Barbour Brown Ltd Case Study
Executive summary
The organizational structure of the current company was found to be a flat hierarchy with the departmentalization by function. New proposed structure is advised to be matrix with the functional and service divisions. Contingency models were used by: Joan Woodward, James David Thompson, Charles Perrow and Burns and Stalker. Models have explained the influence of the situational variables of task, technology and size on the creation of the new organizational structure.
1. Introduction
The good organizational structure should be focused its attention on particular areas, shape how resources will be used, direct communication flows and define control of the company. Aim of this report is to illustrate the current organizational structure of the Barbour Brown Ltd described in the given case study along with the explanation of how the activities are grouped. Next section proposes the new organizational structure designed for the company after the merger with the John Colbert Civil Engineering Contractors as well with the grouping of the activities. It is followed by the description of the line, staff, functional and lateral relationships within the new structure and the authority, responsibility and delegation with the reference to the new organization.
2. Management Approach
The Barbour Brown Engineering Ltd is a formal organization as it has defined reporting structure. David has set the written procedures providing the formal support to the structure covering rules for behaviour and such areas as grievance and discipline. (LO1 p.5) The management structure used by David is bureaucracy as proposed by the German philosopher Max Weber. Weber defined his bureaucratic system by specific authority hierarchy and a formal set of rules and procedures to be followed. It complies with David’s regulations about him first receiving new projects, allocating all the work and requiring authorization from him or James for every site visit made by the
The organizational structure of the current company was found to be a flat hierarchy with the departmentalization by function. New proposed structure is advised to be matrix with the functional and service divisions. Contingency models were used by: Joan Woodward, James David Thompson, Charles Perrow and Burns and Stalker. Models have explained the influence of the situational variables of task, technology and size on the creation of the new organizational structure.
1. Introduction
The good organizational structure should be focused its attention on particular areas, shape how resources will be used, direct communication flows and define control of the company. Aim of this report is to illustrate the current organizational structure of the Barbour Brown Ltd described in the given case study along with the explanation of how the activities are grouped. Next section proposes the new organizational structure designed for the company after the merger with the John Colbert Civil Engineering Contractors as well with the grouping of the activities. It is followed by the description of the line, staff, functional and lateral relationships within the new structure and the authority, responsibility and delegation with the reference to the new organization.
2. Management Approach
The Barbour Brown Engineering Ltd is a formal organization as it has defined reporting structure. David has set the written procedures providing the formal support to the structure covering rules for behaviour and such areas as grievance and discipline. (LO1 p.5) The management structure used by David is bureaucracy as proposed by the German philosopher Max Weber. Weber defined his bureaucratic system by specific authority hierarchy and a formal set of rules and procedures to be followed. It complies with David’s regulations about him first receiving new projects, allocating all the work and requiring authorization from him or James for every site visit made by the
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