Chapter 15 - Organisational structure and design. Chapter learning objectives: describe the two fundamental requirements of organisational structures, summarise the three main forms of coordination, explain why companies can have a wider span of control than previously believed, discuss the advantages and disadvantages of centralisation and formalisation, contrast functional structures and divisional structures, outline the features and advantages of the matrix structure. | Organisational structure and design Chapter learning objectives Describe the two fundamental requirements of organisational structures. Summarise the three main forms of coordination. Explain why companies can have a wider span of control than previously believed. Discuss the advantages and disadvantages of centralisation and formalisation. Contrast functional structures and divisional structures. Outline the features and advantages of the matrix structure. Describe four features of team-based organisational structures. Describe the network structure. Summarise the contingencies of organisational design. Explain how organisational strategy relates to organisational structure. Tribal structure of Flight Centre Flight Centre has a unique ‘tribal’ organisational structure that facilitates easy replication and fuels organic growth. The Brisbane-based travel agency is organised into families, villages and tribal countries. © AAP Image/Dave Hunt Division of labour Subdivision of . | Organisational structure and design Chapter learning objectives Describe the two fundamental requirements of organisational structures. Summarise the three main forms of coordination. Explain why companies can have a wider span of control than previously believed. Discuss the advantages and disadvantages of centralisation and formalisation. Contrast functional structures and divisional structures. Outline the features and advantages of the matrix structure. Describe four features of team-based organisational structures. Describe the network structure. Summarise the contingencies of organisational design. Explain how organisational strategy relates to organisational structure. Tribal structure of Flight Centre Flight Centre has a unique ‘tribal’ organisational structure that facilitates easy replication and fuels organic growth. The Brisbane-based travel agency is organised into families, villages and tribal countries. © AAP Image/Dave Hunt Division of labour Subdivision of work into separate jobs assigned to different people Potentially increases work efficiency Necessary as company grows and work becomes more complex © AAP Image/Dave Hunt Forms of work coordination Informal communication sharing information high media-richness important in teams Formal hierarchy direct supervision common in larger firms problems costly, slow, less popular with young staff Standardisation formal instructions clear goals/outputs training/skills © AAP Image/Dave Hunt Organisational structure elements Span of control Centralisation Department- alisation Formalisation Elements of organisational structure Span of control Number of people directly reporting to the next level Assumes coordination through direct supervision Wider span of control possible when used with other coordinating methods subordinates’ tasks are similar tasks are routine Flatter structures require wider span (if same number of people in the firm) The decentralisation of Coca-Cola Coca-Cola
