Organisational structures

INTRODUCTION

This unit is about the nature of organisational structure, the impact of centralisation and decentralisation on the
management task. The aim is to develop an understanding of advantages and disadvantages in order to make informed choices.

» SCENARIO

Learners may use their own employment context, or that of another organisation with which they are very
familiar, to base their assignment. However, in the case that they are not able to do so, please use the below
scenario: –
You are a senior manager of a medium sized company based on two sites. Your organisation is considering a
restructure to relocate all functions on to one site with the aim of improving culture and innovation. You have
been asked to analyse potential structures and how the reorganisation may impact organisational achievement.

» TASK 1

Analyse the objectives of two different organisational structures and the effect they have on organisational
cultures. The selection may be one organisation with multiple sites compared with an organisation contained
within one site. Consider how the different cultures could affect the organisational performance.
Within one of the organisational structures explain the interrelationship of institutional, managerial and technical
levels. Analyse whether the structure has a positive or negative effect on the interrelationships of these levels
with any recommendations for improvement.
Identify and evaluate potential sources of organisational ideas and innovations within an organisational structure.
Guideline word count: 850 – 1,000 words
A.C. 1.1 – Analyse how the objectives of organisational structure impact organisational culture
A.C. 1.2 – Discuss the interrelationship of institutional, managerial and technical levels within an
organisational structure
A.C. 1.3 – Evaluate the potential sources of organisational ideas and innovations within an organisational
structure

» TASK 2

Identify and analyse six key factors that could influence organisational structure and systems of management.
Examine the structural design of an organisation to compare the operational functions with support functions to
ensure achievement of the task. Consider the value chain analysis and synergy between support functions and
operational functions.
Assignment Brief: Unit 6006V1: Organisational structures
Version 3: June 2017
Explain the design implications for an organisation in distinguishing between operational and support functions
Guideline word count: 850 – 1,000 words
A.C. 2.1 – Analyse the variables that influence organisational structure and systems of management
A.C. 2.2 – Compare the operational functions of an organisation with those functions which support the
achievement of the task
A.C. 2.3 – Discuss the implications for an organisation when designing an organisational structure in
distinguishing between operational and support functions

» TASK 3

Describe an organisational management system that is centralised and one that is decentralised, differentiate
between each system. Identify key factors which may influence which system is adopted by an organisation.
Identify the advantages and disadvantages of a centralised and decentralised system then undertake
comparative analysis of both systems. A range of stakeholders may influence the choice of management system
to be adopted, consider the views of employees and the organisation when establishing the advantages and
disadvantages of these systems.
Distinguish between management span of control and management chain of command.
Guideline word count: 800 – 1,000 words
A.C. 3.1 – Differentiate between an organisational management system that is centralised and one that is
decentralised
A.C. 3.2 – Compare the advantages and disadvantages of a centralised and decentralised system
A.C. 3.3 – Distinguish between management span of control and management chain of command