Organisational Design

• What is organisational design?

  The process of shaping an organisation's structure
• Why is organisational design important for a business?

  It helps meet the organisation's purpose and objectives
• What is typically the structure of a business when it first starts?

  One owner and a couple of staff
• What must owners consider as a business grows?

  Mechanics of the business and its structure
• What does an organisation structure visually illustrate?

  How the business is organised
• What are the key components shown in an organisation structure?

  • Authority and responsibility
  • Individual job roles and titles
  • Accountability relationships
  • Communication routes
• What does organisational hierarchy refer to?

  Levels of authority and accountability
• What does each line in a hierarchy represent?

  A relationship for passing instructions and feedback
• What is the term for the person immediately above you in a hierarchy?

  Line manager
• What is a characteristic of a tall organisational structure?

  It has many levels of hierarchy
• What is a characteristic of a flat organisational structure?

  It has fewer levels of hierarchy
• What are the features of a chain of command?

  • Outlines who reports to whom
  • Defines roles within the organization
  • Facilitates communication flow
• What is the span of control?

  The number of subordinates a manager oversees
• What are the advantages of a wide span of control?

  • Faster decision-making
  • Better communication
  • Lower costs
• What are the disadvantages of a narrow span of control?

  • Slower decision-making
  • More stress for managers
  • Limited supervision
• What factors determine the ideal span of control?

  Manager's experience, business nature, employee skills
• What are the features of a tall structure with a narrow span of control?

  • More promotional opportunities
  • Tight control over subordinates
  • Longer decision-making chains
• What are the features of flat structures with wide spans of control?

  • Fewer layers of management
  • Improved vertical communication
  • Greater responsibility for staff
• What is delayering?

  • Removing levels of hierarchy
  • A strategy for a flatter structure
  • Can improve communication and reduce costs
• What are the advantages of delayering?

  Better delegation, improved communication, reduced costs
• What are the disadvantages of delayering?

  Job losses, disruption, wider span of control
• How are organisational design and organisational structure related?

  • Changes in one affect the other
  • Design defines how departments unify
  • Structure represents authority and relationships
• What is a functional organisational structure?

  Departments organised by different functions
• What is a matrix organisational structure?

  Combines hierarchical and functional approaches
• What influences organisational design and structure?

  • Business objectives
  • Size of organisation
  • Nature of organisation
  • Culture and attitudes of management
  • Skills and experience of workforce
  • External environment
• What are the advantages of matrix organisational structures?

  • Improved decision-making
  • Enhanced communication and motivation
  • Efficient resource sharing
• What are the disadvantages of matrix organisational structures?

  • Confusion over roles and responsibilities
  • Slower processes
  • Power struggles between managers