Principles of Management IIA by ProfessorBurgerQueen
Chapter 8: Organisational Design
- Organisational design is defined as the formal arrangement of jobs within an
organisation
- It determines how an organisation is run, thereby determining its efficiency
- Formal structures are more stable than informal structures, but are limited to
the level of effectiveness when faced with new or unexpected situations
- Flexible structures are more adaptive to changing circumstances as they are
not fixated to the formal structure
Importance of Organisational Structure
- Assigning human and other resources to tasks
- Clarifying employee responsibilities, and how their efforts should mesh through the
organisational chart and lines of authority
- Establishing procedures for collecting and evaluating information to help managers
make decisions and solve problems
Elements of Organisational Structure
- Organisational structure determines the manner and extent to which roles, power,
and responsibilities are delegated, controlled, and coordinated. Therefore, the
following basic elements should be considered:
- Specialisation - identifying tasks and assigning them to trained employees
- Standardisation - uniform and consistent procedures the employees follow in
doing their job
- Coordination - comprises the formal and informal procedures and controls
that synchronise and integrate the activities and responsibilities of individuals,
teams, and departments in an organisation in order to attain set objectives
- Three basic principles apply:
- Unity of command
- Scalar principle
- Span of command principle
- If an organisation is to remain effective and successful, managers must continually
manage the division of work, and control various organisational functions
Chapter 8: Organisational Design
- Organisational design is defined as the formal arrangement of jobs within an
organisation
- It determines how an organisation is run, thereby determining its efficiency
- Formal structures are more stable than informal structures, but are limited to
the level of effectiveness when faced with new or unexpected situations
- Flexible structures are more adaptive to changing circumstances as they are
not fixated to the formal structure
Importance of Organisational Structure
- Assigning human and other resources to tasks
- Clarifying employee responsibilities, and how their efforts should mesh through the
organisational chart and lines of authority
- Establishing procedures for collecting and evaluating information to help managers
make decisions and solve problems
Elements of Organisational Structure
- Organisational structure determines the manner and extent to which roles, power,
and responsibilities are delegated, controlled, and coordinated. Therefore, the
following basic elements should be considered:
- Specialisation - identifying tasks and assigning them to trained employees
- Standardisation - uniform and consistent procedures the employees follow in
doing their job
- Coordination - comprises the formal and informal procedures and controls
that synchronise and integrate the activities and responsibilities of individuals,
teams, and departments in an organisation in order to attain set objectives
- Three basic principles apply:
- Unity of command
- Scalar principle
- Span of command principle
- If an organisation is to remain effective and successful, managers must continually
manage the division of work, and control various organisational functions
