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
What are 2 ADVANTAGES of FLAT STRUCTURE?
+ FEWER LAYERS of HIERACHYBETWEEN the Bottom and the Top of the organisation which may mean that COMMUNICATION is FAST
+ LOTS of DELEGATION means STAFF are GIVEN GREATER RESPONSIBILITY , which might mean OPPORTUNITIES to USE their ABILITIES
What are 3 DISADVANTAGES of FLAT STRUCTURE?
- STAFF can be OVERSTREHCED or OVERWORKED as there’s LESS SUPERVISION , this can CAUSE STRESS and DEMOTIVATION
- can CREATE a POWER STRUGGLE if the MANAGER is RARELY AROUND as Subordinates Jostle for Roles and Responsibilities
- WIDE SPAN of CONTROL means MANAGERS have TOO MANY STAFF to Manage and may Lose Touch with them
What are 1 CHARACTERISTICS of MATRIX STRUCTURE?
an example
in a Business where THERE’S MORE THAN 1 PRODUCT or more than One PROJECT RUNNING at a TIME a Matrx Structure than a Standard Hierachy
CAR MANUFACTURERS operate this way , e.g. project 1 might be a design of a family car, project 2a sports car and project 3 a 4x4
What are 3 ADVANATGES of MATRIX STRUCTURE
+ IDEAL for a Business that works on a Project by Project basis
+ VERY FLEXIBLE structure means that STAFF from DIFFERENT DEPARTMENTS can JUMP IN and OUT of Different Job Roles
+ Perfect to Exploit the Specific Skills of Staff
What are 3 DISADVANTAGES of MATRIX STRUCTURE
- possiblle CO-ORDINATION PROBLEMS between Departments
- CONFLICT of Interest across Projects
- STAFF STRETCHED across Different Projects, not SPENDING time in there Own DEPARTMENTS
What are 2 IMPACTS on MATRIX STRUCTURE on BUSINESS EFFICIENCY?
MATRIX organisations only suitable when the Business works on a Project by Project basis
For a Business that has Lots of Projects running at the Same Time, this type of Organisation is Very Efficient
What are 2 IMPACTS on TALL STRUCTURE on BUSINESS EFFICIENCY?
COMMUNICATION is SLOW in a TALL HIERACHY as there are MANY LAYERS for the information to Pass Through
This can Lead to Delayed DECISION MAKING
What are 2 IMPACTS on MATRIX STRUCTURE on BUSINESS MOTIVATION?
STAFF are INVOLVED in a Series of Projects which can be More Interesting than just One Job, which means it can be MORE MOTIVATING
What is 1 IMPACT on TALL STRUCTURE on BUSINESS MOTIVATION?
STAFF can be MOTIVATED because there are LOTS of OPPORTUNITIES for PROMOTION, with Lots of Layers in the HIERACHY
What are 2 IMPACTS on FLAT STRUCTURE on BUSINESS MOTIVATION?
STAFF are MOTIVATED in a FLAT STRUCTURE as they’re GIVEN more RESPONSIBILITY
also THEY’RE MOTIVATED as they have HAD a HAND in MANAGING and RUNNING the BUSINESS e.g. waitresses take turns in organising the rota
