Podcast
Questions and Answers
What does organisation structure primarily describe?
What does organisation structure primarily describe?
An organisation chart only represents the informal relationships in a company.
An organisation chart only represents the informal relationships in a company.
False (B)
What is the term used to describe the official structure documented by guidelines and procedures within an organisation?
What is the term used to describe the official structure documented by guidelines and procedures within an organisation?
Formal structure
Work specialisation breaks a job down into a number of steps where different individuals complete each step based on their _______.
Work specialisation breaks a job down into a number of steps where different individuals complete each step based on their _______.
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Which of the following is NOT a basic element of organisation structure?
Which of the following is NOT a basic element of organisation structure?
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Match the following terms with their definitions:
Match the following terms with their definitions:
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Unity of command refers to the principle that each employee should report to multiple managers.
Unity of command refers to the principle that each employee should report to multiple managers.
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Name one negative result of work specialisation.
Name one negative result of work specialisation.
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What describes the difference between authority and power?
What describes the difference between authority and power?
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Accountability can be delegated to other employees.
Accountability can be delegated to other employees.
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What is meant by 'span of control'?
What is meant by 'span of control'?
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In a __________ organisation, decision-making is centralized at the top of the hierarchy.
In a __________ organisation, decision-making is centralized at the top of the hierarchy.
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Match the following structure types with their characteristics:
Match the following structure types with their characteristics:
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Which statement about responsibility and accountability is true?
Which statement about responsibility and accountability is true?
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Mechanistic structures are typically best for complex, adaptable tasks.
Mechanistic structures are typically best for complex, adaptable tasks.
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Name one advantage of a decentralized organization.
Name one advantage of a decentralized organization.
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Study Notes
Organisation Structure
- The way work is divided, supervised, and coordinated within an organisation.
- Organisation structure is often visualised using an organisation chart.
- The chart shows departments, work positions and the reporting relationships between them.
Lecture Topics
- Definition of organisational structure
- Basic elements of organisational structure
- Basic types of organisational structure
Types of Structure
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Formal structure: The official structure of an organisation. It outlines how the organisation's activities are divided, supervised, and coordinated. This includes official guidelines, documents, and procedures.
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Informal structure: The unofficial but often critical working relationships between organisational members. This shows who communicates and interacts regularly, regardless of formal titles and relationships.
Basic Elements of Structure
- Work Specialisation: Breaking down a job into steps performed by separate individuals. This allows for specific skills to be used efficiently.
- Chain of Command: The continuous authority flowing from the highest to the lowest levels. This clarifies reporting structures and lines of authority. Unity of command means an employee reports to only one manager.
- Span of Control: The number of people directly reporting to a manager. The right span of control is needed for effective management.
- Centralisation vs Decentralisation: Centralisation concentrates decision-making at the top of the organisation, whereas decentralisation pushes decision-making to lower levels, closer to the problem.
- Departmentalisation: Structuring the organisation's activities into units. Managers oversee each unit.
Work Specialisation
- Jobs are broken down into steps for individuals to complete.
- Employees with different skills perform specific tasks.
- Efficient use of various skills increases performance.
- Drawbacks: Job boredom, difficulty replacing employees, and lower morale and productivity.
Chain of Command
- A continuous flow of authority from top to bottom establishing the reporting structure within an organisation.
- Early management writers stressed the concept of unity of command—an employee’s reporting to only one manager.
- Related concepts: Authority, Responsibility, Accountability, Delegation.
Authority
- The right that a person has in a specific role to make decisions, allocate resources, or give instructions. Authority comes from formal position, not the individual.
- Resistance arises when managers exceed their formal authority.
Responsibility
- An employee's duty to perform assigned activities and meet expectations.
Accountability
- Employees with authority report on their work to those above them in the chain of command.
Delegation
- Managers grant authority to subordinates for undertaking specific activities or decision-making.
Responsibility/Accountability/Delegation
- Responsibility can be delegated, but accountability cannot.
- Good managers credit others for successes and accept blame for failures related to delegation.
Authority vs Power
- Authority is linked to a position's formal powers and is independent of the individual.
- Power is the ability of an individual to influence decisions, regardless of their position.
Span of Control
- The number of subordinates directly reporting to a manager.
- The optimum span of control balances employee experience level and needed supervision.
- Span of control influences the organisation's structure (tall/flat)
- Direct supervision decreases with increasing employee experience and training.
Centralisation vs Decentralisation
- Centralised organisations focus decision-making at the top.
- Decentralisation devolves decision-making to lower levels.
Departmentalisation
- Dividing organisational activities into distinct units.
- Managers oversee each unit. (e.g., Functional departmentalisation).
Types of Structure
- Mechanistic structure: Rigid and stable. Best for simple, repetitive tasks. Characterised by high specialisation and centralisation.
- Organic structure: Flexible and highly adaptable. More successful with complex and unique tasks. Characterised by knowledge spread, limited rules and regulations, and horizontal communication.
- Organisations often use a combination of both structures.
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Description
Explore the fundamental concepts of organisational structure, including its definition, essential elements, and types. This quiz covers both formal and informal structures, as well as the breakdown of work specialisation and departmental relationships within organizations.
