week 8 - Organisational structure and change Topic 8...

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1 Organisational structure and change Topic 8 L E A R N I N G O U T L I N E 1. Defining organisational structure The 6 elements used in designing an organisation’s structure (specialisation, departmentalisation, chain of command, span of control, Contingency factors affecting structure (strategy, organisational size, technology, environmental uncertainty). 2. Common organisational designs Team-based, matrix, and project structures. 3. What is change? Organisational change and why it’s important to managers External and internal forces for change. Lewin’s three-step model of the change process. 4. Managing change Options managers have for changing an organisation’s structure. Six techniques for dealing with resistance to change. 1. DEFINING ORGANISATIONAL STRUCTURE Organising Arranging and structuring work to accomplish the organisation’s goals. The process of creating an organisation’s structure, which is the formal arrangement of jobs within an organisation. When managers develop or change an organisation’s structure they are engaged in organisational design. Organisational structure The formal arrangement of jobs within an organisation. The relatively stable and formal network of vertical and horizontal interconnections among jobs that constitute the organisation.
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Why is organisational structure necessary? Changing inputs into outputs Inpu Input Output Six key design elements Organisational design: A process involving decisions about six key elements: Work specialisation : The degree to which tasks are divided into separate jobs with each step completed by a different person. Departmentalisation : The degree to which work units are grouped according to functional similarity or similarity of work flow according to functional similarity or similarity of work flow. Chain of command : The continuous line of authority that extends from upper levels of an organisation to the lowest levels of the organisation and clarifies who reports to who. Span of control : The number of employees who can be effectively and efficiently supervised by a manager. Centralisation and decentralisation : The degree to which decision- making authority resides at the top of the organisational chart. Formalisation : The degree to which jobs within the organisation are standardised and the extent to which employee behavior is guided by rules and procedures. Work specialisation Work specialisation Degree to which tasks in the organisation are divided into separate jobs with each step completed by a different person. Dividing work activities into specific job tasks
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week 8 - Organisational structure and change Topic 8...

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