Organizational Structures Lecture Notes

Introduction

• Different organizations have distinct human resource structures.
• Main goal: understand organizational structures and their impacts.

Structure of the Class

• Part 1: Key terms foundational to understanding organizational structures.
• Part 2: Different types of organization charts.
• Part 3: Impact of the external environment on organizational structures.
• Part 4 (advanced): Detailed discussion on change.

Part 1: Key Terms

Delegation

• Definition: Assigning responsibilities from managers to subordinates.
• Advantages:
  • Managers focus on strategic decisions.
  • Subordinates gain meaningful tasks.

Span of Control

• Definition: Number of subordinates under a manager.
• Types:
  • Wide: Fewer layers, lower costs, effective communication.
  • Narrow: More layers, higher admin costs, potential division.

Levels of Hierarchy

• Definition: Organizational ranking system.
• Line Managers: In charge of subordinates.
• Traditional hierarchy can create clear roles but may lead to departmental division.

Chain of Command

• Definition: Order transmission system.
• Long vs. short chains affecting decision implementation speed.

Bureaucracy

• Definition: Management through complex rules and paperwork.
• Not suitable for creative industries due to its rigidity.

Centralization vs. Decentralization

• Centralization:
  • Quick decision-making, easier control.
  • Can demotivate and delay task execution.
• Decentralization:
  • Motivates with decision-making empowerment.
  • Higher admin costs, harder to control.

Delayering

• Definition: Removal of management levels.
• Pros: Reduced costs, improved communication.
• Cons: Employee insecurity, potential decision-making delays.

Matrix Structure

• Combines different departments for projects.
• Common in project-based work.

Part 2: Organization Charts

Purpose of Charts

• Visual representation of organizational structures.
• Shows accountability and responsibility in organizations.

Types by Height

• Tall/Vertical: Suitable for crisis management.
• Flat/Horizontal: Suitable for creative industries.

Types by Purpose

• Product: Organized by brands or products.
• Function: Traditional organization by business function.
• Region: Organized by geographical areas.

Part 3: External Environment Impact

Key Concept: Change

• Organizational changes due to external factors.
• Use of STEEPLE analysis for understanding external impacts.

Discussion Points

• Appropriateness of structures considering change.
• Consider factors like communication, leadership, and costs.

Part 4: Advanced Discussion on Change

Project-Based Organizations

• Teams work on projects rather than hierarchical levels.
• Common in IT, construction.

Shamrock Organizations

• Concept by Charles Handy.
• Divides staff into core, outsourced, and temporary workers.

Current Trends

• Shift towards flatter structures, project-based and shamrock organizations.
• Discuss implications of these transitions.

Conclusion

• Understanding organizational structures is critical for adapting to changes and external pressures.
• The lecture provides a comprehensive overview of key terms, types of structures, and their impacts.