1. Lecture 3 Organisation Structure Prepared by: ANS First Prepared on: 11-01-06 Last Modified on: xx-xx-xx Quality checked by: HKP Copyright 2004 Asia Pacific Institute of Information Technology Introduction to Management BM007-3-1

12. Organisation Pyramid BOD CHIEF EXECUTIVE EXECUTIVE DIRECTORS MANAGERS EXECUTIVE AUTHORITY RESPONSIBILITY How are Organisations formed?

13. Organisation Chart (I) CEO/ PRESIDENT Human Resource Operations Security Recruitment Finance Research & Development Training Sales & Marketing Employee Relations Assistant

20. Exhibit 10–3 Contrasting Spans of Control © 2007 Prentice Hall, Inc. All rights reserved.

21. Span of Control Narrow Span of Control Manager Wide Span of Control Manager

22. Factors influencing span of control Narrow span Wider Span Complex work Simple work Uncertain environment Stable environment Less able subordinates Able subordinates More risk/danger Less risk/danger Less able manager Able manager

27. Production Finance R&D Accounting Sales & Marketing Human Resource Chief Executive Officer Functional Structure

28. Functional Organization Structures

29. Product Structure

30. Geographic Structure

31. Matrix Organization

32. Matrix Organizational Structure

33. Matrix organizations provide clear accountability within a specific business function and allow more efficient allocation of specialized skills across the entire business. By taking advantage of the shared services and skills and not having to develop and manage those skills themselves, the divisional or product line organizations can better focus on their core business objectives

41. TALL & FLAT STRUCTURES (continued) Flat Structure / Decentralised Wider span of control Shorter lines Of authority Tall Structure / Centralised Narrower span of control Taller Lines of authority

44. Key Design Questions and Answers for Designing the Proper Organization Structure

46. Q & A Question and Answer Session

47. Chapter 4 – Management Theories Next Session