responsibility as one goes down the structure.
Each person in the line has authority over those below, while being
responsible for making sure that the work handed down to them from their
immediate manager is completed. This applies even if the subordinate does
not personally undertake the actual work.
Advantages:
14. It is hierarchical structure which is simple to understand - staff
know precisely where they are in the structure, who can allocate work
to them and to whom they are responsible.
15. Managers have a clear understanding of the roles of people when
allocating work and spend less time monitoring work because
subordinates are not distracted or confused by instructions from other
sources.
16. A well-established line authority makes it possible for work to be
delegated further down the line - this can be valuable when superior
is seeking to widen the experience subordinates and develop their
management or supervisory skills.
Disadvantages:
17. It can involve a very long chain of command - instructions may take a
considerable time to filter from the top and impact on production,
which can be an important drawback if the organisation operates in a
rapidly changing market.
18. The flow of information back up a long chain to management may be a
lengthy process, causing a considerable delay before problems are
identified and tackled.
19. Individuals might only respond to requests from the superior, creating
inflexibility in the organisation which may be totally unnecessary if
co-operation with other managers does not effect working relations
with their superior.
Line and staff structure
A line and staff structure combines both a line authority and what is known
as staff authority. The term staff authority refers to those staff, usually
at a relatively senior level, whose are of work often involves dealing with
different departments. Someone with the relevant staff authority can
provide services and advises to those in the line of authority of other
departments. Managers with staff authority do not have the power to control
or give instructions, but rather the authority to deal with different
departments and to offer advice or support services in relation to problems
or exploiting new opportunities. However, since those with staff authority
are appointed because of their expertise, experience and good personal
skills, their advice, though not binding, is likely to be very persuasive.
Advantages:
20. Staff authority enables the expertise and experience of specialists to
be utilised more fully across the organisation.
21. By having access to all areas of the company, managers with staff
authority, communications between departments are at director level,
and so any inter-departmental communication has to pass up the chain
of command in one department to director level and then down the other
before it reaches the appropriate level.
22. Staff authority prevents individual departments from being too inward
looking - departments remain aware of their interdependence and their
role in seeking to achieve the organisation’s objectives.
Disadvantages:
There is a risk that staff authority may diminish the authority of
individuals in the line management, particularly if those with staff
functions acquire informal power and authority.
Matrix structure
In a matrix structure, a senior manager heads a division or team of
specialists drawn from different departments. These specialists are also
located in departments where they are part of a line authority; they are
therefore subject to two sources of authority.
In a matrix structure the simple chain of command found in a line structure
is replaced by a very large number of reporting relationships as
individuals report to managers in more than one department or function.
A matrix structure may be used for just some of an organisation’s
activities or it may cover the whole work of the organisation. It is often
used for organising and managing project teams, where people with
specialist skills, perhaps from different levels in the hierarchy, are
brought together to solve complex and urgent problems. Project teams may be
created to deal with issues which arise every now and again or they may be
an ongoing feature of the organisational structure.
Some aspects of marketing, however, may be handled by an ongoing project
team drawn from other departments, although the membership of the group may
change as different marketing issues arise.
Advantages:
23. It promotes increased co-ordination between departments because it
cuts across departmental boundaries - it encourages greater
flexibility and creativity, produced by the cross-fertilisation of
knowledge and skills.
24. It allows for the involvement of relatively junior staff, giving them
valuable experience in a wider field for the expression and
application of their particular skills.
25. Staff lower down a line structure can also gain valuable management
development in a project team, preparing them for promotion to higher
management positions.
26. The involvement of specialists from different areas reduces the risk
of resources
being wasted on projects with no future - in non-matrix structures an idea
originating
in, say, the marketing department may be pursued for a long time before it
comes to the attention of production which might find that it is
simply not practical.
Disadvantages:
. The existence of a matrix structure and project teams can lead to
confusion as individuals are involved in a large number of different
relationships creating a complex pattern of authority and
responsibility.
. A line manager may resent a subordinate receiving instructions from
managers based on other departments, especially if they are at a lower
level of management.
. This also raises questions as to who has priority over the
subordinate’s time and what information arising out of the work of the
project team should also be reported through the line authority. This
can be a potential source of conflict and relations may also be
strained if the subordinate suffers from divided loyalty.
Centralised structure
Organisations are centralised when the majority of decisions are taken by a
few people at the top of the organisation and little decision making is
delegated to those further down the organisational structure.
Even if many important decisions are delegated to subordinates, some
aspects of the business are always likely to remain totally under central
control. In general, senior managers or a centralised department takes
responsibilities for: major financial issues, wages and salaries, manpower
planning and personnel records, purchasing.
Advantages:
27. Senior management have more control of the business, eg budgets.
28. Procedures, such as ordering and purchasing, can be standardised
throughout the organisation, leading to economies of scale and lower
costs.
29. Senior managers should be more experienced and skilful in making
decisions. In theory, centralised decisions by senior people should be
of better quality than decentralised decisions made by others less
experienced.
30. In times of crisis, a business may need strong leadership by a central
group of senior managers.
31. Communication may improve if there are fewer decision makers.
Decentralised structure
Complete decentralisation would mean subordinates would have all the
authority to take decisions. It is unlikely that any business operates in
either of these ways. Even if authority is delegated to a subordinate, it
is usual for the manager to retain responsibility.
Some delegation is necessary in all firms because of the limits to the
amount of work senior managers can carry out. Tasks that might be delegated
include staff selection, quality control, customer relations and purchasing
and stock control. A greater degree of decentralisation - over and above
the minimum which is essential - has a number of advantages.
Advantages:
32. It empowers and motivates workers.
33. It reduces the stress and burdens of senior management. It also frees
time for managers to concentrate on more important tasks.
34. It provides subordinates with greater job satisfaction by giving them
more say in decision-making, which affects their work.
35. Subordinates may have a better knowledge of ‘local’ conditions
affecting their area of work. This should allow them to make more
informed, well-judged choices.
36. Delegation should allow greater flexibility and a quicker response to
changes. If problems do not have to be referred to senior managers,
decision-making will be quicker. Since decisions are quicker, they are
easier to change in the light of unforeseen circumstances which may
arise.
37. By allowing delegated authority, management at middle and junior
levels are groomed to take-over higher positions. They are given the
experience of decision making when carrying out delegated tasks.
Delegation is therefore important for management development.
Delayered structure
Delayering involves a business reducing its staff. The cuts are directed at
particular levels of a business, such as managerial posts. Delayering
involves removing some of these layers. This gives a flatter structure.
Delayering is likely to play a major role in a policy of decentralisation
as the removal of management layers allows authority for decision making to
be shifted to a lower level in the organisation.
Advantages:
. The savings made from laying off expensive managers. It may also lead
to better communication and a better motivated staff if they are
empowered and allowed to make their own decisions.
. However, remaining managers may become demoralised after delayering.
Also staff may become overburdened as they have to do more work. Fewer
layers may also mean less chance of promotion.
Management style
Management style refers to the approach that an organisation takes in
setting objectives for its employees and the way it manages relations
between superiors and subordinates.
Management or leadership styles can be categorised as:
Autocratic: A manager that adopts an autocratic management style takes
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