Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

3.18 competitive organisational structures

1,661 views

Published on

Published in: Business, Education
  • Be the first to comment

  • Be the first to like this

3.18 competitive organisational structures

  1. 1. 3.18 Competitive organisational structures
  2. 2. identify and explain different organisational structures explain how larger businesses can adapt organisational structures Learning objectives evaluate the effectiveness of adapting organisational structures
  3. 3. What is an organisational structure? Definition Definition The relationship between The relationship between different people and functions different people and functions in an organisation – both in an organisation – both vertically and horizontally vertically and horizontally
  4. 4. Task 1  Recap your understanding of organisational structures by:  listing the different types of organisational structures  briefly explaining the key characteristics of each type of structure
  5. 5. Task 2  Each pair will have a case study of organisational structure to read  Using the case study, feedback to the rest of the group by:  briefly summarising the nature of the business  identifying the organisational structure of the business  explaining why this organisational structure is appropriate for the business and the disadvantages of alternative structures  explaining why its organisational structure might impact on the business’ competitiveness and / or support the business aims and objectives
  6. 6. Speed of Speed of strategic strategic decisiondecisionmaking making Impact of Impact of layers of layers of management on management on costs costs Impact on competitiveness Involvement of Involvement of ‘right’ people in ‘right’ people in decision-making decision-making Effectiveness Effectiveness of channels of of channels of communication communication
  7. 7. Task 3  In your table groups, read the case study on Wesley Hains’ card design business.  In your table groups identify some of the influences on organisational structures by discussing the task at the end of the case study
  8. 8. Task 4  In your table groups, read the case study on the Future Network plc  In your table groups identify how the organisational structure of the business has been changed and suggest pros and cons of the changes
  9. 9. Centralisation Centralisation Where decision-making authority is Where decision-making authority is concentrated in the hands of a small number of concentrated in the hands of a small number of senior managers at the top / centre of the senior managers at the top / centre of the organisation organisation Adapting to improve competitiveness (1) Decentralisation Decentralisation Where the decision-making authority is Where the decision-making authority is delegated to subordinates in the delegated to subordinates in the organisational structure organisational structure
  10. 10. More control for More control for senior managers senior managers more experienced and more experienced and skilled in decisionskilled in decisionmaking making Strong Strong leadership leadership Centralisation: advantages Standardised Standardised procedures procedures leads to economies leads to economies of scale esp in of scale esp in purchasing purchasing Decisions made Decisions made for business as a for business as a whole whole better allocation of better allocation of funds between funds between departments departments
  11. 11. Frees time for Frees time for senior managers senior managers Develops middle Develops middle and junior and junior management management Empowers and Empowers and motivates workers motivates workers Decentralisation: advantages Greater Greater flexibility and flexibility and quicker quicker response to response to change change Decisions made Decisions made by those closest by those closest to the issue to the issue
  12. 12. Delayering Delayering The process of removing levels in the The process of removing levels in the hierarchical structure in order to create a hierarchical structure in order to create a leaner and more efficient organisations leaner and more efficient organisations Adapting to improve competitiveness (2)
  13. 13. Reduction in Reduction in indirect costs indirect costs through reduction in through reduction in number of permanent, number of permanent, full time staff full time staff Improved Improved motivation motivation through greater through greater responsibility responsibility Delayering: advantages Better able to respond to Better able to respond to changing market conditions changing market conditions through delegation, better through delegation, better understanding of customer needs and understanding of customer needs and generation of ideas generation of ideas
  14. 14. Lower motivation Lower motivation through reduced job through reduced job security security Loss of Loss of valuable valuable knowledge and knowledge and experience experience Delayering: disadvantages Increased workload of Increased workload of managers managers through increased span of control, through increased span of control, possible increase in stress and possible increase in stress and absenteeism, greater need for training absenteeism, greater need for training adding to costs adding to costs
  15. 15. Flexible workforces Flexible workforces Introduction of core and peripheral workers, Introduction of core and peripheral workers, outsourcing and homeworking outsourcing and homeworking Adapting to improve competitiveness (3)
  16. 16. Task 5  In pairs, investigate the nature of one of the aspects of flexible workforces using textbooks and online resources  Core and peripheral workers  Outsourcing  Homeworking  Produce a poster or factsheet or PowerPoint presentation which  Outlines the nature of approach  The advantages and disadvantages of the approach  A case study of the approach

×