organisational design Flashcards
What is an organisational structure?
The way a business is arranged to carry out activities
What are the key elements shown in an organisational structure?
Communication routes
Delegation of work
Control and authority
Problem-solving
Define “layers of hierarchy.”
the management structure of an organisation, showing who is responsible to whom.
What is the “chain of command”?
The path along which communication, instructions, or orders are passed in an organisation.
What is “span of control”?
the number of people who answer to a manager:
what are the two types of management
Wide span: More delegation and trust in employees.
Narrow span: Tighter control, often in hierarchical structures.
Who is a line manager?
The person immediately above an employee, to whom they report.
Who is a subordinate?
An employee who reports directly to a line manager.
What is a traditional hierarchical structure?
A structure with a series of levels where each has authority and responsibility over the one below.
What are the advantages of a traditional hierarchical structure?
- quicker decision making
- Clear paths of responsibility
- Clear understanding of departmental positions
- Employees know their role in the structure
What are the disadvantages of a traditional hierarchical structure?
- Bureaucratic and slow decision-making
- Poor inter-departmental communication
- Can lead to inefficiencies
What is a matrix structure?
- an organisational design where employees have dual reporting relationships.
- reporting to both a functional manager and product manager
What are the advantages of a matrix structure?
- efficient use of resources
- Improved communication and coordination
- Encourages innovation
- Flexible and motivating for employees
What are the disadvantages of a matrix structure?
- Can be expensive (requires extra staff)
- Communication problems between departments
- Divided loyalties for employees
What is an entrepreneurial structure?
A structure where decisions are made by a few key workers, usually the owner, common in small businesses.
What are the advantages of a flatter organisational structure?
- Increased employee motivation
- Faster decision-making
- Quicker communication
- Empowers employees
What are the disadvantages of a flatter organisational structure?
- Departments may not align on objectives
- Loss of central workforce control
What is a centralised organisation?
A business where decisions are made by senior managers at the top.
What are the characteristics of a centralised organisation?
- Decisions made at the head office
- Tight control of activities
- Company-wide strategies
- Quick decision-making
What is a decentralised organisation?
A business where authority is passed down to lower levels in the hierarchy for decision-making.
What are the characteristics of a decentralised organisation?
- Empowers and motivates staff
- Decisions made at lower levels
- Can lack control from head office
- Slower decision-making
What is downsizing?
When a business closes or merges parts of its operations to reduce costs and remain competitive.
advantages of downsizing
- reduce cost
- improve efficiency
- increase survival instead of just closing
disadvantages of downsizing
- decrease employee morale
- redundancy’s
- reputation hit
- risk of customer satisfaction
