1.4.3. Organusational Design

Question 1

Structure

Answer 1

1. Hierarchy
2. Chain of command
3. Span of control-No. of subordinates directly answerable to 1 manager
4. Centralised- most decisions made by senior management
5. Decentralised- decision making passed lower down via delegation

-Tall structure- many layers but narrow down of control
+ves: allows close supervision of staff, good communication within immediate team , plenty of opportunities if promotion
-ves: may feel over supervised and not trusted, poorer communication with so many layers, little scope to use own initiative

Flat- few levels of hierarchy but wider span of control
+ve: increased delegation , greater motivation from staff (use own initiative)

Matrix-More than one line manager, more team based
+ves: working together prevents delays, focus on success of project, learn from colleagues
-ves: each project team member will have at least two bosses (unclear whose oreer to prioritise)

Question 2

Impact of different organisational structures on efficiency and motivation

Answer 2

Effects on efficiency and therefore unit costs include:
-Poor communication leads to mistakes
-Duplication of tasks
- Tasks overlooked and not done
-Departments failing to work together

Structure can affect motivation by encouraging or preventing:
-Dekegatuon
-Scope to show initiative
-Responsibilty
-Opportunities for promotion