Monday, 18 October 2021
Organising, organisational structure and behaviour
Learning outcomes:
•Outline why the structure of an organisation affects performance
•Give examples of management choices about dividing and coordinating work,
with their likely advantages and disadvantages
•Describe functional and divisional approaches to structure
•Explain the matrix approach to structure
•Describe the contemporary team and virtual network structures and why they are
being adopted by organisations
•Identify how structure can be used to achieve an organisation’s strategic goals
Valve Software Corporation case study
• Different organisation implement different organisation structures. E.g. some rigid,
some flexible - "no structure” structure. E.g. :
1
, Monday, 18 October 2021
Organising
This is the deployment of organisational resources to achieve strategic
goals.
• This is important for any type of organisation; e.g. large multinational company,
or a small family owned business.
• We need to have clear:
- Division of labour
- Lines of authority
- Coordination
• Organisation is both important for the original design of an organisation structure,
but also for organisations that wish to change their existing structure.
• Organisation follows from the concept of planning.
Depending on size, culture, activity and history.
Size: large multinational organisations have lots of branches and subdivisions -
each with its own hierarchy, e.g. one person is head of UK organisation, but not top
overall.
Culture: more autocratic tend to have taller structures, more democratic have flatter
structure.
Activity: nature of business influences structure: more creative flatter structure to
encourage ideas to be created and developed as people feel more equal.
History: structures evolve and are difficult to reorganise. Therefore roles important
in the past may remain in the structure even though they aren’t relevant anymore.
Overall, successful organisations grow and employ more people to cope with extra
work. Overtime, these roles may not remain vital, so constantly needs changes.
2
Organising, organisational structure and behaviour
Learning outcomes:
•Outline why the structure of an organisation affects performance
•Give examples of management choices about dividing and coordinating work,
with their likely advantages and disadvantages
•Describe functional and divisional approaches to structure
•Explain the matrix approach to structure
•Describe the contemporary team and virtual network structures and why they are
being adopted by organisations
•Identify how structure can be used to achieve an organisation’s strategic goals
Valve Software Corporation case study
• Different organisation implement different organisation structures. E.g. some rigid,
some flexible - "no structure” structure. E.g. :
1
, Monday, 18 October 2021
Organising
This is the deployment of organisational resources to achieve strategic
goals.
• This is important for any type of organisation; e.g. large multinational company,
or a small family owned business.
• We need to have clear:
- Division of labour
- Lines of authority
- Coordination
• Organisation is both important for the original design of an organisation structure,
but also for organisations that wish to change their existing structure.
• Organisation follows from the concept of planning.
Depending on size, culture, activity and history.
Size: large multinational organisations have lots of branches and subdivisions -
each with its own hierarchy, e.g. one person is head of UK organisation, but not top
overall.
Culture: more autocratic tend to have taller structures, more democratic have flatter
structure.
Activity: nature of business influences structure: more creative flatter structure to
encourage ideas to be created and developed as people feel more equal.
History: structures evolve and are difficult to reorganise. Therefore roles important
in the past may remain in the structure even though they aren’t relevant anymore.
Overall, successful organisations grow and employ more people to cope with extra
work. Overtime, these roles may not remain vital, so constantly needs changes.
2
