ORGANISATIONAL DESIGN Flashcards
What is organisational design
Organisational design is the way in which the workforce in a business is arranged in terms of job roles and communication flows.
What is organisational design also referred to
Also referred to as organisational structure.
Example of organisational design
https://docs.google.com/document/d/1F31A6pqHSWGJ8L20ZPtuh1OUQUFzXUOsya9LXh7razI/edit
In this example the organisation has been broken down by structure - the manager manages all of the functional areas (Finance, marketing, operations, human resources) - The ones at the top are known as the board of directors, they are the people in charge. In this example all of the directors have 4 managers below them. And each of these managers are managing a team of 8. - It shows who is responsible for who in the organisation.
What does aorganisational design represent
Their are different ways of doing this, but the organisational chart is a visual representation of how a business is managed
What doe organisational charts show
The different job roles in an organisation
The organisation of different functions (how the different functions are organised - Is the business organised by region, or is it organised by directors and managers etc)
Chains of command/ line management - In the first example you can see that the finance manager is managing the financial team, so that is the chain of command)
Managerial spans of control - The number of people each manager is managing
Official communication channels - How communication should travel from the top to the bottom, and the bottom to the top - If an employee wants to get in contact with one of the board directors, they would have to get in contact with one of their managers to get in contact with one of the board directors (they could find it themselves, but the official way to do it is the way i stated)
What does levels of hierachy mean
The number of layers of employees within an organisational structure (first example has 4, second has 3)
What does span of control mean
The number of subordinates that a manager is in direct control of - For example the finance director is in direct control of 4 subordinates, and the finance managers are in direct control of 8 subordinates.
