1.4.3 Organisational design Flashcards
What is Organisational design?
Organisational design is the framework that provides a business with a structure to achieve its objectives
What does Hierarchy mean?
Hierarchy is the structure of the workforce within an organisation showing who is accountable to whom
What are the two different types of sturcture?
Tall and Thin
Wide and Flat
What is a benefit of Tall and Thin?
Allows for closer supervision and communication between the two levels
What is a disadvantage of Wide and Flat?
Requires greater delegation but fewer levels allowing for quicker communication through the firm
What is the Chain of command?
Chain of command is the way authority and power is passed down the levels of hierarchy
What is the Span of control?
The span of control shows the number of subordinates that a manager or supervisor is directly responsible for
If a manager has many subordinates this is called a _____?
wide span of control
If a manager has few subordinates this is called ___?
A narrow span of control
Authority can be?
Centralised i.e. maintained by a few at the centre of the organisation
OR
Decentralised i.e. spread across the organisation
Authority can act as a motivator. True or False?
TRUE
What is Centralisation?
Centralisation is when the responsibility for decision making is maintained, by a limited number of senior managers, at the top of the hierarchy
What are benefits of a Centralised structure?
Few decision makers Decisions are made by those at the top of the hierarchy Speeds up decision making Maintains tight control Bureaucratic
What is Decentralisation?
Decentralisation is when the responsibility for decision making is delegated to a number of middle managers throughout the hierarchy
What are benefits of a Decentralisation structure?
Delegates decision making Decisions made at many levels within the hierarchy Frees up management time Provides motivation Reduces bureaucracy
What is a Matrix structure?
A matrix structure is one where teams are put together from different functional areas to work on specific projects
What are advantages of the Matrix structure?
Communication across functional areas
Range of view points considered
Functions support and understand each other
Motivational
What are some Disadvantages of the Matrix structure?
Potential loss of control
Dependent upon effective delegation
Teams may take time to work together effectively
Can cause conflict
What are some factors that affect the structure?
Attitudes and priorities of leaders and their preferred leadership styles
Organisational design
The skills and attitudes of the workforce
The nature of the decisions to be made
Legal form
Business objectives
Response to changes in technology
Degree of confidence and stability in the economic environment
What are drawbacks of a long chain of command?
Slower commuication and potentially decision making
What is a possible advantage of a long chan of command?
Clear as to who is in charge.
