Principles of Management IIA by ProfessorBurgerQueen
Chapter 8: Organisational Design
- Organisational design is defined as the formal arrangement of jobs within an
organisation
- It determines how an organisation is run, thereby determining its efficiency
- Formal structures are more stable than informal structures, but are limited to
the level of effectiveness when faced with new or unexpected situations
- Flexible structures are more adaptive to changing circumstances as they are
not fixated to the formal structure
Importance of Organisational Structure
- Assigning human and other resources to tasks
- Clarifying employee responsibilities, and how their efforts should mesh through the
organisational chart and lines of authority
- Establishing procedures for collecting and evaluating information to help managers
make decisions and solve problems
Elements of Organisational Structure
- Organisational structure determines the manner and extent to which roles, power,
and responsibilities are delegated, controlled, and coordinated. Therefore, the
following basic elements should be considered:
- Specialisation - identifying tasks and assigning them to trained employees
- Standardisation - uniform and consistent procedures the employees follow in
doing their job
- Coordination - comprises the formal and informal procedures and controls
that synchronise and integrate the activities and responsibilities of individuals,
teams, and departments in an organisation in order to attain set objectives
- Three basic principles apply:
- Unity of command
- Scalar principle
- Span of command principle
- If an organisation is to remain effective and successful, managers must continually
manage the division of work, and control various organisational functions
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ProfBurgerQueen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R60,00. You're not tied to anything after your purchase.
