1.4.3 Organisational design

Question 1

What is Organisational design?

Answer 1

Organisational design is the framework that provides a business with a structure to achieve its objectives

Question 2

What does Hierarchy mean?

Answer 2

Hierarchy is the structure of the workforce within an organisation showing who is accountable to whom

Question 3

What are the two different types of sturcture?

Answer 3

Tall and Thin

Wide and Flat

Question 4

What is a benefit of Tall and Thin?

Answer 4

Allows for closer supervision and communication between the two levels

Question 5

What is a disadvantage of Wide and Flat?

Answer 5

Requires greater delegation but fewer levels allowing for quicker communication through the firm

Question 6

What is the Chain of command?

Answer 6

Chain of command is the way authority and power is passed down the levels of hierarchy

Question 7

What is the Span of control?

Answer 7

The span of control shows the number of subordinates that a manager or supervisor is directly responsible for

Question 8

If a manager has many subordinates this is called a _____?

Answer 8

wide span of control

Question 9

If a manager has few subordinates this is called ___?

Answer 9

A narrow span of control

Question 10

Authority can be?

Answer 10

Centralised i.e. maintained by a few at the centre of the organisation
OR
Decentralised i.e. spread across the organisation

Question 11

Authority can act as a motivator. True or False?

Answer 11

TRUE

Question 12

What is Centralisation?

Answer 12

Centralisation is when the responsibility for decision making is maintained, by a limited number of senior managers, at the top of the hierarchy

Question 13

What are benefits of a Centralised structure?

Answer 13

Few decision makers
Decisions are made by those at the top of the hierarchy
Speeds up decision making
Maintains tight control
Bureaucratic

Question 14

What is Decentralisation?

Answer 14

Decentralisation is when the responsibility for decision making is delegated to a number of middle managers throughout the hierarchy

Question 15

What are benefits of a Decentralisation structure?

Answer 15

Delegates decision making
Decisions made at many levels within the hierarchy
Frees up management time
Provides motivation
Reduces bureaucracy

Question 16

What is a Matrix structure?

Answer 16

A matrix structure is one where teams are put together from different functional areas to work on specific projects

Question 17

What are advantages of the Matrix structure?

Answer 17

Communication across functional areas
Range of view points considered
Functions support and understand each other
Motivational

Question 18

What are some Disadvantages of the Matrix structure?

Answer 18

Potential loss of control
Dependent upon effective delegation
Teams may take time to work together effectively
Can cause conflict

Question 19

What are some factors that affect the structure?

Answer 19

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

Question 20

What are drawbacks of a long chain of command?

Answer 20

Slower commuication and potentially decision making

Question 21

What is a possible advantage of a long chan of command?

Answer 21

Clear as to who is in charge.