1.4.3 - ORGANISATIONAL DESIGN Flashcards
What is ORGANISATIONAL DESIGN>
Organisational Design refers to a DIAGRAM or CHART that SHOWS the LINES OF AUTHORITY and LAYERS in the HIERACHY of the Business
What is the CHAIN OF COMMAND?
the FLOW OF INFORMATION power and authority THROUGH the ORGANISATION
those at the TOP have MORE POWER and AUTHORITY
they can DELEGATE TASKS to those SUBORDINATE to them
COMPLAINTS and STATUS REPORTS FLOW UP the chain and ORDER FLOW DOWN
What is the SPAN OF CONTROL?
the NUMBER of SUBORDINATES that they can DELEGATE TO
NUMBER of PEOPLE that a MANAGER is RESPONSIBLE FOR
SMALL Spans of Control will be a TALL Hierarchy and JOBS will be VERY SPECIALISED
WIDE Spans of Control will mean a FLAT HIERARCHY and EMPLOYEES will be given MORE RESPONSIBILITY and LARGER ROLES
What are 4 Things that ORGANISATIONAL CHARTS SHOW
- NAMES of DEPARTMENTS e.g. HR, FINANCE
- JOB ROLES e.g. Directors, Managers, Supervisors
- LINES of AUTHORITY
- CHAINS of COMMAND
What are Centralised Structures
where Control and therefore Decision Making is Made by the Highest Level of Management
e.g. CEOS
What are 3 PROS of Centralised Structures
+ QUCIKER DECISION MAKING -> as Made by Top Layer of Management -> Very Few Staff. also More Experienced and Skilled -> Make Decisions Quickly and Communicate to Staff
+ CONISTENCY -> Making Decisions at Highest Layer -> Everyone Told What to Do -> Consistency in Aims, vision and Culture. Service Provided -> All Branches Likely to be Same -> Same Cutomer Experience
+ MOTIVATION -> is a Clear Job/Role to Do -> Therefore Do Role with More Confidence -> Increase Productivity
What are 2 CONS of Centralised Structures
- RIGIDITY -> Likely Less Flexibility in Decision Making -> Always need to Check with Top Layer if okay -> might Miss Oportunity
- MOTIVATION - Middle/Junior Managers may Lack Authroity, feel Empowered -> Decrease Motivation, Productivity, Innnovation
What is Decentralised Structures
where Control and therefore Decision Making is Delegated by Higher Layers of Management
e.g. to Department, locations, Middle/Lower layers of Management
2 PROS of Decentralised Structures
+ MOTIVATION - Likely to Empower Workers -> Take More Initiative -> Increase Productivity
+ FLEXIBLE DECISION MAKING -> Higher Layers Allowing Lower Levels to Make Decisions -> can Seize Opportunity and React Quickly at Local Level
2 CONS of Decentralised Structures
- LESS CONSISTENCY - Lower Levels may have Different Ideas to Senior Management -> Lose Consistency on Aims /Culture of Business -> Customer Experience Not Same in Every Branch
- DEPENDS ON - Skills/Experience of Who Decision Making been Delegated Too
What are 3 TYPES of ORGANISATIONAL STRUCTURE
- TALL Structure
- FLAT Structure
- MATRIX Structure
What are 4 CHARACTERISTICS of TALL STRUCTURE
LOTS of OPPORTUNITY for PROMOTION
INFORMATION takes LONG TIME to GET from BOTTOM to TOP,
LONG TIME for DECISIONS to be MADE
WORK is SHARE among MORE PEOPLE so LESS STRESS
EVERYONE KNOWS where THEY ARE in HIERACHY
What are 2 ADVANATGES of TALL STRUCTURE
+ SUPERVISORS normally have a SMALL SPAN of CONTROL so that they can GET TO KNOW their SUBORDINATES really WELL
+ KNOWING SUBORDINATES means that THEY can DELEGATE the RIGHT TASKS and MAKE SURE their TEAM is WELL TRAINED
What are 3 DISADVANATGES of TALL STRUCTURE
- LOTS of LAYERS AND LONG CHAIN of COMMAND can mean the BUSINESS is VERY INFLEXIBLE
- can also mean that COMMUNICATIONS within the ORGANISATION are SLOW
- EXPENSIVE as there are MORE MANAGERS and SUPERVISORS
What are 2 CHARACTERISTICS of FLAT STRUTCURE’S
have a WIDER SPAN of COTRNOL and a SHORT CHAIN of COMMAND so INFORMATION FLOWS QUICKLY throughout the organisation