1.4 Organisational Design Flashcards
What is organisational design?
The framework structure to achieve a firms objectives
What is organisational stucture?
The way the workforce is organsied including job roles and how communications flows
What is an organisational chat?
A visual representation of the organisational structure
What does hierachy mean?
The structure of the workforce within an organisation showing who is accountable to who?
What is the hierachy like in a tall and thin structure?
there are many lays but with a lower span of control
What is the hierachy like in a wide and flat structure?
Their are fewer levels but with a wider span of control
What is a chain of command
The way authority and power is passed down the levels of hierarchy
Longer the chain of demand the slower the communication
What is the span of control?
The number of subordinates a manager/ supervisor is directly responsable for
What is authority?
The power of an employer to instruct subordinates, make decisions and control the use of resources
Authority can be 2 things what are they?
Centralised or Decentralised
What is centralised authority?
Where decisions are made at the top of the heirarchy
What is decentralised authority?
Where decisions are made further down the line low level managers now make decisions
+ve of centralised authority?
Decisions made by more experianced people
Quicker ideal in dynamic market
Improve consistency
-ve of centralised authority?
Lose employee ideas reducing innovation
Senier managers may not have the best understanding of the customers
May demotivate employees further down the hierarchy
+ve of decentralised authority?
Can better adapt to customer needs
Promote flexablility and innovation
Resolve issues quicker
-ve of decentralised?
Inexperianced staff may lead to poor decisions
Inconsistency
Not everyone wants extra responsability
Duplicate jobs
What could influence a firm choosing centralised or decentralised?
Finacial situation - decentralised more expensive
The market - dynamic needs fast decisions
Ownership - franchises need to stay consistent
Skillset of lower levels
Importance of decisions
Leadership style - autocratic = centralised
What are the key features of a tall structure?
Many levels of hierarchy
Long chain of command
Narrow span of control
Advantages of a tall structure
Increased supervsions from narrow span of control
More promotional opportunities - more motivational
Clear hiearchy
Less delegration from managers
Disadvantages of a tall structure
Long chain of command - poor communication
Potentially slower decisions
High costs from more managers
Narrow span of control may be demotivating for subordinates
Adavantages of a short structure?
Faster communication
Quicker decisions
Increased staff motivation from move control
Disadvantages of a short structure?
Wider span of control = hard to manage = reduce productivity and quality
Increased responsability and workload
Less promotions means less motivation
What is a matrix structure?
Where teams are put together from different functional areas to work on specific projects
Advantages of a matrix structure
Eeach person may bring new and different ideas
Utalise expertise of different staff
Teamwork increases motivation and staff relatiomships
Improve communication and cooperation between departments
