Organization Structure

QUICKSTART FLOW CHART MAKERMeans bringing people and resources together to achieve a common objective. An organizational structure ir?t=vishaalslair 20&l=bil&camp=213689&creative=392969&o=1&a=B0009JGV1Yidentifies the different functions in an organization and sets out the power structure. This can be represented in an organizational chart.

The simplest organizational chartir?t=vishaalslair 20&l=btl&camp=213689&creative=392969&o=1&a=0899643302 is the functional structure, which divides a business according to management functions at senior, middle management and junior levels.

There are three layers of management in this chart: top, middle, and junior management.

  • It indicates where authority and responsibility have been delegated.
  • It illustrates the chain of command, i.e., who is answerable to whom.
  • It shows the managing director’s span of control (the number of people reporting directly to a manager).
Other relevant organisation structures that exist are
a)   Line and staff structure
b)   Matrix structure
c)    Shamrock structure
De-layering the organisation refers to the reduction in the number of layers in the management structure of the organisation. 
           This process has the following advantages:
  • It simplifies the structure.
  • It increases the speed and accuracy of internal communication, which means the organisation can respond more rapidly to change.
  • De-layering gives more power to subordinates. This increase in responsibility can release creativity and initiative.
  • It reduces the total wage bill paid to managers.
The disadvantages of de-layering are:
  • Senior managers have to deal with a wider span of control and an increased workload. This may cause stress.
  • Managers’ jobs may be lost through redundancies and this may lead to industrial relations problems.
  • Control becomes more difficult as the span of control increase.

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