xxx) Design Organisational Structure

For designing organisational structure, need to answer following questions to identify the 6 key elements:

i. To what degree can tasks be subdivided into separate jobs? (work specialization)

ii. On what basis will jobs be grouped together? (departmentalisation)

iii. To whom do individuals and groups report? (chain of command)

iv. How many individuals can a manager efficiently and effectively direct? (span of control)

v. Where does decision-making authority lie? (centralization and decentralization)

vi. To what degree will the rules and regulations be used to direct staff? (formalization)

Using the answers to select the most suitable organisational structure from 6 basic types: simple structure, bureaucracy, matrix structure, team, virtual/networked and boundary-less. An organisation could a hybrid of these basic types.


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