Improving Organisational Design Flashcards
What does organisational design show
Shows structure and hierarchy
What does and organisational chart set out
Sets out who has authority and responsibility to make decisions
Organisational chart structure from top to bottom
Board of directors - give direction to the business
Managers - make sure targets are met
Team leaders - responsible for a team and shop floor workers
Supervisors - oversee things on a day to day basis
Shop floor workers - do actual work
What are organisations with lots of levels in the hierarchy called
Tall
What sort of chains of command do tall structures get
Long chains of command
What is meant by the chain of command
The path of communication and authority up and down the hierarchy
Link with tall structures and communication
Tall structures can affect communication - messages may take longer to get from top to bottom and therefore decisions take a long time to make and there’s lots of paperwork to deal with
What do flat structures consist of and what does this allow workers to have
Only few levels of hierarchy - workers have more responsibility and freedom
Flat structures can lead to managers getting ……
Overwhelmed
What is meant by the span of control
Number of people who report directly to the manager
Managers in a flat structure have a ….. Span of control
Wide span of control ( a lot of people report back to them
Managers in tall structure have a ….. span of control (what does this allow them to do)
Narrow - they aren’t responsible for too many people. This allows them to monitor the people below them more closely
What may happen if span of control is too narrow
Workers can become de motivated and they may feel they’re being micromanaged
What does delegation rely on
Trust between the two parties
What is delegation
Giving responsibility for decision making to people below you
Characteristics of good mangers when delegating
Knowing the strengths and weaknesses of the people below them when delegating work to right employees
Who are all decisions made by in centralised structures
By senior managers at the top of a business
Advantages of centralisation
- Business leaders have lots of experience making business decision
- Mangers get an overview of the whole business meaning decisions are consistent throughout
- Senior managers aren’t biased towards one department so they can make the best decisions for a business as a whole
- Senior managers can make decisions quickly because they don’t have to consult with anyone
Disadvantages of centralisation
- Not many people expert enough to make decisions about all aspects of the business
- Excluding employees from decision making can be demotivating
- the organisations reacts slowly to change allowing competitors to get ahead this is due to the senior mangers not spending time in the shop and therefore they’re slow to notice consumer trends
Who gets authority in decentralised structures
Shares authority to more junior employees
Advantages of decentralisation
- involvement in decision making motivates employees
- employees can use expert knowledge of their sector
- day to day decisions can be made quickly without having to ask their senior managers
Disadvantages of decentralisation
- junior employees may not have enough experience to make decisions
- inconsistencies may develop between divisions in a business
- Junior employees may not be able to see the overall situation and needs of an organisational
What factors may determine whether a business will want to choose a centralised or decentralised approach
The size nature objectives and culture of a business
When might a business centralise
May centralise in order to save money - centralised approach can result in flat and wide structure as levels of middle management are no longer needed
When might a business choose to decentralise
As they are expanding and choosing to operate in different locations. Decentralised approach create more levels of authority and increases the amount of delegation
What is meant by delayering
Removing parts of hierarchy and creating a more flat and wider span of control
Benefits of delayering
Can help lower costs - cutting management jobs can save money from salaries.
Gives junior employees enhanced rules with more responsibility and can help improve communication
Drawbacks of delayering
Can cost the business money in the short term as the remaining staff will need to be retrained in their new roles. You can overdo it, managers end up stressed and overworked with high spans of control