1.4.3 "Organisational design"

• What does organisational design refer to?

  A diagram showing authority and hierarchy
• What is hierarchy in a business?

  A system ranking employees by status
• What does chain of command mean?

  Flow of information and authority
• What is span of control?

  Number of subordinates a manager oversees
• What does centralised mean in organisational design?

  Management at one central head office
• What does decentralised mean in organisational design?

  Organisation divided into separate areas
• What is a flat structure?

  A hierarchy with few layers and wide control
• What is a tall structure?

  A hierarchy with many layers and narrow control
• What is a matrix structure?

  A hierarchy grouped by project and function
• What is authority in an organisation?

  Power to give orders
• What is delegation?

  Passing a job order to a subordinate
• What are the key components of hierarchy in a business?

  • Employees ranked by status and authority
  • Top: more important, earn more, more power
  • Bottom: less important
  • Key point: work your way up
• What does chain of command entail in an organisation?

  • Flow of information, power, and authority
  • Those at the top have more power
  • Delegation of tasks to subordinates
• How does span of control affect hierarchy?

  • Small span: tall hierarchy, specialized jobs
  • Wide span: flat hierarchy, more responsibility
• What are the differences between decentralisation and centralisation?

  • Decentralisation: divides organisation into areas, separate budgets
  • Centralisation: one central office, shared budget
• What does an organisational chart display?

  • Names of departments
  • Job roles
  • Responsibilities and accountability
  • Lines of authority
  • Lines of communication flow
  • Chains of command
• What are the advantages and disadvantages of a tall structure?

  Advantages:

  • Small span of control
  • Managers know subordinates well
  • Opportunities for promotion

  
  

  Disadvantages:

  • Inflexible structure
  • Slow communication
  • Expensive to maintain
• What are the advantages and disadvantages of a flat structure?

  Advantages:

  • Fast communication
  • Greater responsibility for staff

  
  

  Disadvantages:

  • Staff may become overstretched
  • Possible power struggles
• What are the advantages and disadvantages of a matrix structure?

  Advantages:

  • Ideal for project-based work
  • Flexible structure

  
  

  Disadvantages:

  • Coordination problems
  • Conflicts of interest
• How do different organisational structures impact business efficiency and motivation?

  • Matrix: efficient for multiple projects, motivating
  • Tall: slow communication, promotion opportunities
  • Flat: efficient involvement in rota writing
• What is a potential issue with communication in a tall structure?

  Communication is slow due to many layers
• What can motivate staff in a tall structure?

  Opportunities for promotion
• How can flat structures affect staff workload?

  Staff can become overstretched or overworked
• What is a potential conflict in a matrix structure?

  Conflicts of interest across projects
• What is a benefit of a matrix structure for staff?

  Exploits specific skills of staff
• What is a disadvantage of a flat structure regarding management?

  Managers may lose touch with staff
• What is a characteristic of a flat structure?

  Wide span of control and short chain
• What is a characteristic of a tall structure?

  Long chain of command and small span
• What is the impact of a flat structure on communication?

  Communication flows quickly
• What is the impact of a matrix structure on employee roles?

  Staff can jump between different roles