YEAR 12 BUSINESS MANAGEMENT

ORGANISATIONAL STRUCTURE, CORPORATE CULTURE & POLICY AND

PROCEDURES

Management structure

Senior

Middle Management

FLM

Organisational Structure

Structure refers to the way in which the parts of a system or object are organised and coordinated.Features of a structure include;•Division of labour•Departments or divisions•Chains of command, control and authority•Communication channels – two way, one way, lateral•Decision making – centralised or decentralised

Organisational chart

A chart depicts the structure as a diagram.EG.

Types of organisational structures

a) Hierarchical structure1. Employees arranged in layers2. Rigid lines of communication3. Identifiable positions4. Clear span of control5. Centralised decision making

b) BureaucracyComplex hierarchical structure.Features;• Division of labour• Downward communication• Centralised decision making• Defined hierarchy• Narrow span of control• Defined promotion & selection procedures

• Clear accountability• Clear lines of control

c) Flatter organisational structuresMove towards this type of structure.Features include;• Fewer levels of management• Employees involved in decision making• Fewer status distinctions• Increased training and multi skilling

d) Functional structuresEmployees are grouped together in departments. Some organisations use a combination of structures.

e) Geographic structuresBased on location eg. Bank with branches in each state.

f) Product-based structuresDepartments are grouped together according to the product they make or sell.

g) Customer-based structuresDepartments are based on the types of customers they deal with. Eg. car manufacturer may have – retail sales & fleet sales (business).

h) Network/ organic structureFlexible structure. Have a central core & then outsource other functions. Eg virtual corporation – Dick Smith Foods.

Core business

Supplier 1

Supplier 4

Supplier 3

Supplier 2

i) Matrix structure• This is based on a team or project structure.•Specialists from different functional areas join the team or project. •Often used across departments, it not usually a permanent structure.

Consequences of less hierarchical or flatter structures;Shorter communication paths, decentralised decision making, fewer layers, more consultative or participative style.

Senior

Dept FLM Team one Team two

Manager

Corporate culture

Corporate culture is the shared values, attitudes and beliefs shared by people within the organisation.

Can recognise culture by looking at;• Written policies & objectives• Physical environment• Structure & management style• Processes• Rituals & traditions• Language used

Differences in corporate culture

Differences can include;• Degree of innovation & risk taking• Attention to detail• People or task orientation• Team orientation• Age of the organisation• Diversity

How does a new employee learn about culture?

Stories & narratives• Rituals• Symbols• Behaviour of management• Recognition of employees• Communication & language used• Policies

Policy

A policy is a written statement detailing processes, procedures, rules & regulations. Procedures are a series of interrelated steps to implement the policy.Examples include; uniform, OH&S, anti bullying, equal opportunity, attendance, code of behaviour or code of conduct.

Policy development process

There are seven steps in the process.1. Issue identification – this is wrong we need to

fix it.2. Research & analysis – what exactly needs to

be changed & what are the possibilities?3. Stakeholder input – what do they think?4. Policy development – the new policy is

prepared.

5. Draft policy is posted – what exactly are the changes/ the new policy?

6. Policy approval – this is what the policy is going to be.

7. Evaluation – did the new policy assist in achieving organisational goals?