Elements and Importance of Organisational Structure
Essay Title:
“The Importance and Elements of Organisational Structure”
By Peter Kambona: pkambona@gmail.com
Date: 18 February 2013
Table of Contents 1.0 Introduction 3 2.0 Importance of good organisation structure 3 2.1 Accountability 3 2.2 Revenue Growth 4 2.3 Product Development 4 3.0 Main Elements of Organisation Structure 4 3.1 Designing jobs 4 3.2 Creating a Hierarchy 5 3.3 Span of Control 5 3.4 Forming departments and work units 6 3.5 Coordinating and integrating activities 6 3.6 Differentiating between positions 7 4.0 Conclusion 7 5.0 References 8
1.0 Introduction
Jones, George and Hill (2011) define organisation structure as referring to the formal systems of task and reporting relationships that coordinate and motivate organisational members so that they work together to achieve organisational goals. There are six elements of organisational structure according to Barney and Griffin (1992:315) which include designing jobs, forming departments and work units, creating a hierarchy, distributing authority, coordinating and integrating activities, and differentiating between positions.
Thompson, Strickland and Gamble (2008:363-382) point out that the benefits of having a good organisation structure among others include enhanced accountability, revenue growth and shortened product development. This essay will discuss the importance of a good organisation structure and will also describe the main organisational structural elements.
2.0 Importance of good organisation structure
Organizational structure is made of the different elements that create a flow of communication and ideas throughout a company. The employee hierarchy helps to create a chain of command and responsibility. The communication structure of an organization helps ideas and information to flow from one department to the next. Each of these forms of organizational structure serve functions that allow the company to move
“The Importance and Elements of Organisational Structure”
By Peter Kambona: pkambona@gmail.com
Date: 18 February 2013
Table of Contents 1.0 Introduction 3 2.0 Importance of good organisation structure 3 2.1 Accountability 3 2.2 Revenue Growth 4 2.3 Product Development 4 3.0 Main Elements of Organisation Structure 4 3.1 Designing jobs 4 3.2 Creating a Hierarchy 5 3.3 Span of Control 5 3.4 Forming departments and work units 6 3.5 Coordinating and integrating activities 6 3.6 Differentiating between positions 7 4.0 Conclusion 7 5.0 References 8
1.0 Introduction
Jones, George and Hill (2011) define organisation structure as referring to the formal systems of task and reporting relationships that coordinate and motivate organisational members so that they work together to achieve organisational goals. There are six elements of organisational structure according to Barney and Griffin (1992:315) which include designing jobs, forming departments and work units, creating a hierarchy, distributing authority, coordinating and integrating activities, and differentiating between positions.
Thompson, Strickland and Gamble (2008:363-382) point out that the benefits of having a good organisation structure among others include enhanced accountability, revenue growth and shortened product development. This essay will discuss the importance of a good organisation structure and will also describe the main organisational structural elements.
2.0 Importance of good organisation structure
Organizational structure is made of the different elements that create a flow of communication and ideas throughout a company. The employee hierarchy helps to create a chain of command and responsibility. The communication structure of an organization helps ideas and information to flow from one department to the next. Each of these forms of organizational structure serve functions that allow the company to move
References: Barney, J. B. and Griffin, R.W. (1992). The Management of Organisations: Strategy, Structure, Behaviour. 1st Edition. Boston: Houghton Mifflin Company. Ivancevich, J.M., Konopaske, R. and Matteson, M.T. (2008). Organisational Behaviour and Management. 8th Edition. New York: McGraw-Hill Irwin. Jones, G.R., George, J.M. and Hill, C.W.L. (2011). Contemporary Management. 7th Edition. Boston: McGraw-Hill Irwin Thompson, A.A., Strickland III, A.J. and Gamble, J.E. (2008). 16th edition. Crafting and Executing Strategy: The Quest for Competitive Advantage. New York. McGraw-Hill Irwin.