Management wk 2– Stakeholders, Hierarchies , Span of Control
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MSc – Agricultural Economics and Management Management MSc Economics and Management Management wk 2– Stakeholders, Hierarchies, Span of Control Richard Selby
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Management wk 2– Stakeholders, Hierarchies , Span of Control. Richard Selby. The stakeholders in a compan y means everyone who has an interest in the company . This includes: The owners Shareholders Banks or investment companies Other investors Employees Customers Suppliers - PowerPoint PPT Presentation
Transcript of Management wk 2– Stakeholders, Hierarchies , Span of Control
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Managementwk 2– Stakeholders, Hierarchies, Span of Control
Richard Selby
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
StakeholdersThe stakeholders in a company means everyone who
has an interest in the company. This includes:• The owners
– Shareholders– Banks or investment companies– Other investors
• Employees• Customers• Suppliers• Government
– Local/Regional/National/International (e.g. EU)
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Stakeholders are interested in the way a company is organised
So here are some possible ways…….
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Management HierarchiesManagingdirector
Research & development
(R&D)
Production(P)
Marketing(M)
Finance(F)
Product2
Product3
Product1
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Management HierarchiesManagingdirector
Research & development
(R&D)
Production(P)
Marketing(M)
Finance(F)
Human resourceManagement (HRM)
Product2
Product3
Product1
After Mullins’ “Management & organisational behaviour”
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Management HierarchiesManagingdirector
Product 1 Product 2 Product 3
HRM
R&D
After Mullins’ “Management & organisational behaviour”
P M F R&D P M FR&D P M F
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Management HierarchiesManagingdirector
Area A Area B Area C
HRM
R&D
After Mullins’ “Management & organisational behaviour”
P M F R&D P M FR&D P M F
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Flat” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3 4 5 6 7
Span of control = 7
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Flat” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3 4 5 6 7
Span of control = 7
Number of levels = 3
Level 1
Level 2
Level 3
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Flat” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3 4 5 6 7
7 5 6 5 7 5 6
Span of control = 7
Number of levels = 3
Number of positions = 49
Level 1
Level 2
Level 3
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Steep” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3
Span of control = 3
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Steep” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3
Span of control = 3
Number of levels = 4
Number of positions = 49
Level 1
Level 2
Level 3
Level 4
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
“Steep” hierarchical structure
After Mullins’ “Management & organisational behaviour”
1 2 3
Span of control = 3
Number of levels = 4
Number of positions = 49
Level 1
Level 2
Level 3
Level 4
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Which hierarchy is better?
• It depends! – What suits one company doesn’t necessarily
suit another
• Another consideration is how many people one person can properly manage– In some situations this may be 3 or 4 people,
while in another situation it could be 20 or 30!
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Which hierarchy is better?One factor may be to consider how many
relationships there are to manage:
Two people - two relationships•One, Boss to employee•Another, Employee to boss
Boss
Employee
MSc – Agricultural Economics and ManagementManagement
MSc Economics and Management
Which hierarchy is better?One way might be to consider how many
relationships there are to manage:
Three people - many relationships!•One, Boss to employee A•Another, Boss to employee B•Another, Employee A to boss•Another, Employee B to boss•Another, Boss to employees A & B as a group•Another, Employees A & B together to boss•Another, Boss and Employee A together to Employee B•Another, Employee B to boss and employee A together•Another, Boss and Employee B together to Employee A•Another, Employee A to boss and employee B together•And others …….. !
Boss
Employee A
Employee B
