Organisation

- Reporting structure
Lecture 3

Organisation = formal group of

people with 1 or more shared goals
Organon Greek => tool
Productivity, effectiveness of
employees/entire system
Any flaw detrimental to the
health of the organisation
Information, 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 operating
freely within the whole
company (subsidiaries)
The people/person culture exists for the ppl in it
its 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
loyalties
To overcome: managers/parties must work closely
together

Spider-web structure
The most intricate/complicated structure
The power comes from
the centre, links on all levels
Minuses:
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 Nestl 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 structures
They 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 employees
a)1-10 b)10-50 c) 50-100 d)100-500 e)500+
2. Proportion of men to women
a)10:1 b)5:1 c) 2:1 d)1:1 e)1:2 f) 1:5 g) 1:10
3. Age of majority of employees
a) 20-30 b) 30-39 c) 40-49 d) 50-59
4. Travel: a)None; b) once a month; c) 2-3 times a
year; d) once a week or more
5. Job security
a) Good with average salary; b) poor but potentially
very high salary

Your ideal company 2

6. Work environment
a) Small private offices; b) large open-plan
7. Motivation by:
a) money; b) job satisfaction; c)other (decide)
8. Decision taking
a) Top down; b) bottom up; c) from all levels
9. Teamwork
a) lots; b) some; c) none
10. Salaries
a) Kept a secret; b) public knowledge