Strategic Management and

Marketing

MAR130

Theories of Organisations

Presentation Name
 Objectives

By the end of this session you will be able to understand

The main theoretical approaches to organisations

Types, objectives, and internal contexts of

contemporary organisations

Presentation Name
 Approaches to Organisation Theory
Positivist or Modernist – provides models, frameworks,
and principles for practising managers.

Symbolic-Interpretive or Constructivist –
organisational reality does not have an objective existence
and people construct organisational realities through giving
them their own meanings.

Postmodernist – not characterised by order and unity

but by uncertainty, image, complexity and contradiction.

(see Farnham.D (2010) Human Resource Management in Context. Strategies, insights and solutions.
P42)

Presentation Name
 Structure
An organisation structure is a grouping of activities and people
to achieve the goals of the organisation. Considerable variation is
possible in the type of structure employed and the influences at
work include technology, size, the nature of the environment,
management strategy, the behaviour of interest groups, the firm’s
history and wider cultural factors. In general terms, a particular
structure emerges to maximize the opportunities and solves the
problems created by these various influences. In practice,
however, the evidence concerning the influence of structure and
performance is very patchy indeed.

Needle 10.
 Drucker 1989

‘Good organisational structure does not by itself

produce good performance. But a poor organisational
structure makes good performance impossible, no
matter how good the individual managers may be. To
improve organisational structure…..will therefore
always improve performance.’
 Mullins ‘96

‘Structure makes possible the application of the

process of management and creates a framework of
order and command through which the activities of the
organisation can be planned, organised, directed and
controlled.’
The Organisational Iceberg

Senior ‘97
 The Organisational Chart

A hierarchical organisation chart in a typical school. The chart shows

different levels of responsibility at each level. (Biz.ed.co.uk)
Tall & Flat Organisation Structures

Hitt, Black, Porter 2005

Spans of Control
 Tall Structures
Tend to be formal.

Slower at making decisions and responding to

change in the external environments.

Response by management to flatten such structures

(downsize).

As environmental uncertainty increases managers

tend to push for flatter structures. Such uncertainty
makes for more non-routine tasks. This tends to make
for narrow spans of control which pushes towards taller
not the desired flatter structures!
 Flat Structures

Fewer layers.

Less hierarchy

‘Easier’ response to change.

Communication does not have to travel so far.

Functional Structures

Naylor 04
Division by Product or Geography

Mullins 07
Hybrid Structures

Naylor 04
Matrix Structures

Mullins 07
 Factors Influencing the Span of Control
Job complexity - more complex demand more managerial input = narrow span of control.

Job similarity - If managing a group of employees with similar jobs = span can be much
wider.

Geographic proximity of supervised employees - Where employees are working in

close proximity they are more easily managed allowing for a wider span of control.

Amount of coordination - Where management need to spend a lot of time coordinating

tasks a narrower span is advisable and appropriate.

Abilities of employees - Where employees are more knowledgeable and capable a wider
span of control is possible. The greater the abilities the wider the span.

Degree of employee empowerment - Trusted and empowered to make decisions the

employee will need less supervision and therefore a wider span can be employed.

Ability of management - More capable managers can manage more employees. This
lessens the need for a narrow span of control.

Technology - Communication technology – mobiles, fax, email, video conferencing etc all
contribute to the effective management of employees in diverse work locations having
complex and different roles.