In this report, I will be discussing how an organisation can, restructure their organisational structure to achieve effective management. Therefore, the understanding of an organisational structure is important. ‘An organisation is a group of individuals working together to achieve one or more objectives.’ (the open university, no date). In order to help the design of the structure organisation achieve a more up to date system there are some key factors that are needed to make it successful. ‘The right design arises from a company’s needs (Sophie Johnson, no date). The first key factor is the size of the organisation, for a company that has been in business for over 100 years means there has been employment growth therefore the business needs more structure compared to a smaller business, a larger business needs more managers supervising the employees of the company. (Osmond Vitez, no date). The key factors related to the size of the organisation include, specialisation, formalisation, vertical span and centralisation. Work specialisation is when organisations have employees that specialise in particular task, dividing individuals in to separate jobs. (Sherri Hartzel, no date). This is the way organisation separate their employees in to jobs this is beneficial to employers as they only have to train, one employee for a certain, job rather than training them for more than one task, it will save them money and time. Therefore, because the employee is solely focusing on one task them will be highly trained and have the knowledge to perform above and beyond. (Sherri Hartzel, no date). An example of this is if this organisation was a manufacturer they would have fully trained people on the production line where one person would label or pack etc. This makes to company run more efficiently and smoothly. (UK Essays, 2015). Moving on the next factor is centralisation, this refers to those who are higher in the hierarchal level to make decisions. (Johnson et al., 2008). More over those who are in the higher hierarchy they have the important decision of making vital verdicts for the company. (UK Essays, 2015). This means that having enough higher management staff is vital for the running of the company, as they will have the final say in decisions, making it easier for the organisation to reach their goals.
The next most important factor to running a successful organisation is your workforce, when it comes to the workforce of the organisation, it is important to identify employees that are skilled, unskilled and semi-skilled. (class-notes, 2017) Handy Shamrock organisational structure consisted of the first, second and third leaf this means that your first leaf is, your core professional workers, the managers the top of the workforce, next there is the contracted workers these workers filled up roles such as marketing. Finally, the part time workers these people fill up roles or are used during busier periods. (class-notes, 2017)