdictionary.com/definition/information-flow.htmlhttp://www.businessdictionary.com/definition/power.htmlhttp://www.businessdictionary.com/definition/idea.htmlhttp://www.businessdictionary.com/definition/developer.htmlhttp://www.businessdictionary.com/definition/decision-making.htmlhttp://www.businessdictionary.com/definition/freedom.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/customer.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/conduct.htmlhttp://www.businessdictionary.com/definition/corporate-culture.htmlhttp://www.businessdictionary.com/definition/call.htmlhttp://www.businessdictionary.com/definition/valid.htmlhttp://www.businessdictionary.com/definition/overtime.htmlhttp://www.businessdictionary.com/definition/developed.htmlhttp://www.businessdictionary.com/definition/rule.htmlhttp://www.businessdictionary.com/definition/customs.htmlhttp://www.businessdictionary.com/definition/beliefs.htmlhttp://www.businessdictionary.com/definition/attitude.htmlhttp://www.businessdictionary.com/definition/working.htmlhttp://www.businessdictionary.com/definition/information-technology-IT.htmlhttp://www.businessdictionary.com/definition/experience.htmlhttp://www.businessdictionary.com/definition/expectation.htmlhttp://www.businessdictionary.com/definition/organization.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/psychological.htmlhttp://www.businessdictionary.com/definition/contribute.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/values.html

8/12/2019 Wentworth Ob 2

17/26

It affects the:

Organization's productivityand performance.

Providesguidelineson customer careand service, product qualityand safety,

Attendance and punctuality, and concernfor the environment.

It also extends to production-methods, marketingand advertisingpractices, and to new

productcreation.

Organizational culture is unique for every organization

and one of the hardest things to change.

http://www.businessdictionary.com/definition/productivity.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.businessdictionary.com/definition/care.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/product-quality.htmlhttp://www.businessdictionary.com/definition/safety.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/advertiser.htmlhttp://www.businessdictionary.com/definition/practice.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/change.htmlhttp://www.businessdictionary.com/definition/change.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/new-product-development.htmlhttp://www.businessdictionary.com/definition/practice.htmlhttp://www.businessdictionary.com/definition/advertiser.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/concern.htmlhttp://www.businessdictionary.com/definition/safety.htmlhttp://www.businessdictionary.com/definition/product-quality.htmlhttp://www.businessdictionary.com/definition/final-good-service.htmlhttp://www.businessdictionary.com/definition/care.htmlhttp://www.businessdictionary.com/definition/guideline.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/performance.htmlhttp://www.businessdictionary.com/definition/productivity.html

8/12/2019 Wentworth Ob 2

18/26

Examples of Corporate Culture

Although many facets of corporate culture exist, it's possible to group them into four

main culture types, according to research conducted by Quinn et al., over the past

few decades. Quinn proposed a model of four distinct culture types -- hierarchy,

market, clan and adhocracy -- that is known as the Competing Values Framework.

Each type has distinct advantages, disadvantages and characteristics.

8/12/2019 Wentworth Ob 2

19/26

Examples of Corporate Cultures..

Hierarchy Culture

A business that adheres to formal rules, regulations and bureaucracy isdemonstrating a hierarchy culture. This type of company typically has severaltraditional layers of management, and emphasis is placed on following the chain ofcommand. Power, status and position help the leaders within a hierarchy culture

manage their employees, and organized, efficient operations are a central part of theorganization's strategy and mission. It is prevalent among government organizationsand large companies, and many businesses demonstrate at least some elements ofthe hierarchy culture in day-to-day operations.

Market Culture

The market culture gained popularity among businesses in the 1960s. This culture is

similar to the hierarchy culture in its emphasis on organization and control. However,the market culture places great value on the external relationships with customers,suppliers and creditors, for example, believing that successful relationships willincrease the company's competitiveness. According to ongoing studies conducted by

Angelo Kinicki and his colleagues at the W. P. Carey School of Business at ArizonaState University, the market culture is the culture type most likely to yield the bestfinancial results.

8/12/2019 Wentworth Ob 2

20/26

Examples of Corporate Culture Cont..

