Organisational design Flashcards
What is organisational design
The framework that provides a business with a structure to achieve its objectives
What is organisational structure
The way in which the workforce within a firm is organised, including job roles and communication flows
What are organisational charts
Visual representations of the organisational structure
What is authority
The power of an employee to instruct subordinates, make decisions and control the use of resources
What is centralised authority
Maintained by a few at the centre of the organisation
What is decentralised authority
Spread across the organisation
What is responsibility
When an employee has a duty to ensure a task is carried out to an acceptable standard
What is the chain of command
The way that authority and power is passed down the levels of the hierarchy, starts at the top and works its way down, the longer the chain of command the slower communication and potentially decision making, it is important that communication flows up and down
What is the span of control
The number of subordinates that a manager or supervisor is directly responsible for
What is a wide span of control
If a manager has many subordinates
What is a narrow span of control
How does the size of span of control effect supervision
A narrower span of control will result in higher levels of supervision as there is less subordinates to oversee
What is delegation
The passing of authority down the hierarchy
What are the benefits of delegation
Free up management time, motivate workers (job enrichment), decisions are made closer to grass roots
What is hierarchy
The structure of the workforce within an organisation showing who is accountable to whom
When does a tall and thin structure occur
Where each superior is responsible for a few subordinates allowing for closer supervision and communication between the two levels
When does a wide and flat structure occur
Each superior is responsible for a large number of subordinates, requires greater delegation but fewer levels allowing for quicker communication through the firm
What is centralisation
When the responsibility for decision making is maintained, by a limited number of senior managers, at the top of the hierarchy
What are the features of centralisation
Few decision makers, decisions are made at the top of the hierarchy, speeds up decision making, maintains tight control and is a bureaucratic system
What is decentralisation
When the responsibility for decision making, decisions made at many levels within the hierarchy
What are the features of decentralisation
Delegates decision making, decisions made at many levels, frees up management time, motivates and reduces bureaucracy
What is empowerment
Delegating responsibility to employees, allowing them to use their abilities and to have a greater say in the decision making process
What is delayering
Reducing the levels in the hierarchy and hence chain of command by removing levels of management
What are the influences on delegation, de/centralisation
Attitude to leadership, organisational design, nature of decisions, legal form, objectives, response to change in tech and degree of confidence in the economy
What is a matrix structure
Where teams are put together from different functional areas to work on specific projects
What are the advantages of a matrix structure
Communication across functional areas, range of view points, functions understand and support each other and its motivational
What are the disadvantages of a matrix structure
Potential loss of control, dependent upon effective delegation, takes time to be familiar with each other and could potentially cause conflict
