Trends in Organizational Structure

By: Denny Prasetya

Learning Goals I will be able to explain the different trends in the organizational structure.

I will be able to explain the role that the manager has to take when dealing with these trends.

I will be able to explain the differences between wide and narrow span of control.

I will be able to explain the differences between delegation and decentralization.

Trends

Wider Span of Control

More Delegation

Decentralization

Wider Span of ControlA span of control the number of people who report to one

manager in a hierarchy

Narrow Span of Control

Tall Structure

Advantages of Narrow Span of Control Have more levels of reporting in the organization, resulting in a more

hierarchical organization

Supervisors can spend time with employees and supervise them more closely

Creates more development, growth, and advancement opportunities

Disadvantages of Narrow Span of Control More Costly

More supervisory involvement in work could lead to less empowerment and more micromanagement

Tends to result in communication difficulties and excessive distance between the top and bottom levels in the organization.

Wide Span of Control

Flat Structure

Advantages of Wide Span of Control Less layers of management to pass a message through

It costs less money

Encourages empowerment of employees by giving more responsibility, delegation and decision-making power to them.

Disadvantage of Wide Span of Control Less supervision

Role of Manager on a Span of Control Managers receive report from their subordinate

More DelegationDelegation Giving authority to employees to do a given task

Benefits for the Manager Managers have more time to do important tasks, letting subordinate do

smaller tasks

Managers are less likely to make mistakes if tasks are done by specialist employees

The work will still be done even if the manager absence

Improve manager’s reputation as being a trusting manager

Benefits for the Employee Employees feel more important and trusted

Helps train workers, giving them better career opportunities

Decreases delays

Increases and improves motivation and job satisfaction

Role of Manager on Delegation Managers ask their employees to do a task

Why some managers don’t want to delegate? Managers are afraid that their employees will fail

Managers want total control

Managers are scared that the subordinate will do tasks better than them, making them feel insecure

Decentralization Delegating important decisions to lower division

Centralization Decision-making power occurs at the head office of a company.

Forms of Decentralization Functional Decentralization

Federal Decentralization

Regional Decentralization

Decentralization by project

Role of Manager on Decentralization Managers in each departments make decisions.

Is complete decentralization a good idea?

Differences between Delegation and Decentralization1. Meaning

2. How it takes place

3. Narrow and Wide

4. Control

5. Essential and Optional

Quiz Time!Why some managers don’t want to delegate ? What is the difference between decentralization and centralization ?

What is delegation ?

Class Activity Group 1: Draw a narrow span of control structure and put your names on

each division.

Group 2: Draw a wide span of control structure and put your names on each division.

MAKE SURE YOU PUT ALL YOUR FRIENDS’ NAME ON THE STRUCTURE!

Work Cited "Business Studies Notes For IGCSE." : Chapter 10: Organisational Structure. N.p., 16 Aug. 2012. Web. 14 Dec.

2013.

Lewis, Sally Foley. "Benefits of Delegation | Sally Foley-Lewis." Sally FoleyLewis RSS. N.p., n.d. Web. 14 Dec. 2013.

Joseph, Chris. "The Advantages of a Decentralized Organizational Structure." Small Business. N.p., 2013. Web. 14 Dec. 2013.

Akrani, Gaurav. "Difference Between Delegation of Authority and Decentralisation." Difference Between Delegation of Authority and Decentralisation. N.p., 27 May 2011. Web. 14 Dec. 2013.

Riley, Jim. "Organisation - Span of Control." Organisation - Span of Control. N.p., 23 Sept. 2012. Web. 14 Dec. 2013.

"Defining Span of Control." Where Great Workplaces Start. Wordpress.com, 17 Feb. 2010. Web. 14 Dec. 2013.

Thank you