Management Structure

Teamwork at management level produces common goals and directions

In order to attain the objectives of the organisation, an organisational chart which sets out in diagrammatic fashion the roles and responsibilities of managers and, hence, their main work areas and tasks within the organisation, should be established. The primary purpose of establishing this chart is to assist in the efficient and effective operation of the organisation. The chart will enable to gain a clear picture of what should happen within the organisation. The structure established through this chart will highlight for the individual organisation: the primary or core areas of responsibility and the degree of specialisation adopted the distribution of power and authority the level of delegation and accountability the communication channels within the organisation and the methods of communication used for reporting purposes the key result areas that will be evaluated the control mechanisms adopted e.g. degree of centralisation and the span of control used the co-ordination processes used the decision-making processes adopted other arrangements associated with the good order and functioning of the organisation This organisational chart is the formal structure of the organisation which will be determined after considering the following factors: the strategic, tactical and operational objectives the size in terms of the number of employees, locations, financial and physical assets the age the environment within which the organisation operates the level of specialisation and independence that exists and its various sections the current distribution of power and authority between managers other characteristics (as discussed in section Characteristics of large-scale organisations) However, in reality, the actual structure of the organisation may vary greatly from this formal structure due to the dynamic nature of large-scale organisations and the environments within which they operate