Organisational Design Flashcards
What does Hackman and Oldhams model contain
5 characteristics which predict job satisfaction
Skill Variety
- How many skills and talents the task/ job requires from the employee
- the more variety, the bigger chance of job satisfaction
Task Identity
- Does the employee know what they’re doing
- Do they know when the task will be finished?
Task Significance
Does the job have an impact? Does the job matter and is it meaningful? Staff may be unmotivated if their task is useless
Autonomy
How much freedom the employee has to complete their tasks
Do they get involved in decision making?
Job Feedback
Employee is regularly given feedback, either constructive criticism to help them improve, or good feedback which will give the employee confidence in what they’re doing, so they know they’re doing well
Centralised organisation
where most decisions are taken by senior managers and then passed down the organisational hierarchy. This structure relies on having strong and competent managers.
Pros of centralised organisations
Lead to greater uniformity within the organisation as each branch of the business will be using standardised procedures.
Decision making is fast
Cons of centralised organisations
often less responsive to localised external pressures. It can also lead to demotivated staff who are not being given the opportunity to be involved in the decision-making process.
Decentralised organisation
Authority is delegated down the chain, into different departments
Pros of decentralised organisation
-Each department within the organisation has the authority to make their own decisions. The business will be more responsive to changes in individual/local markets as staff in each department have a greater local knowledge.
Employees will be more motivated as they are given the opportunity to make decisions and be creative.
Cons of decentralised organisations
- Poor decision making as branch managers may not be as experienced as the managers in the head office.
- Individual branches may begin to compete and the overall corporate culture may be harder to develop.
- Slows down speed of decision making
Delegation
The assignment to others of the authority for particular functions, tasks, and decisions.
Pros of Delegation
Reduces management stress and workload
Allows senior management to focus on key tasks
Subordinates are empowered and motivated
Better decisions or use of resources (potentially)
Good method of on-the-job training
Cons of delegation
Cannot / should not delegate responsibility
Depends on quality / experience of subordinates
Harder in a smaller firm
May increase workload and stress of subordinates
