1.4.3 Organisational Designs Flashcards
Why is organisational designs important
That type of organisational designs dictates how a business responded to external factors
What are factors to consider with organisational design
- Levels of hierarchy
- delegation
- span of control
- authority
- decisions making process
What is the Chain of command in reference to
- Levels within a hierarchy
- tall organisation= lots of layers
- Flat organisations = less layers
What is delegation
This is the passing down of authority throughout the organisations
Define centralisation
Decisions are led by senior managers
What are some benefits of centralisation
+ good for decisions where standardisation is required
+ suited to authoritarian leaderships
+ suitable for times of crisis
+ effective for cost efficiency
Define decentralisation
Refers to a decisions making process whereby the majority of decisions are delegated to managers in charge of regions, functions and products
What are some benefits for decentralisation
+ effective where circumstances differ based on demographic
+ appropriate for business is spread over a wide area or globally
What is a matrix structure
This involves workers being influenced by project and business functions
What are some benefits of a matrix structure
+ managers have higher power
+ clear promotional route
What are some drawbacks of matrix system
- communications may be poor because of chain and command
- slower to make decisions
- tight control can be demotivating
