organisational design Flashcards

1
Q

What is an organisational structure?

A

The way a business is arranged to carry out activities

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2
Q

What are the key elements shown in an organisational structure?

A

Communication routes
Delegation of work
Promotion/career paths
Control and authority
Problem-solving
Specialisation

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3
Q

Define “layers of hierarchy.”

A

the management structure of an organisation, showing who is responsible to whom.

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4
Q

What is the “chain of command”?

A

The path along which communication, instructions, or orders are passed in an organisation.

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5
Q

What is “span of control”?

A

the number of people who answer to a manager:

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6
Q

what are the two types of management

A

Wide span: More delegation and trust in employees.
Narrow span: Tighter control, often in hierarchical structures.

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7
Q

Who is a line manager?

A

The person immediately above an employee, to whom they report.

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8
Q

Who is a subordinate?

A

An employee who reports directly to a line manager.

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9
Q

What is a traditional hierarchical structure?

A

A structure with a series of levels where each has authority and responsibility over the one below.

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10
Q

What are the advantages of a traditional hierarchical structure?

A
  • Centralised control by senior management
  • Clear paths for communication and responsibility
  • Clear understanding of departmental positions
  • Employees know their role in the structure
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11
Q

What are the disadvantages of a traditional hierarchical structure?

A
  • Bureaucratic and slow decision-making
  • Poor inter-departmental communication
  • Can lead to inefficiencies
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12
Q

What is a matrix structure?

A

A structure for cross-functional teams, where members with specialist skills are drawn from different departments for a project.

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13
Q

What are the advantages of a matrix structure?

A
  • Efficient use of specialist skills
  • Improved communication and coordination
  • Encourages innovation and idea sharing
  • Flexible and motivating for employees
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14
Q

What are the disadvantages of a matrix structure?

A
  • Can be expensive (requires extra staff)
  • Communication problems between departments
  • Divided loyalties for employees
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15
Q

What is an entrepreneurial structure?

A

A structure where decisions are made by a few key workers, usually the owner, common in small businesses.

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16
Q

What are the advantages of a flatter organisational structure?

A
  • Increased employee motivation
  • Faster decision-making
  • Quicker communication
  • Empowers employees
17
Q

What are the disadvantages of a flatter organisational structure?

A
  • Departments may not align on objectives
  • Loss of central workforce control
17
Q

What is a centralised organisation?

A

A business where decisions are made by senior managers at the top.

18
Q

What are the characteristics of a centralised organisation?

A
  • Decisions made at the head office
  • Tight control of activities
  • Company-wide strategies
  • Quick decision-making
19
Q

What is a decentralised organisation?

A

A business where authority is passed down to lower levels in the hierarchy for decision-making.

20
Q

What are the characteristics of a decentralised organisation?

A
  • Empowers and motivates staff
  • Decisions made at lower levels
  • Can lack control from head office
  • Slower decision-making
21
Q

What is downsizing?

A

When a business closes or merges parts of its operations to reduce costs and remain competitive.

22
Q

advantages of downsizing

A
  • reduce cost
  • improve efficiency
  • increase survival instead of just closing
23
Q

disadvantages of downsizing

A
  • decrease employee morale
  • redundancy’s
  • reputation hit
  • risk of customer satisfaction
24
Q
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25
Q
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