1. 3.18 Competitive
organisational
structures

2. identify and
explain
different
organisational
structures
explain how
larger
businesses can
adapt
organisational
structures
Learning objectives
evaluate the
effectiveness of
adapting organisational
structures

3. What is an organisational
structure?
Definition
Definition
The relationship between
The relationship between
different people and functions
different people and functions
in an organisation – both
in an organisation – both
vertically and horizontally
vertically and horizontally

4. Task 1
 Recap your understanding of organisational
structures by:
 listing the different types of organisational structures
 briefly explaining the key characteristics of each type of
structure

5. Task 2
 Each pair will have a case study of organisational
structure to read
 Using the case study, feedback to the rest of the
group by:
 briefly summarising the nature of the business
 identifying the organisational structure of the business
 explaining why this organisational structure is appropriate
for the business and the disadvantages of alternative
structures
 explaining why its organisational structure might impact on
the business’ competitiveness and / or support the business
aims and objectives

6. Speed of
Speed of
strategic
strategic
decisiondecisionmaking
making
Impact of
Impact of
layers of
layers of
management on
management on
costs
costs
Impact on competitiveness
Involvement of
Involvement of
‘right’ people in
‘right’ people in
decision-making
decision-making
Effectiveness
Effectiveness
of channels of
of channels of
communication
communication

7. Task 3
 In your table groups, read the case study on
Wesley Hains’ card design business.
 In your table groups identify some of the
influences on organisational structures by
discussing the task at the end of the case study

8. Task 4
 In your table groups, read the case study on the
Future Network plc
 In your table groups identify how the
organisational structure of the business has been
changed and suggest pros and cons of the changes

9. Centralisation
Centralisation
Where decision-making authority is
Where decision-making authority is
concentrated in the hands of a small number of
concentrated in the hands of a small number of
senior managers at the top / centre of the
senior managers at the top / centre of the
organisation
organisation
Adapting to improve
competitiveness (1)
Decentralisation
Decentralisation
Where the decision-making authority is
Where the decision-making authority is
delegated to subordinates in the
delegated to subordinates in the
organisational structure
organisational structure

10. More control for
More control for
senior managers
senior managers
more experienced and
more experienced and
skilled in decisionskilled in decisionmaking
making
Strong
Strong
leadership
leadership
Centralisation: advantages
Standardised
Standardised
procedures
procedures
leads to economies
leads to economies
of scale esp in
of scale esp in
purchasing
purchasing
Decisions made
Decisions made
for business as a
for business as a
whole
whole
better allocation of
better allocation of
funds between
funds between
departments
departments

11. Frees time for
Frees time for
senior managers
senior managers
Develops middle
Develops middle
and junior
and junior
management
management
Empowers and
Empowers and
motivates workers
motivates workers
Decentralisation: advantages
Greater
Greater
flexibility and
flexibility and
quicker
quicker
response to
response to
change
change
Decisions made
Decisions made
by those closest
by those closest
to the issue
to the issue

12. Delayering
Delayering
The process of removing levels in the
The process of removing levels in the
hierarchical structure in order to create a
hierarchical structure in order to create a
leaner and more efficient organisations
leaner and more efficient organisations
Adapting to improve
competitiveness (2)

13. Reduction in
Reduction in
indirect costs
indirect costs
through reduction in
through reduction in
number of permanent,
number of permanent,
full time staff
full time staff
Improved
Improved
motivation
motivation
through greater
through greater
responsibility
responsibility
Delayering: advantages
Better able to respond to
Better able to respond to
changing market conditions
changing market conditions
through delegation, better
through delegation, better
understanding of customer needs and
understanding of customer needs and
generation of ideas
generation of ideas

14. Lower motivation
Lower motivation
through reduced job
through reduced job
security
security
Loss of
Loss of
valuable
valuable
knowledge and
knowledge and
experience
experience
Delayering: disadvantages
Increased workload of
Increased workload of
managers
managers
through increased span of control,
through increased span of control,
possible increase in stress and
possible increase in stress and
absenteeism, greater need for training
absenteeism, greater need for training
adding to costs
adding to costs

15. Flexible workforces
Flexible workforces
Introduction of core and peripheral workers,
Introduction of core and peripheral workers,
outsourcing and homeworking
outsourcing and homeworking
Adapting to improve
competitiveness (3)

16. Task 5
 In pairs, investigate the nature of one of the
aspects of flexible workforces using textbooks
and online resources
 Core and peripheral workers
 Outsourcing
 Homeworking
 Produce a poster or factsheet or PowerPoint
presentation which
 Outlines the nature of approach
 The advantages and disadvantages of the approach
 A case study of the approach