Unit 16 - Organisational Design

Question 1

Def: authority

Answer 1

The right to command and make decisions

Question 2

Def: centralisation

Answer 2

A type of business organisation where major decisions are made at the centre or core of the organisation and then passed down the chain of command

Question 3

Def: chain of command

Answer 3

The way authority and power is organised in an organaisation

Question 4

Def: decentralisation

Answer 4

A type of business organisation where decision makeing is pushed down the chain of command

Question 5

Def: delayering

Answer 5

Removing layers of management from hierarchy of an organisation

Question 6

Def: delegate

Answer 6

Authority to pass down from superior to subordinate

Question 7

Def: formal organisation

Answer 7

Internal structure of a business as shown by an organisational chart

Question 8

Def: hierarchy

Answer 8

Order or levels of responsibility in an organisation from low to high

Question 9

Def: organisational chart

Answer 9

Diagram that shows different job roles in a business and how they relate to each other

Question 10

Def: responsibility

Answer 10

The duty to complete a task

Question 11

Def: span of control

Answer 11

Number of people a person is directly responsible for

Question 12

Def: subordinates

Answer 12

People in hierarchy that work under the controle of a senior worker

Question 13

What do organisational charts look like and contain

Answer 13

General manager
I
__________________________________
I I I
Booking. Maintenance Marketing

Split into divisions or departments
Role of employees
Who has responasbility
Communication channels
Span of control

Question 14

Roles in organisational hierarchy

Answer 14

Directors
Managers
Team leaders
Supervisors
Professionals
Operatives
General staff

Question 15

Advantages of decentralisation

Question 16

Advantages of decentralisation

Answer 16

Employers more motivated
Reduced stress on senior management
More flexibility

Question 17

Advantages of centralisation

Answer 17

Senior management have more control
Senior management better suited to make decisions more experienced
Communication may improve if there are fewer decision makers

Question 18

Advantages of centralisation

Answer 18

Senior management have more control
Senior management better suited to make decisions more experienced
Communication may improve if there are fewer decision makers

Question 19

Types of organisational structures and what they look like

Answer 19

TALL STRUCTURE

                     O
                      I
      —————————
     I                                   I
  O.                                  O
   I.                                    I ————                         ———— I.     I.     I.                       I.     I.      I O.  O.    O.                         O.  O.     O

SHORT STRUCTURE

                     O
                      I
    ——————————
   I                  I                   I
  O                 I                  O
    ——————————
    I        I        I         I        I    
   O.     O.     O.      O.     O.    

MATRIX STRUCTURE

                              Production.                  Marketing.              HR.              Accounting Project manager            I.                                    I.                         I.                         I

Project manager I. I. I. I.

Question 20

Implications of organisational structures

Answer 20

Tall- span of controle small - more closely supervised
- might motivate staff but manager costs increases
- communication can be poor
- close controle can demotivate

Flat- communication is better- short chain of command
- management costs lower
- decision making faster as not many approvals layers
- may be more motivated
- managers may lose control
- may lack discipline

Matrix- based on skills of employees
- flexible and motivational
- more expensive
- can create instability