1.4.3 Organisational Design Flashcards
Definition of Organistational Structure
The reporting relationships, roles, and responsibilities of employees in the organisation.
Definition of Hierarchy
The levels of authority in a business, in a ranking from top to bottom
Definition of Chain of Command
The formal line of authority that flows from management to lower level employees
Definition of Span of Control
The number of employees that a manager can effectively supervise
(narrow = more layers of management)
Definition of Centralised Structure
Decision-making authority is concentrated at the top
Definition of Decentralised Structure
Authority is more distributed throughout the organisation with lower level employees having more decision power
Characteristics of a Tall Structure
-Multiple levels of management
-Normally centralised
-Long chain of command
-More common in larger businesses
Characteristics of a Flat Structure
-Fewer levels of management
-Normally more decentralised
-Short chain of command
-More common in small businesses
Characteristics of a Matrix Structure
-Usually built around specific products
-Combines functional areas in a specialist team
3 Advantages of a Tall Structure
-Provides a clear hierarchy
-Promotes specialisation
-Offers opportunities and career advancements
3 Disadvantages of a Tall Structure
-Can have communication barriers
-Decision making can be slow
-Lead to excessive levels of management
3 Advantages of a Flat Structure
-Promotes collaboration
-Decision making is faster and efficient
-Encourages innovation and autonomy
3 Disadvantages of a Flat Structure
-May not provide career advancement
-May require employees taking on more
-May lead to role ambiguity
3 Advantages of a Matrix Structure
-Promotes cross functional collaboration
-Allows for specialisation and expertise
-Enables efficient allocation of resources
3 Disadvantages of a Matrix Structure
-Can create confusion over roles
-Requires high communication and coordination
-Can lead to conflict over priorities and resources
