1.4.3 Organisational design🗼

Question 1

What is an organisation structure?

Answer 1

Employees jobs and roles organised in a business

Question 2

How is organisational design shown?

Answer 2

Shown as a diagram on Structure 

Question 3

Why do businesses create an organisational structure? (4)

Answer 3

Accountability and management is clear

makes lines of communication clear

roles and responsibilities are evidence for all to see

aids in decision-making and organisation

Question 4

What is a hierarchy?

Answer 4

A system where employees are ranked due to their status or authority

the higher but the more authority or power you have - (Spans of control) 

Question 5

What is a chain of command?

Answer 5

Lines of communication and flow of power through the hierarchy

Question 6

What is a subordinate?

Answer 6

A person below another person in chain of command 

Question 7

What is a line manager?

Answer 7

A person above somebody in the chain of command

Question 8

What is span of control?

Answer 8

Number people a person is directly responsible for in a business

Question 9

What is delegation?

Answer 9

passing roles down chain of command- Transfer responsibility

Question 10

What is delayering?

Answer 10

Removing A layer of the business

Question 11

What is the difference between a centralised and decentralised business?

Answer 11

Centralised - decisions are made in the centre of the organisation eg. Senior team

Decentralised decisions are made at a local or lower level

Question 12

What are the positives of businesses being centralised?

Answer 12

Considers whole business in all decisions

Less decision-makers - quicker- less consultation - Clearer channels of communication

Decisions are focused around core aspects

consistency - Standardisation of products and service - economies of scale

tight control from senior staff

Question 13

What are the positives of decentralised businesses?

Answer 13

Enables business to meet local customers needs

brings the local knowledge and expertise into decision-making

empowers employees were having more responsibility

Question 14

What are the three organisational structures?

Answer 14

Tall hierarchal structure
flat structure
matrix structure

Question 15

What are the three characteristics of the tall hierarchical structure?

Answer 15

Long chains of command
Narrow Spans of control
many levels

Question 16

What are the three positives of having a tall hierarchal structure?

Answer 16

More opportunities with promotion

Clear lines of communication and roles

More effective delegation improved relationship with subordinates

Question 17

What are the three negatives of a tall hierarchical structure?

Answer 17

Communication is slow makes it harder to expand to change

Expensive more jobs to fill

Lack motivation as you like responsibility lower down the hierarchy

Question 18

Give a few examples of businesses that would use a tall hierarchical structure

Answer 18

public sector schools hospital army

Question 19

What are the three characteristics of a flat structure?

Answer 19

Wide span of control
a few layers
short to chains ⛓ of command

Question 20

What are the three positives of having a flat structure?

Answer 20

Business is more agile able to respond to change quicker

more motivated employees as there’s more responsibility

Communication is quicker

Question 21

What are the negatives of having a flat structure?

Answer 21

Limited promotional opportunities

Increased workload for managers due to more subordinates to manage

More conflicts for higher roles

Question 22

Examples of businesses that will use a flat structure?

Answer 22

Hospitality

businesses that are very dynamic within a dynamic market needs to be agile

Question 23

What is the matrix structure?

Answer 23

Different employers from different functional areas joining together to work on a specific project

Question 24

What are the positives of having a matrix structure?

Answer 24

Each person brings their own specialist skills to decision-making

Decision-making is quick everyone represented

Good problem-solving due to different approaches and skills of team

Question 25

What are the negatives of having a matrix structure?

Answer 25

Difficult to assemble

Requires admin support to operate

Decisions will still require senior approval