Analysing Organisation Structures
The job roles and functions in businesses vary tremendously. In many small businesses, such as local shops, staff are expected to help out in a variety of ways, especially at busy times. In other small businesses where specialists are employed, such as vets, accountants and solicitors, staff will have more defined roles because of their training and qualifications.
In all these cases the structure will probably be quite flat. Even a solicitor's practice may only have two or three levels, from partners to support staff.
In all these cases the structure will probably be quite flat. Even a solicitor's practice may only have two or three levels, from partners to support staff.
As an organisation grows in size, more staff are employed, usually at the lower levels. This increases the manager's span of control and often makes it more difficult to supervise everything properly. To help, someone may be promoted to be assistant or deputy manager. This introduces another level into the organisation. If the business continues to grow and more staff are employed, then team leaders or additional managers will be needed to supervise their work.
Gradually the work of each person becomes more defined. Rules will be needed to keep control and to ensure everyone is treated fairly over issues like holiday and time off. People will want to receive training so that they can progress to higher-level jobs. They will also expect their pay to be reviewed on a regular basis. This means the business owners need to check that they have a fair pay structure that reflects the difference between job levels.
There are dangers, though, in having too many levels.
- employees may consider the boss of the company has no idea how they feel or what they think
- information may become distorted as it passes down the levels
- if lots of people need to be consulted about everything, then it may take a long time to make some decisions
- important information may not reach the people who matter if senior managers only listen to their immediate subordinates
Passing on information activity
It is important to check that all the necessary functions are being carried out to achieve the firm's aims and objectives in the most cost effective manner and that all job roles contribute to their achievement. This may sometimes mean the business needs to be reorganised to take account of declining areas of work and new opportunities.
The Organisation
Directors determine strategy = what it does
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Set aims = what the business will achieve
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Decide objectives = steps to measure progress
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Managers agree targets for their functional areas, divisions or departments = contributions of different groups to achieve objectives
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Individual job roles = contributions of individual staff to achieve targets
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The structure of the organisation is such that all objectives can be achieved in a cost-effective way
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