1.4.3 Organisational Design

Question 1

What is organisational structure

Answer 1

• it outlines the reporting relationships, roles, and responsibilities of employees in the organisation

Question 2

What is a hierarchy

Answer 2

• refers to the levels of authority within an organisation

Question 3

What is a chain of command

Answer 3

• the formal line of authority hat flows down from the top management to lower-level employees
• it defines who reports to who and who is responsible for making decisions
• helps establish a clear communication channel and helps to maintain a accountability within the organisation

Question 4

What is a span of control

Answer 4

• the number of employees that a manager or supervisor can effectively manage
• narrow span of control = there are many layers of management
• wide span of control = there are fewer layers of management

Question 5

What are centralised and decentralised structures

Answer 5

• centralised = decision making authority is concentrate at the top of the organisation, with senior management making most of the decisions
• decentralised = decision making authority is distributed throughout the organisation, with lower level employees having more decision making power
  
  • it can promote flexibility and innovation, while centralisation can promote consistency and control

Question 6

Tall organisational structure

Answer 6

• characterised by multiple levels of management and a more centralised decision making process
• a long chain of command
• common in large organisations with complex operations

Question 7

Adv + disadvantages of tall structures

Answer 7

Advantages:
- provides a clear hierarchy of authority an defined roles and responsibilities
- promotes specialisation and expertise within each department or function
- offers opportunities for career advancement and promotion within the organisation
- all of this increases efficiency and motivation

Disadvantages:
- can create communication barriers between the upper and lower levels of the hierarchy
- decision making can be slow as information must pass through multiple layers of management
- this can lead to bureaucracy and excessive levels of management
- all of this reduces efficiency and motivation

Question 8

Flat organisational structures

Answer 8

• characterised by fewer levels of management and a more decentralised decision making process
• short chain of command
• common in small organisations or start ups

Question 9

Adv + disadv of flat structures

Answer 9

Advantages:
- promotes a culture of collaboration and open communication
- decision-making can be faster ad more efficient
- encourages creativity and innovation as employees have more autonomy and flexibility
- this all increases efficiency and motivation

Disadvantages:
- can lead to role ambiguity and a lack of clear hierarchy
- may not provide clear opportunities to career advancement or promotion
- this may require employees to take on multiple roles and responsibilities, leading to burnout and overwhelm
- this all reduces efficiency and motivation

Question 10

Matrix structure

Answer 10

• usually built around specific products or projects
• they combine the functional areas of a business with a specialist team that operates inside the business

Question 11

Advantages + disadvantages of matrix structures

Answer 11

Advantages:
- promotes cross functional collaboration and communication
- allows specialisation and expertise within each functional area
- enables efficient allocation of resources and coordination of multiple projects
- all this increases efficiency and motivation

Disadvantages:
- this can lead to conflict over priorities and resources
- this can crate confusion over roles and responsibilities, particularly when multiple managers are involved
- requires a high degree of communication and coordination, which can be challenging