Leadership Assessment

L E A D E R S H I P

O R G A N I S AT I O N A L S T R U C T U R E S

M I S S I O N & V I S I O N S TAT E M E N T S

R E E C E T H O M A S V 2 . 1

ORGANISATION - DEFINITION

‘An organisation is a combination of human & material resources

brought together to achieve the objectives of an enterprise’

R E E C E T H O M A S V 2 . 1

ORGANISATIONAL STRUCTURES

 Organisational structures can be:

i. Formal or functional

ii. Matrix

iii. Informal

R E E C E T H O M A S V 2 . 1

FUNCTIONAL ORGANISATIONAL CHART

R E E C E T H O M A S V 2 . 1

FUNCTIONAL ORGANISATIONAL CHARTS

 Structure – number of people employed & their span of control

 Communication – shows the reporting structure. Seniority is shown

by being above other members

 Functions – shows the main areas of responsibility

R E E C E T H O M A S V 2 . 1

MATRIX ORGANISATIONAL CHART

 Used mainly by organisations that operate nationally and/or

internationally

 They are used to illustrate situations where some people may

have more than one manager

 They promote rapid decision making and allow a large degree

of flexibility & creativity

R E E C E T H O M A S V 2 . 1

R E E C E T H O M A S V 2 . 1

MATRIX ORGANISATIONAL CHART

INFORMAL STRUCTURES

 These structures are designed to be flexible & encourage

communication between all group members

 The structure may vary according to the task requirements

 Group members may have different degrees of authority

depending on their experience & the group objectives

R E E C E T H O M A S V 2 . 1

INFORMAL STRUCTURES

 Examples of informal structures:

i. Project teams

ii. Sub work committees

iii. Short term projects

iv. Special projects

R E E C E T H O M A S V 2 . 1

SPAN OF MANAGEMENT

 Refers to the number of people an individual supervises

 Factors that influence planning the correct span of

management include:

i. The location of the group & the type of work they are doing

ii. The supervisor’s ability

R E E C E T H O M A S V 2 . 1

SPAN OF MANAGEMENT

 If the people being supervised are all in the same room and

are all working on a similar task, supervising a large group will

be effective

 If the group are working interdependently, a more complex

approach to supervising is required. In this case, supervising

a small group will be more effective

R E E C E T H O M A S V 2 . 1

LINE POSITIONS

 These positions are held by those directly involved with the production of goods & services in an organisation

 In service organisations – those who are directly concerned with providing service to customers.

E.g. A travel agent in a retail travel agency

R E E C E T H O M A S V 2 . 1

STAFF POSITIONS

 These positions are held by people who provide specialist

advice to people in line positions.

E.g.. The ticketing clerk working for a retail travel organisation

R E E C E T H O M A S V 2 . 1

LINE & STAFF POSITIONS

 People in both types of positions are working together to

meet the organisation’s objectives.

 People in staff positions have no formal authority over

those in line positions other than providing specialist

knowledge

R E E C E T H O M A S V 2 . 1

LINE & STAFF POSITIONS

 To meet organisational objectives:

i. Line positions act directly

ii. Staff positions act indirectly by providing support

R E E C E T H O M A S V 2 . 1

ORGANISATIONAL RESTRUCTURING

 Certain events or trends can affect an organisation & force it

to change or restructure. Some causes may include:

i. Economic upturns & downturns

ii. Technological advances

iii. Environmental issues

iv. Compliance with new laws, regulations or taxes

R E E C E T H O M A S V 2 . 1

ORGANISATIONAL DOWNSIZING

 Downsizing refers to the action of reducing the number of

employees within an organisation

R E E C E T H O M A S V 2 . 1

ORGANISATIONAL DOWNSIZING

 When an organisation downsizes, it is mostly people in middle

management who loose their positions

 The layers of management are reduced as senior

management take on more of the responsibilities held by

middle management

R E E C E T H O M A S V 2 . 1

LEVELS OF MANAGEMENT

R E E C E T H O M A S V 2 . 1

DOWNSIZING & RESTRUCTURING

 These two actions normally occur at the same time.

i. An organisation will initially downsize to save money on wages &

increase profits

ii. They will then need to restructure to best utilise the human &

material resources that remain

R E E C E T H O M A S V 2 . 1

DOWNSIZING & RESTRUCTURING

 As a company downsizes & restructures, it tends to become less bureaucratic and formal

 Employees become more multi-skilled

 Decision making tends to fall on to the lower level staff. Eg supervisors

 This process can be referred to as industrial democracy & worker participation

R E E C E T H O M A S V 2 . 1

MISSION STATEMENTS

 Most if not all companies have a mission statement to outline it’s focus to

employees & clients

 It shows the direction of the company and the target market it intends to

pursue

 It provides a shared sense of direction & positive image for clients &

stakeholders

R E E C E T H O M A S V 2 . 1

CORPORATE MISSION STATEMENTS

 When thinking about a mission statement you need to consider the following :

i. What business are we in?

ii. What business should we be in?

R E E C E T H O M A S V 2 . 1

CORPORATE MISSION STATEMENTS

 Factors that influence mission statements include:

i. Social values & ethical principles

ii. Internal resources & competencies

iii. Opportunities & threats

R E E C E T H O M A S V 2 . 1

EXAMPLE: TOURISM VICTORIA

‘Maximise employment & the long term economic benefits of

tourism to Victoria by developing and marketing the state as a

competitive tourism destination’

Reference: http://tourism.vic.gov.au/

R E E C E T H O M A S V 2 . 1

EXAMPLE: MELBOURNE’S VALLEY OF THE

ARTS

To create a unified approach to tourism marketing in the

designated region

To harness the value of a cooperative approach to all activities to

successfully increase visitation, stimulate tourism activity,

economic development & employment within the area

Reference: http://tourism.vic.gov.au/

R E E C E T H O M A S V 2 . 1

DESIGNING A MISSION STATEMENT

 When designing a mission statement, use key words like:

i. Enhance

ii. Stimulate

iii. Encourage

iv. Provide

v. Maximise

vi. Increase

R E E C E T H O M A S V 2 . 1