Organisational Structure:
Organisational structure describes how tasks are formally separated, grouped & coordinated. Managers required addressing the subsequent six key elements while they design their organisation's structure:
1 work specialisation;
2 departmentalisation;
3 chain of command;
4 span of control;
5 centralisation and decentralisation; and
6 formalisation.
Their elaboration is presented in table.
Table: Key Elements in the Design of Organisational Structure
|
Elements
|
Description
|
|
Work Specialisation
|
Specifies degree to which tasks in the organisation are sub-divided into separate jobs. It is also known as the division of labour.
|
|
Departmentalisation
|
The primary on that jobs are grouped together.
|
|
Chain of Command
|
Refers to the unbroken line of authority which extends from the top of the organisation to the lowest echelon & clarifies who reports to whom.
|
|
Span of Control
|
Describes the number of subordinates a manager could efficiently & effectively direct.
|
|
Centralisation and
Decentralisation
|
Centralisation refers to the degree to that decision making is concentrated at a one point in the organisation. Decentralisation is the degree to that decision discretion is pushed down to lower level employees.
|
|
Formalisation
|
Specifies the degree to that jobs inside the organisation are standardised.
|