1.4.3 organisational design

• what is organisational design

  the framework that provides a business with a structure to achieve its objectives
• what is organisational structure

  the way in which the workforce is organised
• what is the hierarchy

  the structure of the workforce within an organisation showing who is accountable for whom
• when do tall and thin structures occur

  when each superior is responsible for a few subordinates, this allows for closer supervision and communication
• when do wide and flat structures occur

  when each superior is responsible for a large number of subordinates, this requires greater delegation but fewer levels which allows for quicker communication
• what is chain of command

  the way that authority and power us passed down the hierarchy
• when will the chain of command be longer

  when there is more hierarchy
• what does span of control show

  the number of subordinates that a manager or supervisor is directly responsible for
• what is a wide span of control

  when a manager has many subordinates
• what is a narrow span of control

  when a manager has few subordinates
• what is authority 


  the power of the employee to instruct subordinates, make decisions an d control the use of resources
• what is centralised authority

  when it is monitored at the centre of the organisation
• what is decentralised authority

  when it is spread across the organisation
• what are the advantages of a tall structure

  more opportunities for promotion, more supervision
• what is a tall structure

  when there are many Levels of hierarchy and a long chain of command
• what are the disadvantages of a tall structure

  slower communication and higher labour costs
• what is a flat structure

  when there are few levels of hierarchy and shirt chains of command
• what are the advantages of a flat structure

  can quickly adapt to changes and quicker communication
• what are the disadvantages of a flat structure

  less promotion opportunities and a heavy workload for supervisors
• what is a matrix structure

  one where teams are put together from different functional areas to work on specific projects
• what are the advantages of a matrix structure

  range of view points are considered, functions support and understand each other, its motivational
• what are the disadvantages of a matrix structure

  potential loss of control, dependent upon effective delegation, can cause conflict