Organisational Structure
When hiring large numbers of staff, organisation is important. Everyone within the company needs to understand their role. Managers need to organise their staff and keep them motivated
As a business grows in size and takes on more staff, managers need to make sure employees understand their role within the company. Organisation is the way a business is structured. One method of organisation is to set up departments covering the four main areas of business activity:
• finance
• human resources
• marketing
• operations
Organisation charts are diagrams that show the internal structure of the business. They make it easy to identify the specific roles and responsibilities of staff. They also show how different roles relate
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Foyle Food Group have organised their employees in different departments. Each employee is put into the section they are best suited to. Foyle Food Group has more of a hierarchical structure. The hierarchical structure evident in Foyle Food Group clearly defines employee’s role within the organisation and defines the nature of their relationship with other employees. It is a tall organisation with narrow spans of control, which gets wider as you move down the structure. The most important decisions in Foyle Food Group are taken by senior management. The hierarchical structure in the organisation ensures that everyone has a clearly defined set of duties and managers and the hierarchical environment encourages the use of specialist managers. Employees in Foyle Food Group are very loyal to their department within the organisation. The structure of Foyle Food Group provides motivation and opportunity for promotion and Kevin Tyre said it is a great company to build up through the ranks. In Foyle Food Group, the senior managers make up the board of directors and are responsible for establishing strategy and overall business direction, whilst middle managers have responsibility for a specific function such as finance or marketing. The supervisors in Foyle Food Group oversee the factory floor operatives. It is very important, especially for Foyle Campise as they have to deal with raw meat, it is important to section off the different sections to prevent any cross-contamination. It would be very serious if anything of this sort happened as customers could get very ill and lead to further action taking against the business. So it is very important that the business organises the premises properly in a way that this will not happen and also they will have to keep the premises exceptionally clean. The positions that the employees get depend on
Having organizational structure also entails having what is called an organization chart. An organization chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. Sherill believes you need an organization chart so that you are aware of who to report to. Where Sherill is currently employed, has not had anything set up this way in a few years. People are not sure who they are to report to and often report to whoever they feel like. She has seen a few employees leave the company for other jobs because they felt that their job lacked structure and it was difficult for them to work in a place like that.
Having the appropriate structure is vital for an organisation or business to meet its aims and objectives. A business may be structured by:
All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Explicit and implicit institutional rules and policies designed to provide a structure where various work roles and responsibilities are delegated, controlled and coordinated (investopedia, 2010). Employment services is set up as a flat management structure and say that all staff are accountable for everything they take part in. An example of this is that they have an operation manager who is responsible for the operation of the business. If they business was not to achieve the outcomes in the target, he is the one who is responsible. Chris believes
The functional structure provides employees, as well as their appropriate departments, with a clear objective and purpose for their work. As an example, employees within a marketing department know that their job is marketing and, as a result, those employees can focus on improving their marketing work and even specialize in a specific area of marketing. On the other hand, functional structure can create divisions between departments if a conflict develops between departments.
The process of setting up individual functional units of the business to do specialized tasks is called:
As seen in the figure, functional structure comprising top level management is embedded in levels 1-3. The geographical divisions are embedded in level 4. Product divisions are embedded in levels 5-7 and the frontline teams, the teams at level 8.
Effective organizational structures define how job tasks are subdivided, grouped, coordinated, and managed. Six key components of organizational structures include division of labor, departmentalization, chain of command, span of control, centralization, and formalization (Remme, Jones, Van der Heijden, & De Bono, 2008, p. 79). Each element influence how employees interact with each other to reach organizational goals. Different structures are common in similar organizations among high performing organizations (Reimann, 1974, p. 707). The most appropriate structure will depend on the unique needs and culture of the organization.
Show how the “team” fits together by creating a simple organizational chart for your business. Make sure that you organizational chart indicates who will work for each manager as well as each person’s job title.
An organization chart shows positions and job titles, lines of authority, and formal communication channels for a company.
Organization chart (Create and enhance the organizational structure and chart including all the key personnel)
To accomplish the goals outlined during the planning phase managers need to link employees, responsibilities, and resources together through organisation. Henri Fayol stated that “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.
Managing an organization involves putting a structure to the business so that managers can manage, supervise and coordinate its people and organization’s performance. A structure serves as a framework for the purpose of outlining clear operating guidelines in order to keep the organization functional. It defines the hierarchical lines of authority, establishing job roles and responsibilities, details communication channels to determine how information should flow within the organization. A well-fitted organizational structure will have positive impacts on both its employees’ and its performance.
The relationship between different organisational functions and how they link to organisational objectives and structure.