Need help with a business question about an organizational structure

timer Asked: Dec 24th, 2015
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Question Description

Key questions to ask when designing an effective organizational structure include:

  1. How many individuals can a manager direct efficiently and effectively?
  2. Where should decision-making authority lie - entirely with the manager or more as collaboration between manager and staff?

Tutor Answer

School: University of Maryland

Thank you for the opportunity to help you with your question!

1.  How many individuals can a manager direct efficiently and effectively?

People that an administrator can oversee adequately and inadequately is administered by the compass of control. Compass of control alludes to the quantity of subordinates that can be overseen successfully and proficiently by administrators or chiefs in an association. Normally, compass of control is either restricted or wide bringing about a compliment or more progressive hierarchical structure. Every sort has its inalienable points of interest and impediments.

a)  Narrow span of control


  Have more levels of reporting in the association, bringing about a more various leveled association

  Supervisors can invest energy with workers and regulate them all the more nearly

·  Creates more improvement, development, and progression opportunity


·  More costly (high cost of administration staff, office, and so forth.)

·  More supervisory inclusion in work could prompt less strengthening and appointment and more  micromanagement

·  Tends to bring about correspondence troubles and exorbitant separation between the top and base levels in the association

b) Wide Span of Control


  Have less levels of reporting in the association, bringing about a more adaptable, compliment association

  Ideal for managers for the most part in charge of noting inquiries and tackling workers issues

  Encourages giving so as to strengthen of workers more obligation, appointment and choice


  Tends to bring about more noteworthy correspondence efficiencies and successive presentation to the top level of the association

  May lead to over-burden managers if representatives require much assignment heading, backing, and supervision

  May not give sufficient backing to representatives prompting diminished confidence or  work  fulfillment

b)  Optimal span of control

Optimum span of control depend on various factors including:

•  Organization size – The measure of an association incredibly impacts compass of control. Bigger associations have a tendency to have more extensive compasses of control than littler associations.

•  Nature of an association – The way of life of an association can impact compass of control; a more casual, adaptable society is predictable with more extensive compass of control; while a progressive society is steady with tight compass of control. It is vital to consider the present and coveted society of the association when deciding compass of control.

•  Nature of occupation – Routine and low many-sided quality employments/assignments require less supervision than occupations that are naturally entangled, approximately characterized and require regular choice making. Consider a more extensive compass of control for occupations requiring less supervision and a smaller compass of control for more perplexing and dubious employments.

•  Skills and skills of administrator – More experienced bosses or chiefs can for the most part have more extensive compasses of control than less experienced managers. It's best to additionally consider to what degree bosses and supervisors are in charge of specialized parts of the occupation (non-administrative obligations).

•  Employees aptitudes and capacities – Less experienced representatives require all the more preparing, course, and appointment (closer supervision, thin compass of control); while more experienced workers requires less preparing, bearing, and designation (less supervision, more extensive compass of control).

•  Type of association in the middle of directors and representatives – More incessant connection/supervision is normal for a smaller compass of control. Less cooperation, for example, administrators essentially simply noting addresses and tackling worker issues, is normal for a more extensive compass of control. The kind of connection you need your administrators and directors to take part in with their representatives ought to be predictable with the compass of given

2.  Where should decision-making authority lie - entirely with the manager or more as collaboration between manager and staff?

The decision making authority should be governed by the management models that elaborates the relationships between the managers and the staff.

a)  Classic hierarchy

In this model, all initiative and control originates from the top (commonly, on account of a non-profit association, from a chief or Board seat). As a rule, there are layers in the association, and every layer is capable to the one above it and responsible for the one underneath it.

There are points of interest and inconveniences to all administration frameworks, yet much of the time, particularly for grass roots and group based associations, this is the minimum proper. The top-down nature of the structure often implies that the inventiveness and thoughts of those at lower levels are lost. It additionally supports securing one's position and genuine or envisioned benefits, and disheartens activity (individuals, with the exception of at the most noteworthy administration levels, are unrealistic to take a stab at anything new because of a paranoid fear of accomplishing something incorrectly). The adequacy, vision, and working of the association depend totally on the person in control: in the event that she is unoriginal, inflexible, a domineering jerk, contradicted to all change, or just a not as much as perfect pioneer, the association presumably won't prosper.

b)  Democratic hierarchy

Administration still originates from the top in this model, yet administrators at all levels counsel with those influenced before deciding. Everybody's conclusion is requested, and thoughts are required to originate from all levels of the association. There is an endeavor to give everybody the force important to control the things she's in charge of, and to carry out her employment as successfully as could reasonably be expected.

All staff in a fair chain of command, from chief to assistant, as a rule regard each other as equivalents. Staff fellowships often cross administration lines (irregular in a customary progressive association) and, while individuals have distinctive obligations, that doesn't as a matter of course mean contrasts in status inside of the association.

c)  Collaborative management

In this course of action, while individuals still involve diverse positions in the authoritative structure, administration is a consequence of joint effort. Significant choices, often including those deciding such matters as compensation levels, are made together by all staff. The authoritative vision and mission is often additionally worked out among all staff, and may be under consistent talk and amendment. In a community oriented association, everybody has a say toward the association.

Community oriented administration is hard to put into operation. Similarly as with a majority rule chain of importance, everybody must have the power important to do his occupation; yet that additionally must be adjusted with the requirement for info when a choice influences the association overall, or concerns its essential reasoning. Compelling shared administration calls for everybody being all around educated about issues influencing the workings of the association, and calls additionally for an extensive responsibility with respect to those whose occupations are not authoritative to attempt to comprehend and stay current on regulatory issues. Maybe, most imperative, cooperation requests that individuals leave behind their self-images, construct their considerations in light of the benefit of the association and the headway of its main goal.

d)  Collective management

Aggregate administration is greatly hard to work effectively. Cooperatives can work in distinctive ways, however the crucial thought is that the group all in all claims the association, and subsequently everybody has an equivalent voice in everything doing with the association. Choices are often made by accord, which implies everybody (and "everybody" might allude to all staff, or to all staff and members, or even to some bigger gathering) needs to concur before anything can be followed up on. Managerial parts might spin among a few or all individuals from the aggregate, or might essentially not exist, in which case everybody offers in finishing authoritative ridiculously up.

Please let me know if you need any clarification. I'm always happy to answer your questions.

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