3.18 Competitive 3.18 Competitive organisational organisational

structuresstructures

Learning objectives

identify and explain different

organisational structures

explain how larger

businesses can adapt

organisational structures

evaluate the effectiveness of

adapting organisational

structures

What is an organisational What is an organisational structure?structure?

DefinitionThe relationship between

different people and functions in an organisation

– both vertically and horizontally

DefinitionThe relationship between

different people and functions in an organisation

– both vertically and horizontally

Recap your understanding of organisational structures by: listing the different types of organisational structures briefly explaining the key characteristics of each type of

structure

Task 1Task 1

Each pair will have a case study of organisational structure to read

Using the case study, feedback to the rest of the group by: briefly summarising the nature of the business identifying the organisational structure of the business explaining why this organisational structure is

appropriate for the business and the disadvantages of alternative structures

explaining why its organisational structure might impact on the business’ competitiveness and / or support the business aims and objectives

Task 2Task 2

Impact on competitiveness

Speed of strategic decision-making

Speed of strategic decision-making

Impact of layers of

management on costs

Impact of layers of

management on costs

Effectiveness of channels

of communicati

on

Effectiveness of channels

of communicati

on

Involvement of ‘right’ people in decision-making

Involvement of ‘right’ people in decision-making

In your table groups, read the case study on Wesley Hains’ card design business.

In your table groups identify some of the influences on organisational structures by discussing the task at the end of the case study

Task 3Task 3

In your table groups, read the case study on the Future Network plc

In your table groups identify how the organisational structure of the business has been changed and suggest pros and cons of the changes

Task 4Task 4

Adapting to improve competitiveness (1)

CentralisationWhere decision-making authority is

concentrated in the hands of a small number of senior managers at the top / centre of the

organisation

CentralisationWhere decision-making authority is

concentrated in the hands of a small number of senior managers at the top / centre of the

organisation

DecentralisationWhere the decision-making authority is

delegated to subordinates in the organisational structure

DecentralisationWhere the decision-making authority is

delegated to subordinates in the organisational structure

Centralisation: advantages

More control for senior

managersmore experienced

and skilled in decision-making

More control for senior

managersmore experienced

and skilled in decision-making

Decisions made for business as

a wholebetter allocation of

funds between departments

Decisions made for business as

a wholebetter allocation of

funds between departments

Strong leadership

Strong leadership

Standardised procedures

leads to economies of scale esp in

purchasing

Standardised procedures

leads to economies of scale esp in

purchasing

Decentralisation: advantages

Frees time for senior

managers

Frees time for senior

managers

Decisions made by those

closest to the issue

Decisions made by those

closest to the issue

Empowers and motivates workers

Empowers and motivates workers

Greater flexibility and

quicker response to

change

Greater flexibility and

quicker response to

change

Develops middle and

junior management

Develops middle and

junior management

Adapting to improve competitiveness (2)

DelayeringThe process of removing levels in the

hierarchical structure in order to create a leaner and more efficient organisations

DelayeringThe process of removing levels in the

hierarchical structure in order to create a leaner and more efficient organisations

Delayering: advantages

Reduction in indirect costs

through reduction in number of

permanent, full time staff

Reduction in indirect costs

through reduction in number of

permanent, full time staff

Better able to respond to changing market conditions

through delegation, better understanding of customer needs and

generation of ideas

Better able to respond to changing market conditions

through delegation, better understanding of customer needs and

generation of ideas

Improved motivation

through greater responsibility

Improved motivation

through greater responsibility

Delayering: disadvantages

Lower motivation

through reduced job security

Lower motivation

through reduced job security

Increased workload of managers

through increased span of control, possible increase in stress and absenteeism, greater need for

training adding to costs

Increased workload of managers

through increased span of control, possible increase in stress and absenteeism, greater need for

training adding to costs

Loss of valuable

knowledge and

experience

Loss of valuable

knowledge and

experience

Adapting to improve competitiveness (3)

Flexible workforcesIntroduction of core and peripheral workers,

outsourcing and homeworking

Flexible workforcesIntroduction of core and peripheral workers,

outsourcing and homeworking

In pairs, investigate the nature of one of the aspects of flexible workforces using textbooks and online resources Core and peripheral workers Outsourcing Homeworking

Produce a poster or factsheet or PowerPoint presentation which Outlines the nature of approach The advantages and disadvantages of the

approach A case study of the approach

Task 5Task 5