Questions and Answers
What is the primary goal of organising in a business?
What is the definition of organisational structure?
What is a key requirement for organising?
What must management consider when matching an organisational structure to a company's needs?
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What is an important aspect of organising?
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What must be determined when organising?
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What does an organisational structure outline?
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What is the outcome of effective organising?
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What is the main purpose of organisational structure?
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What happens when there is no clear designation of activities and responsibilities in an organisation?
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What is the benefit of grouping related tasks together in specialised departments?
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What is job design?
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Who described a pin factory in his famous work 'The Wealth of Nations'?
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In Phase 1 of the evolution of specialisation, what is the primary role of the inventor?
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What is the primary role of the bookkeeper in Phase 2 of the evolution of specialisation?
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What is the characteristic of Phase 4 of the evolution of specialisation?
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What is the primary benefit of organising in an organisation?
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What is one of the advantages of specialisation?
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What is the main purpose of the Unity of Command Principle?
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What is the Scalar Principle?
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What is the Span of Control Principle?
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What is the purpose of establishing a Span of Control?
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Who attempted to quantify the problems with the Span of Control?
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What is a flat organisational structure?
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What is the effect of a flat organisational structure?
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Why do successful organisations tend to have flat structures?
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What is the result of having too many management layers?
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What is the primary consequence of broadening the span of control?
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What is a key factor in determining the best span of management?
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What type of authority belongs to managers who have the right to direct and control the activities of subordinates?
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What is the purpose of clear operating standards and rules in an organisation?
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What is the term for the flow of authority downwards through managers to their subordinates?
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What type of relationships are designated by dotted lines on an organisational chart?
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What is the result of a manager having a narrower span of control?
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What is the purpose of staff authority in an organisation?
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Study Notes
Introduction to Organising
- Organising involves developing a framework or organisational structure to indicate how people and resources should be deployed to achieve goals.
- Management must match the organisational structure to accommodate the particular needs of the company.
The Concept of Organisation Structure and Organising
- Organising involves combining people, capital, and raw materials to achieve the organisation's goals.
- Key aspects of organising:
- Mechanisms to implement the plan or strategy
- Activities and arrangements to determine what activities will be carried out
- Resources and who will perform the various activities
- Communication, cooperation, and coordination between people, departments, and sections
- Organisational structure:
- Indicates the work to be done and the connections between positions and tasks
- Lays out the reporting system and framework of the entire enterprise
- Utilises managerial techniques such as job design, departmentalisation, establishing chains of command, and assigning authority and coordination mechanisms
The Importance of Organising
- Organising is an integral part of the management process.
- Without organising, there cannot be successful implementation of plans due to the absence of a systematic allocation of resources.
- Organising entails:
- Detailed analysis of work to be done and resources to be used
- Systematising methods or procedures
- Dividing the total workload into activities that can be performed by an individual or group
- Promoting productive deployment and utilisation of resources
- Grouping related tasks together rationally in specialised departments
The Evolution of Specialisation as Businesses Grow
- Job design involves determining an employee's responsibilities in the organisation.
- Concept of specialisation:
- Dates back to Adam Smith's "The Wealth of Nations"
- Involves dividing work into smaller, manageable tasks to increase efficiency and productivity
- Phases of the evolution of specialisation as businesses grow:
- Phase 1: Inventor-designer, single entrepreneur
- Phase 2: Adding a bookkeeper to relieve administrative burden
- Phase 3: Employing specialists to run departments (Human Resources, Finance, Marketing, and Production)
- Phase 4: Expansion with multiple specialists and departments
- Reasons for specialisation:
- Individual ability: Concentrating on one task to acquire skill and efficiency
- Reduced transfer time: Minimising time lost when switching between tasks
- Specialised equipment: Using equipment designed for a particular task to increase efficiency
- Reduced training: Reducing the cost of training by focusing on a specific task
- Coordination: Improving communication and cooperation between tasks and departments
The Unity of Command Principle
- Establishes reporting lines among departments and positions in departments
- States that an employee should have only one superior to whom they are directly responsible
- Minimises confusion and conflict, ensuring clear direction and decision-making
The Scalar Principle
- Establishes a clear and unbroken chain of command linking every person in the organisation to someone at a higher level
- Helps employees know who to report to and who is responsible for decision-making
- Often incorporated into the chain of command, with the idea that "the buck stops here" – someone is ultimately responsible for every decision
Span of Control Principle
- Also known as span of management
- Establishes the number of subordinates who report directly to a manager
- Limited to ensure effective supervision and decision-making
- Factors determining the best span of management:
- Competence of the manager and employees
- Similarity or dissimilarity of tasks being supervised
- Incidence of new problems in the manager's department
- Extent of clear operating standards and rules
- Complexity of the subordinate's job
Line and Staff Structures
- Line authority: Managers who have the right to direct and control the activities of subordinates
- Staff authority: Those who advise, recommend, research, and offer technical expertise
- Line and staff relationships:
- Line managers have authority over subordinates and report to higher-level managers
- Staff specialists provide support and advice to line managers and report to higher-level managers
- Conflicts can arise between line and staff managers due to differences in authority and responsibility
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Description
Learn about the concepts of organising and organisation structure in management. Understand how to develop a framework to achieve company goals and match the organisational structure to the company's needs.