Organisational design Flashcards
what is organisational design
This refers to the process of aligning the structure of a business organisation with its stated objectives to ensure improved efficiency and effectiveness.
the process of shaping an organisations structure so that it meets the organisations purpose and help deliver its objectives
what does organisational design depend on
- The size of a business
- Span of control (short long)
- Chain of command
- Delegation
- Policies and procedures
How does a size of a business effect its design
if they have increased business activities with an increased workload there will be an increased need to communication and control forcing them to need a logically designed hierarchy.
how does chain of command affect a businesses design
if there is a large number of staff under supervision of a manger there will be an organisational design to create links between employees and managers allowing for under-staffing to be avoided
what is a centralised structure
this is where authority, power and decision making responsibilities remain to the senior management team
what is a decentralised structure
where power, authority and decision making are delegated to staff at lower levels of the business structure
What is a tall organisational structure
this exists in a business with many hierarchical layers of management with fewer staff under their control allowing more of a chance of promotion
what is a flat organisational structure
this exists in a business with few hierarchical layers of management with a large number of people under their control
what is outsourcing
this is where a business uses the expertise of a service company (another business with specialist services) in order to undertake business functions.
what are the advantages of outsourcing
- Its cost effective as they dont have to pay for training or wastage due to specialism
- Its high quality due to service
- Good reputation the service company would have an excellent reputation
what are the disadvantages of outsourcing
- It can be expensive
- low quality, service company could be bad
- poor reputation
what does span of control mean
the number of subordinates a manger is required to supervise directly
what are the benefits of delegation
- free up management time as they dont have to look after as many people
- motivation allowing subordinates greater job satisfaction as they have a say in decision making
- flexibility as there can be a quicker response to changes in the business.
What are the limitations of delegation
- Less common in smaller firms.
- customer expectations
- attitude towards managers
- quality of staff
- crisis situations
