Organisational Design (T1)

Question 1

What is an Organisational Design?

Answer 1

This shows the roles and relationships within an organisation between different people and functions…

Question 2

What is a Hierarchy?

Answer 2

This is a system in which employees are ranked based on their status and authority…

Question 3

What is the Chain of Command?

Answer 3

This is the flow of authority and information within an organisation…

Question 4

What is the Span of Control?

Answer 4

This is the number of subordinates (operatives) overseen by managers…

Question 5

What is delegation?

Answer 5

This happens when a manager delegates authority to a subordinate…

Question 6

What is the key difference between a Flat Structure and a Tall Structure?

Answer 6

Flat Structures have few layers of hierarchy…
Tall Structures have many layers of hierarchy…

Question 7

4 features of a Flat Hierarchy…

Answer 7

1. Wider Spans of Control meaning each manager has less subordinate and so delegation is necessary…
2. More delegation gives staff greater responsibility….*
3. Fewer levels of hierarchy = Improved vertical communication and less wage overheads…

*some staff may actually feel overstretched and stressed depending on the amount of authority delegated…

Question 8

4 features of a Tall Structure…

Answer 8

1. Narrow Spans of Control meaning each manager can supervise their subordinates more closely…
2. Less delegation opportunities due to narrow spans of control reducing stress levels amongst workers who may feel overstretched…
3. More levels of hierarchy provide more promotional opportunities…*

*This can increase wage costs!