organisational design

• What does organisational structure refer to?

  Relationship between people and functions in an organisation, both horizontally and vertically
• What is an organisation chart?

  A diagram showing authority lines and layers of hierarchy in an organisation
• What do organisational charts illustrate?

  Lines of authority and layers of hierarchy
• What are the key features shown in organisational charts?

  • Design of the organisation
  • Chain of command
  • Functions and divisions fit together
  • Who is answerable to whom
  • Span of control in each division
  • Official channels of communication
• What do levels of hierarchy show in an organization?

  Number of supervisory and management levels
• How can many levels of hierarchy affect a large business like Tesco?

  It can cause slow communication
• What does the chain of command illustrate?

  Reporting system from top to bottom
• What is the purpose of the chain of command in an organization?

  Shows the route through which information travels
• How does a longer chain of command affect communication?

  Creates a gap between bottom and top workers
• What can happen to information traveling through a long chain of command?

  It may become distorted
• What does span of control refer to?

  Number of subordinates a manager has
• If Manager A has a span of control of two, who are they supervising?

  Supervisor B and Supervisor C
• What are the advantages of a narrow span of control?

  • Allows close supervision
  • Excellent communication within small teams
  • Easier promotions due to many rungs
• What are the disadvantages of a narrow span of control?

  • Workers may feel over-supervised
  • Communication may suffer in the business
  • Restricted scope for initiative and experimentation
• What happens if managers have wide spans of control?

  They are responsible for many staff
• What communication problems may arise from a wide span of control?

  Workers may not feel guided enough
• What factors determine the ideal span of control?

  Nature of the task and workforce skills
• What does centralisation describe in an organisation?

  Describes the extent to which decision making power and authority is delegated within an organisation
• What characterizes a centralised structure?

  Decision-making power is with top management
• What defines a decentralised structure?

  Delegates decision-making to lower workers
• How do many businesses approach centralisation and decentralisation?

  They use a combination based on decisions
• What influences decisions on centralisation versus decentralisation?

  Internal factors and past approach outcomes
• What is a flat organisational structure?

  Has few levels of hierarchy and wide span of control
• What characterizes a tall organisational structure?

  Large number of hierarchy layers and has a long chain of command
• What are features of a tall structure with narrow spans of control?

  • More promotional opportunities but higher costs as there’s more staff
  • less delegation may mean less stress but can lead to low morale
  • longer chains means takes longer to make decisions
• What is a disadvantage of a tall structure?


  Important details can be lost in reporting
• What are features of a flat structure with wide spans of control?

  • Managers must delegate effectively due to less time for each subordinate
  • hard to supervise closely but may be more motivating as more flexibility
  • more delegation means more opportunities
  • communication is faster and less costly
• How does a flat structure affect employee responsibility?

  More delegation gives greater responsibility
• What is delegation in an organisational context?

  Passing authority down the hierarchy
• How does a matrix structure differ from traditional structures?

  Employees may report to multiple bosses
• What is a key feature of a matrix structure?

  Combines functional departments with project teams
• What are the advantages of a matrix structure?

  • Avoids functional conflicts
  • Speeds up processes for competitive advantage
  • Enriches team members' experiences
• What are the disadvantages of a matrix structure?

  • Employees have two bosses
  • Difficulty in prioritizing tasks
  • Potential decision-making struggles
• What does an organisational chart represent?

  • Hierarchical structure of an organisation
  • Relationships between different roles
  • Flow of authority and responsibility
• Why were tall structures expensive to run?

  Due to high management salaries
• What communication issue arose from tall structures?

  Communication was very difficult
• Why are more companies becoming flatter today?

  To reduce costs and improve communication
• Why is organisational structure important as businesses grow?

  Everyone must know their roles and accountability
• What problems can poor organisational structures cause?

  Poor communication leading to mistakes
• What is a consequence of task duplication in poor structures?

  Tasks being overlooked