organizational design

Question 1

what is the span of control?

Answer 1

describes the number of people directly under the supervision of a manager
- if managers have a very wide span of control they are directly responsible for more staff

Question 2

Advantages of narrow span of control

Answer 2

1) allows close management supervision, vital for inexperienced staff if labour turnover is high
2) communication may be excellent with the small immediate team
3) many layers of hierarchy means chances for promotion therefore staff can do a different job which increases motivation

Question 3

Disadvantages of narrow span of control

Answer 3

1) workers may feel over supervised and therefore not trusted, which may cause staff to leave
2) communication may suffer as a narrow span means more layers of hierarchy, vertical communication is harder

Question 4

what is a chain of command?

Answer 4

shows the reporting system from the top of the hierarchy to the bottom

Question 5

what happens if there is a long chain of command?

Answer 5

• an organisation with several layers = long chain of command
• creates a gap between workers and managers more chance of promotion
• information has to travel via several people chance that it may be distorted

Question 6

what is a centralised structure?

Answer 6

decision making power and control remains in the hands of the top management levels

Question 7

what is a decentralised structure?

Answer 7

delegates decision making power to workers lower down the organisation

Question 8

1 advantage and 1 disadvantage of centralised structure

Answer 8

decisions are made at the top
restricting autonomy for local managers
but giving consistency to customers

Question 9

1 advantage and disadvantage of a decentralised structure

Answer 9

decisions are made locally closer to customers
giving local managers more responsibility
make staff more motivated

Question 10

what is a tall structure?

Answer 10

many layers and narrow span of control

- lots of layers of management therefore all responsible for a few people

Question 11

advantages of a tall structure

Answer 11

• carefully supervised = avoid mistakes
• many layers of hierarchy, plenty levels of promotion
• communication is good at the immediate level

Question 12

disadvantages of a tall structure

Answer 12

• expensive to run as the business needs to pay management salaries
• a long chain of command = communication is slow and distorted
• staff feel over supervised and nit trusted

Question 13

what is a flat structure?

Answer 13

fewer levels of hierarchy and wider spans of control

Question 14

advantages of flat structure

Answer 14

• communication is speedy and direct therefore speedy decision making
• huge help with service sector daily touch with the customer giving them insights
• a wide span which gives employees the flexibility to do their own things their own way = motivating as workers thrive independently, reduce overhead costs, greater business efficiency

Question 15

disadvantages of flat structure

Answer 15

• a wide span of control = every boss is in charge of many employees therefore it is impossible to supervise everyone closely so more mistakes are likely to happen

Question 16

what is a matrix structure?

Answer 16

individuals can work across teams and projects as well as within their own department

Question 17

advantages of matrix structure

Answer 17

• working together, expertise from each department

- working together should be quicker and speed is vital for competitive advantages

Question 18

disadvantages of matrix structure

Answer 18

• 2 bosses unclear on whose order to take

- staff may be in disagreement

Question 19

what happens if there is poor organisations structure?

Answer 19

• mistakes
• duplication of tasks
• tasks being overloaded
• departments failing to work together