Define Organisational Structure.
The division of labour and patterns of coordination, communication, workflow and formal power that direct organisational activities.
What are the 2 fundamental requirements for all Organisational Structures?
- Division of Labour - distinct tasks
2. Coordination of that labour - employees are able to accomplish common goals.
What is the Division of Labour so important?
Job Specialisation = work efficiency.
- time: work cycles are shorter
- cost: training costs are reduced
- matches people with specific aptitudes or skills to the job for which they are best suited.
Why does an organisation’s ability to divide work among people depend on coordination?
If there was a lack of coordination, individual effort is wasted due to misalignment, duplication and mistiming of tasks.
List the coordinating mechanisms in organisations.
- Informal communication - sharing info on mutual tasks; forming common mental models to synchronise work activities.
- Formal hierarchy - assigning legitimate power to individuals, who then use this power to direct work processes and allocate resources.
- Standardisation - creating routine patterns of behaviour or output.
Explain informal communication.
- Direct Communication
- Liaison roles - Employees who are expected to communicate and share info with co-workers in other work units.
- Integrator roles - no authority; persuasion and commitment.
- Temporary teams - give employees more authority and opportunity to coordinate through informal communication.
Explain formal hierarchy.
- Direct Supervision
- Formal communication channels.
- Not as agile in coordination in complex and novel situations.
- Not fast or accurate as direct communication between employees.
- Managers are only able to closely supervise a limited number of employees.
- More managers = costly bureaucracy.
- Today’s workforce demands more autonomy over work and more involvement in company decisions.
Explain Standardisation.
- Standardised Process - Job descriptions and Procedures.
- Standardised Outputs - To ensure individuals and work units have clearly defined goals and output measures.
- Standardised Skills - Training.
What are the 4 elements that apply to every organisation?
- Span of Control
- Centralisation
- Formalisation
- Departmentalisation~
Explain Span of Control.
The number of people directly reporting to the next level in the hierarchy.
- Standardised skills.
- Routine tasks.
- Degree of interdependence.
Explain the difference between Tall versus Flat Structures.
- Big org - Taller hierarchy - Wider span of control.
* lower-quality and less timely info.
* higher overhead costs (Administrative)
* Employees usually feel less empowered and engaged in their work. - Small org- Flat hierarchy - Narrower span of control.
Define Centralisation.
Formal decision-making authority is held by a small group of people, typically those at the top of the organisational hierarchy.
Define Formalisation.
The degree to which organisations standardise behaviour through rules, procedures, formal training and related mechanisms.
- increase efficiency and compliance.
- undermine org learning and creativity.
- source of job dissatisfaction and work stress.
Define Mechanistic structure.
- Narrow span of control
- High centralisation
- High formalisation
Define Organic Structure.
- Wide span of control
- High decentralisation
- Low formalisation
Mechanistic vs Organic structure.s
- Mechanistic - operate better in stable environments because they rely on efficiency and routine behaviours.
- Organic - work better in rapidly changing (dynamic) environments because they are more flexible and responsive to changes.
- more compatible with organisational learning and high-performance workplaces bc they emphasise info sharing and an empowered workforce rather than hierarchy and status.
- Depends on how well employees have developed their roles and expertise.