Organisational Structure


Syllabus requires you to:


Organisations

Organisations are:

  • Goal orientated
    • people with a purpose
  • Social systems
    • people working in groups
  • Technical systems
    • people using knowledge, techniques and machines
  • The integration of structures activities
    • people co-ordinating their efforts

Organisations have:

  • Purpose
    • their objectives
  • Formal patterns of relationshiops
    • their structure
  • Division of labour
    • who does what
  • Formal sources of authority
    • who make decisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Organisational Resources

Three fundamental resources for an organisation are: Test your knowledge by answering Questions 1 to 10

What makes a successful company? Try Question 11


Focus on People

What role do people play in the success of an organisation?

Focus on the Organisation

Types of organisation - flat vs hierarchical

 

 

Level Flat Organisational Structure Hierarchical Organisational Structure Level
1
Top Management Top or Strategic Management
1
Functional / Divisional Management
2
2
Departmental / Functional Managers Departmental Management
3
Section / Project Heads
4
3
Section Heads / Supervisors Senior Supervisors / Foremen
5
Supervisors / Chargehands
6
4
Clerks / Operatives / General Personnel
7

 

 

Flat Organisational Structure Hierarchical Organisational Structure
Relatively small sized organisations (usually) Characteristic of large organisations
Few levels of authority and management Numerous levels of authority and management
Short chain of command Long chain of command
Broad span of control Narrow span of control
Tendency to suit mass production operations More formality, specialisation and standardisation

 


Workers and their information need

A heirarchical organisation can be organised into three levels, each with its own information system:

 

Level of Management Typical Responsibilities Information System Used
Strategic
  • Definition of Objectives, Policies for whole organisation
  • Long term planning
  • Large scale investment decisions
  • Middle management appointment
Management Information Systems (MIS)
Tactical
  • Establishment & monitoring of budgets
  • Acquisition of resources
  • Developing operational policies and objectives
  • Appointing staff
Information Systems
Operational
  • Effective use of existing facilities & resources withing budget constraints and prescribed objectives
  • Making routine day-to-day decisions
Production or Data Processing Systems

 

Stock Control of a Supermarket Warehouse:

 

Management level Information needs and uses:
Strategic
  • Correct summaries of activities at the tactical and operational level
  • Gathering and analysis of enviromental information (price trends, competitor's actions, political factors, etc.)
  • Setting long term policies about stock levels, price agreements and contracts with suppliers
Tactical
  • Accurate summaries of all operations affecting stock
  • Setting of key decision values (stock levels, reorder quantities, etc)
  • Setting of materials budgets within policy guidelines, orders, prices, etc
Operational
  • Physical movement and storage
  • Clear parts / material identification
  • Prompt & accurate recording of transactions
  • Clear guidelines on stock levels and order quantities

 



Data Processing Systems


Knowledge Work Systems


External influences on an organisation:

 




Now do the questions at the end of Chapter 36 of the text book