Organisational design

• Hierarchy business structure 


  A series of levels, where each level has responsibility for and authority over the levels below (can be shown on an organisational chart)
• Chain of command 


  The path of communication and authority up and down the hierarchy
• Span of control

  The number of people who report directly to a manager (flat structure = wide span of control, tall structure= smaller span of control)
• What does it mean by a tall organisational structure?

  • Lots of levels of hierarchy
  • Long chains of command
• What are the advantages of a tall organisational structure?

  • More opportunities for promotion which can be motivating for employees
  • Higher degree of supervision as each line manager has a limited number of people they’re responsible for
• What are the disadvantages of a tall organisational structure?

  • Span of control is narrow and chain of command is long making communication and instructions slower
  • Decision making is slower due to lots of layers and paperwork
• What does it mean by a flat organisational structure?

  • Few layers of hierarchy
  • Short chains of command
• What are the advantages of a flat organisational structure?

  • Lines of communication are short making decision-making much quicker
  • Staff can be empowered to work independently and take on more responsibility
• What are the disadvantages of a flat organisational structure?

  • Wide span of control meaning tasks must be delegated so employees could feel stressed
  • Less promotion opportunities which may decrease staff as they may join other organisations
• What is meant by a matrix organisational structure?

  Structure that organises staff by two different criteria (usually if operations are project-based)
• What are the advantages of a matrix organisational structure?

  • Ensures staff are pursuing clearly, defined objectives
  • Encourages departments to build relationships with one another leading to increased employee motivation + efficiency
• What are the disadvantages of a matrix organisational structure?

  • May lead to conflict eg, different ideas of how a strategy should be implemented