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Organisational Structures

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Introduction

Unit 1 Task 2 P3 P4 Most organisations start small and evolve. For example, when a small group of people decide to start a small business, involving 3 or 4 people, they usually each bring a set of skills and a great deal of enthusiasm to the business. There is no need for a formal organisational structure: communications are direct and problems are sorted as they arise. If the business grows the individuals come under more pressure and will possibly consider employing someone. If they do they may encounter small communication problems and the new comer needs to learn about her/his job and is unlikely to be as enthusiastic about work as the owners. If the business continues to grow they will encounter more pressure due to over work which they normally solve by employing more people. This increases communication and management problems. The company may also require more physical resources and eventually it will require more space. If the company moves to larger premises it will need to consider organisation to some extent, this is when organisation structures come in to play. An organisation that evolves can be made effective, providing its management are aware of the situation. Tal l Organisations are structured in a variety of different ways, dependant on their objectives. The structure of an organisation will determine the manner in which it operates and its performance. ...read more.

Middle

Division of labour is the basic principle underlying the assembly line in mass production systems. Span of Control refers to the total number of people which a manager or an administrator can effectively control and supervise. Therefore, span of control means the number of subordinates which a superior can effectively supervise. Every superior can supervise a limited number of employees. Therefore, every superior should be assigned or given an authority to handle only few subordinates. (Pictures sourced from www.tutor2u.net) A company organised with a functional structure, group?s people together into functional departments such as purchasing, accounts, production, sales, and marketing. These departments would normally have functional heads that may be called managers or directors depending on whether the function is represented at board level. Functional structures are perhaps the most common organisational model used by companies. There are many different functional areas a business may have, for example Production, Marketing, Accounts and Human Resources. Production is the basic activity of all industrial units. All other activities revolve around this activity. The end product of the production activity is the creation of goods and services for the satisfaction of human wants. The production activity is nothing but the step-by-step conversion of one form of materials into another either chemically or mechanically. The basic inputs of the production processes are man, machines, plant, services and methods. The Marketing Department plays a vital role to the sales department. ...read more.

Conclusion

There is a small span of control, and also there is a better chance for promotion. The disadvantages to a hierarchical structure are that all information is slow moving, there may also be poor communication between departments. Also workers may not feel involved in the business and they may have problems with feeling motivated to work. The type of communication used in a hierarchical structure will be more written communication. It will be written communication because the information will have a long way to go before it gets to the person. If it was verbal then when the message gets passed on it will change along the way. Children in need adopts a regional organisational structure, because it has managers all over the UK who will have a section of the business according to the location to oversee, then all the managers will report to the highest manager who will makes decisions from there. Each regional manager will have an equal span of control, which will make the organisation more controlled. Instructions are generally passed down from the highest manager down to the regional managers and then passed down from there until it reaches the needed person, just like a hierarchical organisational structure. The disadvantages of a regional organisational structure is that problems will take a significantly longer time than a smaller business, this is because Children in Need is a large business therefore if an instruction wanted to be passed down from the top of the organisational to the bottom, it would take significantly longer. D?Anna Ward Monday, 7 November 2011 ...read more.

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