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Lecture notes

Organisational Design

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A booklet of organisational design.

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Organisational structures

Definition:
The way the business is organised, to carry out its activities.

It may be illustrated in an organisational chart showing:
 Channels of communication
 Who has authority and responsibility
 The roles and titles of individuals within the org
 The people to whom individuals are accountable and those
for whom they are responsible.

Task:
Draw out an organisational chart of the school to illustrate the
above points.

Why do structures change so rapidly today?
Businesses change their structure rapidly and regularly.
Principle reason – pace of external change. Businesses must
ensure they can compete and thus need to keep costs to a
minimum. One way they may do this is by delayering –
eliminating a layer of the hierarchy - mainly middle managers.
This makes the structure flatter.

The implications of structure
If well designed:
 Quick decision making

 Keeps costs down

 Info flows easily

 More effective and efficient



If badly designed: Where do I fit in?
 Bureaucratic
 Slow to respond
 Demotivating for employees

1

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June 30, 2016
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