Organizing

ORGANISING

Organisational structure

The purpose of organising is to efficiently achieve objectives, through the combined effort of individuals. An organisation’s structure is the way jobs are divided, grouped and coordinated within the organisation. Organisational design is the process by which managers design the formal organisation structure to ensure work activities achieve the organisation’s goals. Robbins et al. (2006, pp.324-333) discuss six design features:

• work specialisation

• departmentalisation

• chain of command

• span of control

• centralisation/decentralisation

• formalisation

The organisation structure that results will influence many of the characteristics of the manager’s job, for example, the amount of responsibility, the reporting relationships; that is, the number of personnel reporting directly to the manager, and the number of levels of the hierarchy directly beneath the manager. These decisions will impact directly on the performance of that area of the organisation for which the manager is responsible.

The formal structure of an organisation is depicted by the organisation chart, and from a chart the following structural characteristics can be identified:

• Division of labour. Each box on the chart represents a position in the organisation. Each position has job responsibilities. Its position in the hierarchy also indicates the amount of authority assigned to it

• Type of work performed. The title of each position is an indication of the nature of the work assigned to that job (for example, Sales Manager, Production Supervisor)

• Reporting relationships. The lines between the positions show who reports to whom in the hierarchy of authority (that is, the scalar chain is shown). They show the paths of directives and responsibilities, and who is accountable to whom

• Formal communication channels. The lines on the chart show the formal channels through which communications move through the organisation

• The major units....