Organisational design(1.4.3) Flashcards
What is an organisational structure?
defines roles responsibilities and reporting lines
choosing the right structure supports efficient operations clear communication and accountability
Organisational chart diagram
What is chain of command?
person with most authority at top
person with least authority at bottom
What is span of control?
number of people that each manager is responsible for
Spans of control
each manager should supervise a manageable number of staff to perform roles efficiently
limiting span of control often requires more levels of hierarchy with organisation
larger organisations may have multiple levels including senior managers regional managers and supervisors
higher levels in the hierarchy come with greater power responsibility and pay
What determines span of control
nature of the work involved (e.g need for supervision)
degree of autonomy granted to employees (hackman/oldham)
number of layers in the hierarchy flatter structures have encourage wider span of control
Narrow span of control
allows for closer supervision of employees
more layers in the hierarchy may be required
helps more effective communication
Wide span of control
gives subordinates the chance for more autonomy
more appropriate if labour costs are significant-reduce number of managers
consistent with flatter structures
Centralised organisation
decision making authority is concentrated at the top of the organisation with senior management making most decisions
ensures consistency in decision making and alignment with organisational goals
however sometimes lead to slower responses to local issues and reduce employee autonomy at lower levels
Decentralised organisation
decision making authority distributed throughout organisation allowing lower level employees to have more decision making power
can promote flexibility and innovation as employees closer to operational level can respond quickly to change and opportunities
What is delegation?
the process by which a manager or leader assigns tasks or responsibilities to a subordinate while retaining overall accountability for the outcomes
Delegation
key management skill that helps improve efficiency empower employees and allow managers to focus on higher level tasks
not just assigning tasks requires passing down decision making power and responsibility to subordinates
Tall organisational structure
multiple levels of management and more centralised decision making process
long chain of command
can provide clear authority and accountability
may result in slower communication and decision making due to the many layers
Tall organisational structure advantages
more availability to get promoted
promotes specialisation and expertise with each department
clear authority/defined roles increased productivity efficiency and decision making
Tall organisational structure disadvantages
strained communication-upper/lower levels
longer decision making-must pass through different management layers
excessive management positions-unnecessary-increased labour costs
decreased productivity efficiency
Flat organisational structure
fewer levels of management and a more decentralised decision making process
short chain of command
quicker communication and decision making
Flat organisational structure advantages
promotes fairness and collaboration=open communication
faster/more efficient decision making
encourages innovation and creativity-employees have autonomy flexible
increased motivation
Flat organisational structure disadvantages
role ambiguity (not certain)-lack of hierarchy and direction
no clear route for promotion-demotivate workers less recognition of workers
employees need to be very flexible-multiskilling burnout less motivate
Matrix organisational structure
designed around specific products or projects
combine functional areas of a business with a specialist team that operates within the organisation
allows for collaboration across different departments and ensures a focused approach to achieving project or product goals
Matrix organisational structure diagram
