Organisational Structure

• What is the purpose of organisational design?

  To increase chances of meeting aims and objectives
• What must leaders consider when planning organisational design?

  Several factors including authority and hierarchy
• What is authority linked to in an organisation?

  Delegation
• What does delegation involve?

  Passing authority to employees lower in hierarchy
• How can authority affect employees?

  It can motivate and empower them
• What are spans of control?

  Number of people reporting to a supervisor
• How do tall hierarchies affect spans of control?

  They have narrower spans of control
• What is a characteristic of flat hierarchies?

  They have wider spans of control
• How does monitoring differ between tall and flat hierarchies?

  Tall hierarchies allow closer monitoring
• What are hierarchies in an organisation?

  Levels and layers of management
• What is a challenge of tall hierarchies?

  Communication can be more difficult
• What advantage do tall hierarchies provide?

  More promotional opportunities for employees
• What does delegation refer to?

  Passing responsibility for authority to an employee
• How can delegation benefit managers?

  It reduces their workload
• How can delegation empower employees?

  It prepares them for future promotions
• What may delegation require from a business?

  Investment in employee training
• What do centralisation and decentralisation refer to?

  Decision-making power within the business
• How is decision-making structured in centralised businesses?

  Held by a small number of people
• How is decision-making structured in decentralised businesses?

  Distributed to staff with appropriate skills