Improving Organisational Design

Question 1

What does organisational design show

Answer 1

Shows structure and hierarchy

Question 2

What does and organisational chart set out

Answer 2

Sets out who has authority and responsibility to make decisions

Question 3

Organisational chart structure from top to bottom

Answer 3

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

Question 4

What are organisations with lots of levels in the hierarchy called

Answer 4

Tall

Question 5

What sort of chains of command do tall structures get

Answer 5

Long chains of command

Question 6

What is meant by the chain of command

Answer 6

The path of communication and authority up and down the hierarchy

Question 7

Link with tall structures and communication

Answer 7

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

Question 8

What do flat structures consist of and what does this allow workers to have

Answer 8

Only few levels of hierarchy - workers have more responsibility and freedom

Question 9

Flat structures can lead to managers getting ……

Answer 9

Overwhelmed

Question 10

What is meant by the span of control

Answer 10

Number of people who report directly to the manager

Question 11

Managers in a flat structure have a ….. Span of control

Answer 11

Wide span of control ( a lot of people report back to them

Question 12

Managers in tall structure have a ….. span of control (what does this allow them to do)

Answer 12

Narrow - they aren’t responsible for too many people. This allows them to monitor the people below them more closely

Question 13

What may happen if span of control is too narrow

Answer 13

Workers can become de motivated and they may feel they’re being micromanaged

Question 14

What does delegation rely on

Answer 14

Trust between the two parties

Question 15

What is delegation

Answer 15

Giving responsibility for decision making to people below you

Question 16

Characteristics of good mangers when delegating

Answer 16

Knowing the strengths and weaknesses of the people below them when delegating work to right employees

Question 17

Who are all decisions made by in centralised structures

Answer 17

By senior managers at the top of a business

Question 18

Advantages of centralisation

Answer 18

• 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

Question 19

Disadvantages of centralisation

Answer 19

• 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

Question 20

Who gets authority in decentralised structures

Answer 20

Shares authority to more junior employees

Question 21

Advantages of decentralisation

Answer 21

• 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

Question 22

Disadvantages of decentralisation

Answer 22

• 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

Question 23

What factors may determine whether a business will want to choose a centralised or decentralised approach

Answer 23

The size nature objectives and culture of a business

Question 24

When might a business centralise

Answer 24

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

Question 25

When might a business choose to decentralise

Answer 25

As they are expanding and choosing to operate in different locations. Decentralised approach create more levels of authority and increases the amount of delegation

Question 26

What is meant by delayering

Answer 26

Removing parts of hierarchy and creating a more flat and wider span of control

Question 27

Benefits of delayering

Answer 27

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

Question 28

Drawbacks of delayering

Answer 28

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