organisational design

Question 1

what is organisational design

Answer 1

refers to how a organisation has structured its activities
(look at eg of organisational chart)

Question 2

advantages of using organisational charts?

Answer 2

shows clear reporting structure
makes planning easier
helps visualise workload of individuals

Question 3

what is a hierarchical structure?

Answer 3

layered pyramid like structure that depicts inner relationship between departments

Question 4

what characteristics are seen in a hierarchical structure?

Answer 4

senior people at top
shows chain of command
splits into different functional areas

Question 5

disadvantages of using organisational structure?

Answer 5

outdated one is useless needs to stay up to date
individuals may take narrow idea of their job
decreased exchange of ideas if structure is rigid as it will lack good communication

Question 6

advantages of organisational structure having wide span of control

Answer 6

work better delegated so more freedom
improved motivation
less supervision needed so cost of production lowered

Question 7

disadvantages of organisational structure having wide span of control

Answer 7

increased workload
increased stress as lots of employees to look over
employees can get lazy if not supervised

Question 8

advantages of organisational structure having narrow span of control

Answer 8

quicker communication
supervised quickly
better co-ordination between workers

Question 9

disadvantages of organisational structure having narrow span of control

Answer 9

no motivation as little freedom
more costly as supervisors needed

Question 10

what is a hierarchy

Answer 10

levels of management showing chain of command as u go down authority is reduced

Question 11

advantages of having a tall hierarchy structure

Answer 11

more promotional opportunities
less delegation so less stress
tight control can be kept

Question 12

disadvantages of having a tall hierarchy structure

Answer 12

more layers mean more staff so business has high overheads

decisions can take longer

ineffective communication

Question 13

advantages of having small hierarchical structure?

Answer 13

more delegation could increase staff motivation
decisions made faster
staff have greater freedom to make decisions

Question 14

disadvantages of having small hierarchical structure?

Answer 14

managers have less time for each subordinate and may neglect them
fewer chances for promotion

Question 15

what is centralised structures?

Answer 15

majority of the decisions remain responsibility of few at top of hierarchy

Question 16

advantages of centralised structures?

Answer 16

easy to implement policies
EOS easier to achieve
prevents parts of business becoming independent

Question 17

disadvantages of centralised structures?

Answer 17

risks demoralising managers who feel powerless
management disconnected from day to day work
decisions delayed as fewer people working on it

Question 18

what are decentralised structures?

Answer 18

decision making load is shifted down through organisation

Question 19

advantages of decentralised structure?

Answer 19

reduces burden for management
improves levels of customer service
improves staff motivation

Question 20

disadvantages of decentralised structure?

Answer 20

decision making is not always strategic
may be some de-EOS
harder to achieve tighter financial control

Question 21

what are the consequences if business is inappropriately structured

Answer 21

slow decision making causing loss in competitive advantage
de-motivated employees high labour turnover
lack of co-ordination leading to duplication of work

Question 22

what is outsourcing?

Answer 22

delegation of business processes to an external provider who then manages the procedures to good standard

Question 23

advantages of outsourcing?

Answer 23

cost efficient - provider may offer service cheaper than doing it themselves
quality - specialist is likely to improve product
professional - provide professional service for benefit of staff and customers increasing motivation

Question 24

disadvantages of outsourcing?

Answer 24

costly - may not offer service in a cost efficient way
low quality - may not be able to provide service to a higher standard leading to possible customer complaints
poor reputation - business stressed if service will be down ok

Question 25

what factors does business need to consider before outsourcing

Answer 25

quality - will specialist do better job than them
cost - might be cheaper as they don’t need to make a profit
speed - will there be much difference
flexibility - suppliers likely to have greater capacity