ORGANISATIONAL STRUCTURE Falkné dr Bánó Klára BGF Külkereskedelmi

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ORGANISATIONAL STRUCTURE Falkné dr. Bánó Klára BGF Külkereskedelmi Főiskolai Kar Falkne. dr. Bano. Klara@kkfk. bgf. hu falk. cs@t-online. hu

ORGANIZATIONAL STRUCTURE Definitions ’The specification of the jobs to be done within a business and how those jobs relate to one another. ’ (Griffin and Ebert) ‘Structure is a means for attaining the objectives and goals of an organization. ’ /Drucker/

ORGANIZATIONAL STRUCTURE Definitions ’Structure is the pattern of relationships among positions in the organization and among members of the organization. The purpose of structure is the division of work among members of the organization, and the coordination of their activities so they are directed towards achieving the goals and objectives of the organization. ’ /Mullins/

An organizational chart

THE BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE JOB SPECIALIZATION – the use of individuals with specialized skills to perform specialized tasks within a business DEPARTMENTALIZATION – the grouping of jobs into logical units a. / Customer departmentalization – according to the type of customer likely to buy a given product

THE BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE b. / Product departmentalization – according to the specific goods produced c. / Geographic departmentalization – according to the area of the country or world supplied d. / Functional departmentalization – according to the group’s functions or activities e. / Process departmentalization – according to the production process used to make a specific type of goods

Most organisations use multiple bases of departmentalization

Division of work by major purpose or function

Division of work by product or service

Division of work by location

• RESPONSIBILITY – a duty to accomplish assigned tasks • AUTHORITY – the power to make decisions necessary to accomplish certain tasks • DELEGATION – the assignment of a task, responsibility and/or authority by a manager to a subordinate • ACCOUNTABILITY – the liability of a subordinate in the event of non-performance of a task

CENTRALISED ORGANISATION an organisational structure in which most decision-making authority is retained by upper-level management. Companies require multiple layers of management resulting in a tall organisational structure with narrow span of control.

DECENTRALISED ORGANISATION an organisational structure in which a great deal of decision-making authority is delegated to lower-level management. Companies require few layers of management resulting in a flat organisational structure with broad span of control. SPAN OF CONTROL refers to the number of subordinates who report directly to a given manager or supervisor.