1.4.3 - Organisational Design

• What does hierarchy describe in an organization?

  Ranking of positions from top to bottom
• How does position in the hierarchy relate to authority?

  The higher the position, the more authority it holds
• What are the three levels typically included in a hierarchy?

  Top-level management, middle-level management, lower-level employees
• What is the chain of command in an organization?

  Formal line of authority from top to bottom
• What does the chain of command help establish?

  Clear communication channels and accountability
• What is span of control?

  Number of employees a manager can manage
• What does a narrower span of control indicate?

  More layers of management exist
• What does a wider span of control indicate?

  Fewer layers of management exist
• What characterizes a centralized structure?

  Decision-making authority at the top
• What is a benefit of centralization?

  Promotes consistency and control
• What characterizes a decentralized structure?

  Decision-making authority distributed throughout
• What is a benefit of decentralization?

  Promotes flexibility and innovation
• What are the characteristics of a tall organizational structure?

  • Multiple levels of management
  • Centralized decision-making
  • Long chain of command
  • Common in large organizations
• What are the advantages and disadvantages of a tall organizational structure?

  Advantages:

  • Clear hierarchy and defined roles
  • Promotes specialization and expertise
  • Opportunities for promotion

  
  

  Disadvantages:

  • Communication difficulties
  • Slow decision-making
  • Bureaucracy and excessive management
• What are the characteristics of a flat organizational structure?

  • Fewer levels of management
  • Decentralized decision-making
  • Short chain of command
  • Common in small organizations
• What are the advantages and disadvantages of a flat organizational structure?

  Advantages:

  • Promotes collaboration and communication
  • Faster decision-making
  • Encourages creativity and innovation

  
  

  Disadvantages:

  • Ambiguity in hierarchy
  • Fewer promotion opportunities
  • Potential for employee burnout
• What characterizes a matrix organizational structure?

  • Built around specific products or projects
  • Combines functional areas with specialist teams
  • Promotes cross-functional collaboration
• What are the advantages and disadvantages of a matrix organizational structure?

  Advantages:

  • Promotes collaboration and communication
  • Allows for specialization
  • Efficient resource allocation

  
  

  Disadvantages:

  • Conflicts over priorities
  • Confusion over roles
  • Requires high communication and coordination