Answer to Question #282865 in Management for Faeem

Question

1. Explain to the MD the steps to be taken to establish clear reporting lines.

Take into consideration

1.1. What must be considered when establishing reporting lines (12)

1.2. What must be considered when establishing a suitable organisational structure (8)

2. Use a diagram to illustrate how reporting lines will link the staff to the responsible director and MD within a flat organisational structure. (7)

Answer 1

Factors to consider when deciding reporting lines

Reporting line refers to the structure of accountability in an organization. It shows to whom each staff reports and is accountable to.

Factors to be considered while designing the reporting lines include;

The size of the company – the size of the company plays a major role in the number of reporting lines.

Type of business – Different businesses have different reporting lines.

Products and services produced – Reporting lines are done depending the product line.

Current projects – Reporting lines can be designed in line of the current project.

Geographic locations – reporting lines can be designed in relation to geographical location of organization.

The employee's individual expertise – Span of control for expert employees can be large compared to unskilled employees as they are easier to control.

 Establishing a suitable organisational structure

An organizational structure refers to the way an organization arranges its tasks, people and techniques. The main factors to consider when designing an organizational structure include;

Clarity

Complete clarity is required in the reporting relationship and also in the sources of information for decision making process.

Understanding

This is achieved when all workers know where they fit in the bigger picture of the organization as a whole. It is very important that members of management consider daily actions of workers and the underlying organizational culture, which dictates both their actions and reactions.

Decentralization

In centralization, all discussions and decisions are made by top-level managers, with less input from workers at lower levels. Centralization inhibits conversations among those who do the day-to-day work of the business. The decentralization of an organization is key as it allows and encourages open conversation among workers at all levels and spur sharing of information in the organization. Delegation of authority is one of the effective ways of decentralizing decision making within an organization.

Stability and Adaptability

A well-structured organization looks for changes in the environment and purposefully adapts to these changes. The organization must be able to maintain stability in unstable circumstances. This simultaneous stability and adaptability are achieved through the connections only formed between people through organizational routines.