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