Organisation Structure and Objectives

BUSINES
S&MANA
GEMENTby: Shadi A. Razak 1
Organisation
Structure and
Objectives

Objectives
• Understand the main features of an organisation
• Describe the main features of the different
organisations structures: Tall, Flat and
Matrix/Project
• Explain the importance of setting objectives in
managing an organisation
• Explain the purpose and role of mission and
vision statement in managing an organisation
by: Shadi A. Razak 2

Structure
• Organisation Definition
• Organisation Characteristics
• Organisation Structure
• Organisation Objectives
• Mission and Vision Statement

Organisation
DEFINITION

Organisation
DEFINITION
• Formal Organisation: the official structure of
command & control that exist between a
group of individuals working together towards
a shared goal

Organisation
DEFINITION

Organisation Characteristics
DEFINITION CHARACTERISTICS
• All modern organizations are alike
• Common features of organization's, as Max
Weber identified them:
– Structural features of organization's
– Standard operating procedures
– Organisational politics
– Organisational culture
– Organisational Environment

Organisation Characteristics
• There is no two organization's are identical
• Unique features of organization's, as Max
Weber identified them:
– Different organisational types
– Organisation's and environments
– Organisational ultimate goals
– Organisation's also serve different groups
– Organisation leadership

Organisation Structure
• Tall Organisation’s
– People become more specialized
– Rules put in place
– Have long chain of command
– Stable business environment
– Complain of working in large impersonal machine
– People feel alienation and bureaucracy
STRUCTURE

• Flat Organisation’s
– Have few levels of management
– Decentralized decision making
– Employee participation is encouraged
– Quickly identify & respond to changes
– Have more personal working relationships
environment
– Decision making can be slow and frustrating
– Confusion in responsibility and making decisions
STRUCTURE

DEFINITION CHARACTERISTICS STRUCTURE

• Matrix / Project Organisation’s
– Individuals works across teams and projects
– Can lead to confusion as well clashes
STRUCTURE

DEFINITION CHARACTERISTICS STRUCTURE

Organisation Objectives
• Organisations need objectives to:
– Identify what the business aim to achieve
– Give the business a sense of direction
– Provide focus to everyone in organisation
– Drive decision making and strategy planning
– Motivate employees
– Provide a means for measuring success
STRUCTURE OBJECTIVES

• Some common objectives:
– Survival
– Profit maximization
– Market share
– Market growth
– Corporate image
– Quality improvement

• Organization's have to set SMART objectives:
– Specific
– Measurable
– Achievable
– Relevant
– Time-constrained

• Objectives Hierarchy:
Mission
Objectives
Strategies
Tactics
Vision

• Objectives Hierarchy:
Objectives
Corporate Objectives
Departmental Objectives
Team Objectives
Individual
Objectives

• Objectives within an organisation can be:
– Strategic Objectives
– Tactical Objectives

• Strategic Objectives:
–They represent long–term objectives
–They are High risk objectives
–Set by Senior managers, board of directors
–Involves major capital investment
–Expensive and hard to alter once implemented

• Tactical Objectives:
–They represent short–term objectives
–They are low risk objectives
–Set by employees at the departmental level
–Involves few resources commitments
–Easy to change with little financial implication

Mission and Vision Statement
• Mission Statement : “Who we are and what we do”
–Concise description of what an organisation
currently doing
–Defines why organisation exist and key success
measures
–Prime audience is Middle management,
shareholders, and operational employees
–Over the years businesses build on it to establish
their core competences
STRUCTURE OBJECTIVES MISSION AND VISION

• Mission Statement : steps to create successful
mission statement:
–Identify the organisation USP
–Identify organisation key success measures
–Combine success measures and USP into tangible
& measurable goals
–Refine the goals into a concise and precise
statement

‘To protect, maintain and
improve the health of all
residents.’

• Vision Statement :
–Describes the desired future position of the
company in terms of values, such as market share
or profit target
–It gives business direction, inspire and motivate
employees to perform to their best
–It express how the organisation values its key
stakeholders (shareholders, customers, suppliers
& internal community)

• Vision Statement : steps to create successful vision
statement:
–Identify the values that underpin the business
–Focus on the aspects of operation that
stakeholders value more
–Prepare a statement that motivate and
strengthens the message to business stakeholders

‘Our vision is a world where
everyone is connected’

• Good mission & vision statements are:
–Brief;
–Memorable;
–and Practical
• They are normally combined to provide a statement
of the organisation purposes, goals and values.

• They serve a very important role Internally:
–Guide management thinking on strategic issues
–Provide stability during time of change
–Set performance Standards
–Provide employees with a common goal
–Inspire employees to work more productively
–Guide employee decision making

• They serve a very important role Externally:
–Create goodwill & attract similar-minded groups
to invest in the business
–Create closer & better links with organisation
stakeholders
–Promote the business to the general public
–Act as a marketing tool for the business

Summary
• Understood the theory and concept of
organisation
• Described the main features of the different
organisations structures: Tall, Flat and
Matrix/Project
• Explained the importance of setting objectives in
managing an organisation
• Explained the purpose and role of mission and
vision statement in managing an organisation
DEFINITION CHARACTERISTICS STRUCTURE OBJECTIVES MISSION AND VISION

Organisation Structure and Objectives

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