organisational design Flashcards
Organisation Structures
the way in which a business is arranged to carry out its activities.
Shows-> communication routes, delegation, promotion/ career path, control, problem solving, specialisation.
Levels of hierarchy
who is responsible for who
Chain of command
paths that communication takes
Levels of responsibility
freedom to make decisions
Span of control
No. of subordinates answerable directly to a manager
Line manager
the person who is immediately above the employee
Subordinate
the person immediately below the line manager
Independent structure
an obvious structure in organisations, lawyers, doctors, accountants (team)
Traditional structure
each level has responsibility and authority over the levels below
🙂- control is at the centre, clearly defined paths, understanding of position
☹- can be bureaucratic, may be slow to respond to customers, poor communication between departments
Matrix structure
often used when cross-functional teams are created to run a project (get people with specialist skills to work in a team)
🙂-contribute to a number of different projects, breaks down communication barriers, innovation
☹- expensive support systems, co-ordination/ communication problems
Entrepreneurial structure
a few key workers at the core of the business- make all major decisions.
☹- issue of workload amount
Centralised organisation
the majority of decisions are taken by senior managers.
*decisions made at head office
*tight control on activities
*quick decision making
*can demotivate staff
Decentralised organisation
authority has been passed down to lower levels in the hierarchy for decision-making (key decisions made by lower staff)
*motivates staff
*good communication
*lack of direction
Downsizing
closes down or merges aspects of their operations in order ti reduce costs and remain competitive
Tall Organisation
long chain of command, many levels of hierarchy and narrow spans of control
*close control over employees
*companies are delayering removing levels of hierarchy
Flat Organisation
has a short chain of command, few levels of hierarchy and wide spans of control. Employees operating with more independence
🙂- increased motivation- delegation of authority, decisions made quicker, empowerment of employees
☹- different departments may not be working on the same objectives, loss of central control