Clan Culture

Businesses displaying the clan culture strongly emphasize internal collaboration.Acting more like a family than a structured corporation, companies with this type ofculture are concerned with teamwork and morale, and Kinicki determined that thisculture type produced the highest level of employee satisfaction. Clan corporationstypically have a flat internal structure, led by a single leader or owner who acts as apaternalistic or mentoring influence. This culture strongly emphasizes loyalty, acompanywide shared vision and goals, and ongoing employee development.

Adhocracy Culture

The adhocracy culture places most importance on flexibility and innovation.

Adaptability and quick reactions to the changing market, competition and externalenvironment is an integral component of corporate strategy in this type of business.Leadership in an adhocracy culture is demonstrated by entrepreneurship and risktaking. The emphasis is always on growth opportunities and employees areencouraged to experiment with new ideas. What might seem like chaos and disorderto the hierarchy culture is valued and embraced in the fast-moving adhocracy culture.

8/12/2019 Wentworth Ob 2

21/26

Performance in an Organisation

What is employee performance?

Thejobrelated activitiesexpected of a workerand how well those activities

were executed. Many businesspersonneldirectorsassess the employeeperformance of

each staff member on an annual or quarterlybasis in orderto help them identifysuggested areas for improvement.

http://www.businessdictionary.com/definition/job.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/executed.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/personnel.htmlhttp://www.businessdictionary.com/definition/director.htmlhttp://www.businessdictionary.com/definition/staff.htmlhttp://www.businessdictionary.com/definition/quarterly.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/improvement.htmlhttp://www.businessdictionary.com/definition/improvement.htmlhttp://www.businessdictionary.com/definition/order.htmlhttp://www.businessdictionary.com/definition/quarterly.htmlhttp://www.businessdictionary.com/definition/staff.htmlhttp://www.businessdictionary.com/definition/director.htmlhttp://www.businessdictionary.com/definition/personnel.htmlhttp://www.businessdictionary.com/definition/business.htmlhttp://www.businessdictionary.com/definition/executed.htmlhttp://www.businessdictionary.com/definition/worker.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/job.html

8/12/2019 Wentworth Ob 2

22/26

Factors affecting Employees Performance

An effective employee is a combination of a good skill set and a productive work

environment. Many factors affect employee performance that managers need to be

aware of and should work to improve at all times. To get the maximum performance from

employees, you need to provide them with the tools they need to succeed.

8/12/2019 Wentworth Ob 2

23/26

Managing Standards

Managerial standards can be a factor in motivating or de-motivating employees,according to technology employment resource Tech Republic. Managerial standardsshould be in line with the job duties outlined in the job description outlined by humanresources. The background of the employee, including their educational history, is

also outlined in a job description. Managers should keep their expectations in linewith the duties assigned to the employee. By expecting more from an employee thanthey were hired for, or than their background has prepared them for, can diminishemployee performance.

8/12/2019 Wentworth Ob 2

24/26

Motivation

To get the best performance from employees, there needs to be some sortof motivation beyond the weekly pay check. Motivation can come in the

form of financial incentives, the opportunity to get involved in companyprojects, a career path that leads to management and direct involvementfrom management into the daily tasks. Effective motivation can create aproductive work force, but a lack of motivating factors can leave employeessearching for reasons to give their maximum effort.

8/12/2019 Wentworth Ob 2

25/26

Commitment

Employees that feel as though the company has made a commitment toemployee success tend to perform better, according to Personnel SystemsAssociates. Commitment means offering a competitive rate of pay and

benefits package, offering assistance in paying for employee's highereducation costs, developing a regular training schedule that keepsemployees updated on company changes and gives pertinent informationfor employees to do their jobs and upgrading equipment to make sure thatemployees have the most efficient technology available to do their work.Commitment shown by the company is returned in the form of commitmentfrom employees.

8/12/2019 Wentworth Ob 2

26/26

Employee Evaluations

An effective employee evaluation is an interactive process where themanager gives his input on the employee's performance, and the employee

gets the chance to point out what she has learned throughout the year.Managers create a plan along with the employee for the coming year onhow the employee can develop and improve their performance.Comprehensive employee evaluations are important to the ongoingperformance of employees.