14 - Organisational design Flashcards
Role of a director
Employed to run the business
May have ultimate authority or theremay be a group of directors who take repsonsiblity
Role of manager
Making day-to-day decisions
controls an aspect of the business
Role of a supervisor
Regulates the work of another employee
Role of a team leader
motivates their team
takes a leadership role within their own team
Organisational design
How a business responds to external factors and how people within a business related to one another
Factors within organisational design
- authority
- delegation
- span of control
- decision making process
- hierachy
Chain of comand
The levels within the hierachy, more levels may be added to the chain as an orgnaisation grows
Span of control
The number of employees that a manager is directly repsonsible fr
Tall organisation
A business with a large chain of command butsmall span of control
Flat organisation
a business with a wide span of control, that encourages delegation to team leaders, a smaller chain of command
Delegation
Passing down authority through the business
Benefits of delegation
lessens the workload on managers
job enrichment for lower staff
Centralisation
when decision making is mostly done by senior managers in a buisiness
Benefits of centralisation
- suitable in times of crisis
- effectve at cost minimisation
- appropraite when workers are low skilled and managers have the knowledge
- works well where standardisation is needed
Decentralisation
when the majority of decisions are delegated to managers in charge or regions, fucntions and product categories
Benefits of decentralisation
- flexbile working conditions
- job enrichment
- reduce workload on senior managers
- good when local teams are best placed to make decisions to meet customers needs
- approproiate where business is spread over a wide area and cultures/trends change
Role of an operative
skilled worker, involved in production or service proviison such as assembling caars or in IT
Matrix structure
connects staff with people with specialist skills.people from across the business form specialist teams
Benefits of a tall sturtcure
tighter control of subordinates
clear managment sturcture
clear route of promotion, increased motivation
Negatives of a tall structure
costly
poor communication
slow decision making
Benefits of a flat sturcture
good communication
lower managment costs
quicker decision making, approval isnt needed from lots of managers
better motivated employees, less monitored and more empowere
Drawbacks of a flat sturcture structure
may lose control of the workforce
less productivity possible
burden on managers
Benefits of a matrix structure
flexibility
motivated employees
Drawbacks of a matrix structure
requires more secreterial staff an office staff
may be difficult to co-ordinate the team
