Organisational design

Question 1

The form a business’ internal structures take depends on what factors

Answer 1

1 view and philosophy of management
2 need for different communication systems
3 the industry in which the business operates
4 the skills of the workforce

Question 2

What factors influence internal structure

Answer 2

1 views of management - democratic style of management encourage workers to take responsibility autocratic style prefer a strict hierarchical structure
2 communication systems - if communications are controlled and monitored the business structure is likely to have many layers and definite paths of responsibility. Where More open and free communication is encouraged business structure is likely to be less hierarchical and more flexible.
3 The industry n- retailing encourages a hierarchical structure with clear cut responsibilities and chains of command. . In other industries eg software development responsibilities and chains of command are less clear and chains of command shorter
4 traditions of the business - often businesses owned by government have a traditional pyramid Other businesses often in the new economy have a less rigid structure with less layers
4 sills of workforce - the more highly skilled the workforce the more likely they are to need less supervision resulting in a flatter open structure where decision making at all levels is

Question 3

What is layers of hierarchy

Answer 3

It is the management structure of the organisation and indicates who is responsible for whom

Question 4

What are chains of command

Answer 4

This are the paths which communication takes place and instructions and orders are passed down

Question 5

What are levels of responsibility

Answer 5

Each layer of hierarchy has its own level of responsibility. The amount of responsibility and freedom to make decisions depends of the control that has been delegated to the which depends of the business structure and the style of management

Question 6

What is span of control

Answer 6

Tells how many workers a manager is responsible for . High levels of delegation mean a e wide span of control workers are trusted to achieve quality and complete tasks without constant supervision

Question 7

What does a traditional hierarchical structure look like

Answer 7

1 Pyramid shaped
2.may only see 3 layers but there will be many levels to the hierarchy
3 span of control is narrow at the top and will widen at the bottom whew supervisors monitor performance
4 at the top are senior management and at the bottom are the shop floor workers in between are middle management and supervisors
5 often referred to as a tall structure

Question 8

What are the advantages of this type of hierarchy

Answer 8

1 control is at the Centre and senior management fully understand who does what and what their responsibilities are
2 paths of communication and responsibility are clearly defined
3 departments understand their position in relation to other departments in the organisation
4 each worker knows how they fit into the organisation structure

Question 9

What are the disadvantages of this type of hierarchy

Answer 9

1 senior management are distanced from those who their decisions impact on
2 vertical communication is difficult - the layers could distort messages and long chains of communication can mean that instructions can be out of date by the time they are received
3 communication between different departments is hampered by the lack of direct contact between departments

Question 10

Describe flatter hierarchical structures

Answer 10

Span of control is wider
Chain command is shorter
There are fewer layers of hierarchy

Question 11

What is delayering

Answer 11

Removing layers of hierarchy and management usually through redundancy

Question 12

Advantages of flatter organisational structure

Answer 12

1 increased motivation as a result of delegation of authority
2 decisions ar made more quickly by those nearest the ground
3 communication is quicker and is less distorted
4 empowerment of workers

Question 13

What are the disadvantages of a flatter organisational structure

Answer 13

1 loss of central control of the workforce
2 different departments may not be working to the same objective

Question 14

What is the matrix structure

Answer 14

Attempts to organise management of different tasks in a way that cuts across traditional departmental boundaries

Question 15

What are the advantages of the matrix structure

Answer 15

1 it allows people with specific skills to contribute to a number of projects
2 it breaks down barriers to communication and ensures projects are Bette coordinated
3 it helps ideas and innovations spread through the business
4 more efficient use of Human Resources - it improves flexibility and motivates employees

Question 16

What are the disadvantages of the matrix structure

Answer 16

1 defining what each employees responsibilities are is difficult
2 can be an expensive way to manage a project as extra ice and staff may be needed
3 coordinating staff from different departments may be difficult as cultures and methods of operating in each department may differ.