1.4.3 Organisational Design

• hierachy - a system of ranks or levels of authority in an organization
• Board of directors - gives direction to the business and is responsible for the overall management of the business
• Managers - Make sure targets are set
• Supervisors - Ensure that employees carry out their duties effectively day to day
• Team Leaders - responsible for a team of supervisors and employees
• Employees - do the work required by the organisation
• Span of control - The number of subordinates a manager is responsible for, can be wide or narrow
• Chain of command - The line of communication and authority existing in a business
• Surbordinate - A person who is under the authority or control of another within the organisation
• Tall Structure - has lots of layers of hierachy, a long chain of command and narrow spans of control
• Tall Structure adv. 1 - more layers of hiercahy which means more oppurtunities for promotion this can be a source of motivation
• Tall Structure adv. 2 - tighter control over subordinates because of the narrow spans of control
• Tall Structure adv. 3 - it is easier to communicate horizonatlly as there is less people each layer (smaller lines of communication)
• Tall Structure disadv. 1 - more layers makes slower descision making
• Tall Structure disadv. 2 - Employees can feel more micromanaged and demotivated if span of control is too narrow
• Flat Structures - Has few layers of hierachy, short chain of command and wide spans of control
• Flat strucrures adv. 1 - Employees are given more responsibility and freedom which can be motivating
• Flat strucrures adv. 2 - Quicker descision making as a result of less layers of hiercahy
• Flat strucrures adv. 3 -Shorter lines of communication as there are shorter chains of command
• Flat strucrures disadv. 1 - managers may feel overwhelmed as they have more subordinates
• Flat strucrures disadv. 2 - horizontal communication amy take longer as a result of wider spans of control
• Flat strucrures disadv. 3 - Less chances of promotion which could demotivate staff
• Delayering - removing one or more levels of hiercahy from the organisational structure
• Business may delayer to help lower costs in the long term to save money for salaries
• Business may delayer as a results of managers feeling stressed or overwhelmed
• Business may delayer to create a flatter structure
• Centralised Structure - A structure where the decision making is centralised and decisions are made by a single person or a small group of people