organisational structure

Published by: mike 2010-03-15

explain the features of a formal structure?

Hi, The main features of an organizational formal structure are: Hierarchy, Chain of Command, Span of Control, Responsibility, and Authority Delegation. Formal organizational structures describe a system of business created in the middle 19th century by men like Robert Owen, Henry Poor, and M. Laughlin, who introduced the human element with theories of worker training, motivation and organizational structure. "By about 1900 we find managers trying to place their theories on a thoroughly scientific basis. Examples include Henry Towne's Science of management in the 1890s, Frederick Winslow Taylor's Scientific management (1911), Frank and Lillian Gilbreth's Applied motion study (1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the first college management text book in 1911." (http://en.wikipedia.org/wiki/Management ) Hierarchy: Business Hierarchy is a Hierarchical Organization whose goal is to make profit. Originally, Hierarchy meant, "rule by priests". Rooted Hierarchical is a term to describe a type of Business Hierarchy that features a root (known as the Big Boss) rather than a committee or Board of Directors. The Hierarchical system is common in human systems such as businesses, churches, armies and political governments. The structured hierarchical system has people "at the top", titled as "the Boss" or CEO, who are seen as having more power than those under them. Each level tends to grow in population as it decreases in the power the individuals who make up the level are perceived to have. The Formal Business Structure system benefits greatly by a clear understanding of the power base of the organization, though the system itself has been criticized greatly in recent years as no longer being the most profitable structure available. Chain of Command chains of command :"A system whereby authority passes down from the top through a series of executive positions or military ranks in which each is accountable to the one directly superior." The Chain of Command is the way a Hierarchical system is able to communicate effectively with itself. Each level in the Hierarchical system asks those above them for solutions, or reports status to those just above their own level, not to levels higher. Decisions and direction of the business are passed down from the higher areas in general terms, and each level of the hierarchical system adds levels of detail or complexity so that the directions begin to become instructions and performance tasks. A direct and clear cut chain of command works effectively, a cluttered or not well thought out chain of command tends to become the bureaucratic "Red Tape" often heard about in systems where no decision is able to be made in a timely manner, no matter how trivial. Span of Control: "...in business, the area of activity and number of duties and employees for which an individual or organization is responsible for; also, the number of employees that a manager can efficiently handle while improving effectiveness" Span of Control refers to the area in which a particular person or manager has direct influence over, and whose responsibility the area comes under. As a Span of Control grows, the manager is brought up in levels on the Hierarchical system. Responsibility Responsibility in the formal business structure refers to areas of Responsibility and is closely related to Span of Control. When a task or direction is given, a person or group is given responsibility over the completion of that task. With responsibility generally comes the delegation of authority as well, but in some less than efficient systems, this is not the case. The practice of placement of Responsibility without granting the delegation of Authority is often termed the creation of a "Scape Goat" Authority Delegation Authority Delegation is closely related to the areas of Responsibility. The delegation of authority is often used as a tool to bring in the creative power of entrepreneurship by allowing a large company to think small. To do this a person must have the authority to take initiative and move in a direction which appears best to them, without having to answer to the chain of command at every step. Reference and Source links Strategic management http://en.wikipedia.org/wiki/Strategic_management Hierarchy - Wikipedia http://en.wikipedia.org/wiki/Hierarchy Span of Control - Wikipedia http://en.wikipedia.org/wiki/Span_of_control Seb's Web of Knowledge and Know-How http://www.iro.umontreal.ca/~paquetse/knoweb/business_hierarchy.html Dictionary http://dictionary.reference.com/search?q=Chain+of+Command Dictionary http://dictionary.reference.com/search?q=Span+of+Control Scapegoat http://en.wikipedia.org/wiki/Scapegoat If you require more research in this area please use the Clarification Request Function. thanks, webadept-ga

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