1.4.3 Organisational design🗼 Flashcards
What is an organisation structure?
Employees jobs and roles organised in a business
How is organisational design shown?
Shown as a diagram on Structure 
Why do businesses create an organisational structure? (4)
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
What is a hierarchy?
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) 
What is a chain of command?
Lines of communication and flow of power through the hierarchy
What is a subordinate?
A person below another person in chain of command 
What is a line manager?
A person above somebody in the chain of command
What is span of control?
Number people a person is directly responsible for in a business
What is delegation?
passing roles down chain of command- Transfer responsibility
What is delayering?
Removing A layer of the business
What is the difference between a centralised and decentralised business?
Centralised - decisions are made in the centre of the organisation eg. Senior team
Decentralised decisions are made at a local or lower level
What are the positives of businesses being centralised?
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
What are the positives of decentralised businesses?
Enables business to meet local customers needs
brings the local knowledge and expertise into decision-making
empowers employees were having more responsibility
What are the three organisational structures?
Tall hierarchal structure
flat structure
matrix structure
What are the three characteristics of the tall hierarchical structure?
Long chains of command
Narrow Spans of control
many levels
What are the three positives of having a tall hierarchal structure?
More opportunities with promotion
Clear lines of communication and roles
More effective delegation improved relationship with subordinates
What are the three negatives of a tall hierarchical structure?
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
Give a few examples of businesses that would use a tall hierarchical structure
public sector schools hospital army
What are the three characteristics of a flat structure?
Wide span of control
a few layers
short to chains ⛓ of command
What are the three positives of having a flat structure?
Business is more agile able to respond to change quicker
more motivated employees as there’s more responsibility
Communication is quicker
What are the negatives of having a flat structure?
Limited promotional opportunities
Increased workload for managers due to more subordinates to manage
More conflicts for higher roles
Examples of businesses that will use a flat structure?
Hospitality
businesses that are very dynamic within a dynamic market needs to be agile
What is the matrix structure?
Different employers from different functional areas joining together to work on a specific project
What are the positives of having a matrix structure?
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
What are the negatives of having a matrix structure?
Difficult to assemble

Requires admin support to operate
Decisions will still require senior approval 
