Organisation- Reporting structure

Lecture 3

Organisation = formal group of people with 1 or more shared goals“Organon” Greek => toolProductivity, effectiveness of

employees/entire systemAny flaw – detrimental to the

health of the organisationInformation, accountability,

authority = blood in the network of veins of an organisation

Types of reporting structure

• Hierarchical structure

• Fluid system

• Hierarchical structures within main structure

• Matrix structure

• Spider-web reporting structure

Hierarchical structure

Small number

of

people have power

Fluid system

Small systems operatingfreely within the whole company (subsidiaries)The ‘people/person’ culture exists for the ppl in it –

it’s in their own overriding interests to band together (family firm, university dep., music groups etc.)

Little formal organisation or structure, total flexibility, total interest in the work and in the mutual welfare (short period)

Hierarchical str-s within main str

Small hierarchies with the same

structure within the main hierarchical structure

(small number of people have power –

directors, managers of departments etc.)

Matrix structure

The Matrix represents the most fluid system – dots are individuals or groups

Can function on different levels according to the requirements of the task – project

Matrix structure

Pluses (loaning employees)

• Allows to share information more readily across task boundaries

• Allows for specialization that can increase depth of knowledge

Minuses:• Employees can get confused – conflicting

loyaltiesTo overcome: managers/parties must work closely

together

Spider-web structure

The most intricate/complicated structureThe power comes from

the centre, links on all levelsMinuses:• Bosses bypassed;• Power centres determine every detail• Chaos (nobody knows which authority they

have and over whom)• Accountability ( praise goes up, blame goes

down)• Sycophancy is rampant

Did you know? 1

• The Swiss food company Nestlé is the most foreign-orientated company in the world 87% of its assets, 97% of its workers and 98% of its sales are outside its borders

• Open-plan offices first came into use in the early 20th century in banks. In the 1950s Hewlett Packard then introduced open planning into its new buildings – a reflectionof its egalitarian culture

Did you know? 2

• The countries with the longest annual holidays are Austria and Belgium (30 days)

• Companies such as 3M, Canon, Intel and ABB = non-hierarchical structuresThey believe that ideas come from all levels of the company – ABB has been broken into 1,300 more or less independent entities; 3M consists of hundreds of project teams

Your ideal company 1

1. No. of employeesa)1-10 b)10-50 c) 50-100 d)100-500 e)500+2. Proportion of men to womena)10:1 b)5:1 c) 2:1 d)1:1 e)1:2 f) 1:5 g) 1:103. Age of majority of employeesa) 20-30 b) 30-39 c) 40-49 d) 50-594. Travel: a)None; b) once a month; c) 2-3 times a

year; d) once a week or more5. Job securitya) Good with average salary; b) poor but potentially

very high salary

Your ideal company 2

6. Work environmenta) Small private offices; b) large open-plan7. Motivation by:a) money; b) job satisfaction; c)other (decide)8. Decision takinga) Top down; b) bottom up; c) from all levels9. Teamworka) lots; b) some; c) none10. Salariesa) Kept a secret; b) public knowledge